Robinhood is expanding its cryptocurrency services in Europe by enabling users to deposit and withdraw crypto using external platforms.
Starting October 1, Robinhood Crypto, the company’s crypto subsidiary, launched the new feature allowing European customers to transfer around 20 cryptocurrencies, including Bitcoin and Ether, to and from other platforms such as exchanges or wallets.
This development follows Robinhood’s entry into the European crypto market in late 2023, where customers could initially only trade crypto on its platform without the ability to transfer assets in or out. The expansion now simplifies self-custody and access to decentralized finance (DeFi) for users, giving them more control over their crypto holdings.
Johann Kerbrat, vice president and general manager of Robinhood Crypto, highlighted that the new feature aligns with the company’s goal of providing a safe, low-cost, and reliable experience for users in Europe.
“Support for deposits and withdrawals gives customers more control over their crypto, while ensuring they have the same safe, low-cost, and reliable experience they expect from Robinhood,” he added.
To use the crypto transfer feature, users must complete identity verification and enable two-factor authentication. Robinhood’s crypto services in Europe are provided through its subsidiary RHEC, registered and regulated in Lithuania.
Robinhood is also mulling the launch of its own stablecoin, betting that stricter regulations in Europe could loosen Tether’s dominance in the $170 billion digital asset market.
However, with the European Union’s Markets in Crypto-Assets (MiCA) regulation set to take full effect by the end of the year, Tether could face new challenges. MiCA requires stablecoin issuers to hold specific licenses, which could force exchanges in the EU to delist non-compliant tokens like USDT.
Circle, the issuer of USDC, already holds the necessary EU license and is preparing for a U.S. initial public offering. Meanwhile, Tether CEO Paolo Ardoino voiced concerns about the risks posed by EU rules, noting that the company is working on a “technology-based solution” for the region.
Earlier in September, Robinhood’s cryptocurrency division agreed to pay a $3.9 million penalty to settle an investigation by California’s Department of Justice.
The probe found that from 2018 to 2022, Robinhood did not allow customers to withdraw their cryptocurrency, forcing them to sell it back to the platform to exit. The settlement also revealed that Robinhood misled customers about securing the most competitive prices across multiple trading venues.
Under the agreement, Robinhood must enable customers to withdraw their crypto assets and clearly inform users about potential delays in settlement if network security concerns arise.
