The post Robinhood Expands Crypto Trading to EU Markets Despite a 26% Slide in Cryptocurrency Revenue appeared first on Coinpedia Fintech News Robinhood, a well-known online brokerage platform, has announced plans to launch cryptocurrency trading in the European Union “in the com...
The post Robinhood Expands Crypto Trading to EU Markets Despite a 26% Slide in Cryptocurrency Revenue appeared first on Coinpedia Fintech News
Robinhood, a well-known online brokerage platform, has announced plans to launch cryptocurrency trading in the European Union “in the coming weeks”, according to its third-quarter earnings report.
Reports Shows Decrease in Crypto Trading Revenue
According to the reports shared by the firm, there has been a decrease in its cryptocurrency trading revenue for the third quarter of 2023. Despite plans to expand crypto trading into Europe, Robinhood’s revenue from crypto dropped 26% from the previous quarter to $23 million. The company also reported a 55% downswing in year-over-year crypto revenue, from $51 million in 2022. This comes as the number of crypto assets held on behalf of customers decreased by about 11% from the previous quarter to $10.2 billion. Robinhood’s share price dropped as much as 7.5% in after-market trading.
“Looking ahead, we remain focused on providing industry-leading products that serve far more of customers’ financial needs, gaining market share, expanding internationally, and continuing to change the industry for the better,” Vlad Tenev, CEO and cofounder, said in a statement.”
Expansion of Crypto Trading in Europe
Robinhood is reportedly planning to expand its cryptocurrency trading into Europe. The firm announced its expansion into the U.K. earlier this year. Despite a decline in revenue from crypto trading in the third quarter of 2023, the company aims to expand further in the crypto market. This follows the unveiling of Robinhood’s crypto wallet in 2022 and its scaling back of offerings in the U.S. due to enforcement actions from the Securities and Exchange Commission. Robinhood’s expansion into Europe represents a bold move as the company seeks to increase its presence in the global crypto market.
Robinhood Faces Regulatory Obstacles to Crypto Business Expansion
Robinhood has delisted the tokens from its crypto trading platform, according to recent reports. The move comes as the company seeks to distance itself from market makers like Jump Crypto, one of the largest providers of liquidity to the crypto market. The decision to terminate the business relationship follows increased scrutiny from the SEC over Jump Crypto’s association with TerraUSD’s creator, Do Kwon. Robinhood has not yet commented on the decision to remove the tokens from its platform.
Despite the challenges, Robinhood’s CEO, Vlad Tenev, remains optimistic about the crypto market and sees expansion into Europe as an opportunity to offer new assets to users. However, in the U.S., the company is still waiting for regulatory guidance, which could hamper innovation in the cryptocurrency market.