US Trading App Robinhood Introduces ‘Crypto Transfers’ Feature in Europe

Robinhood, the popular trading app in the United States, is expanding its cryptocurrency services in Europe by enabling customers to deposit and withdraw crypto through external platforms. This new feature was officially launched by Robinhood Markets’ crypto subsidiary, Robinhood Crypto, on October 1.

With this latest update, European users can deposit and withdraw approximately 20 cryptocurrencies, including Bitcoin, utilizing various platforms such as crypto exchanges or digital wallets. This significant enhancement allows users more flexibility in managing their crypto assets, making it easier to transfer funds between different services.

Robinhood’s Entry into European Crypto Markets

This launch comes nearly a year after Robinhood first introduced its crypto trading services in Europe in December 2023. The decision to expand into the European market followed increasing regulatory pressures in the U.S., where the company had to halt support for several crypto trading pairs in June 2023.

When Robinhood initially launched its crypto services in Europe, customers were limited to buying and selling cryptocurrencies exclusively on the platform. Users were unable to transfer their crypto assets from external exchanges, such as Binance, to Robinhood for trading, nor could they withdraw their crypto assets from Robinhood to other wallets for storage or trading.

The introduction of the crypto transfer feature marks a significant shift for Robinhood, as it moves to simplify self-custody and facilitate access to decentralized finance (DeFi). Johann Kerbrat, vice president and general manager of Robinhood Crypto, stated that these enhancements are aimed at improving user control over their cryptocurrency:

“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.”

Security Measures for Crypto Transfers

To utilize Robinhood’s new crypto transfer feature, users must complete identity verification and enable two-factor authentication on their accounts. According to Robinhood’s website, the review process for these security measures may take up to five business days before crypto transfers can be enabled.

Robinhood has also clarified that its crypto services in Europe are accessible to eligible customers through an account with Robinhood Europe, which is registered as “RHEC” in the Republic of Lithuania. The company previously announced that RHEC operates under Lithuania’s regulatory framework as a “virtual currency exchange and virtual currency depository wallet operator.”

RHEC is supervised by the Lithuanian Financial Crime Investigation Service under the Ministry of the Interior of the Republic of Lithuania. This regulatory oversight helps ensure that Robinhood’s operations adhere to local laws and standards, providing an added layer of security for users.

Coverage of Robinhood Crypto Services

Robinhood Crypto’s services are available to customers residing in European Union member states that support the Single Euro Payments Area (SEPA). According to data from the European Payment Council, SEPA covers 36 countries and territories, including the 27 EU member states as well as the United Kingdom, Iceland, Norway, Liechtenstein, Switzerland, and more.

Robinhood’s expansion into the European cryptocurrency market reflects a growing trend among trading platforms to enhance their offerings and adapt to consumer demands for more comprehensive services. By allowing crypto transfers, Robinhood is positioning itself as a more versatile player in the competitive landscape of crypto trading, appealing to users who want greater control over their assets.

This move could potentially attract new customers looking for platforms that facilitate easy access to both trading and transferring cryptocurrencies. Additionally, it underscores the increasing importance of regulatory compliance as companies navigate the complex landscape of cryptocurrency regulations.

With the launch of its crypto transfer feature in Europe, Robinhood is taking significant strides to enhance its cryptocurrency services and user experience. As the demand for flexible and accessible crypto solutions continues to rise, this development positions Robinhood favorably in a rapidly evolving market. The ability for users to deposit and withdraw cryptocurrencies easily may help the platform capture a larger share of the European crypto trading market.

As Robinhood continues to innovate within the cryptocurrency space, its ongoing developments will be closely watched by investors and users alike.