The well-known American brokerage firm Robinhood (HOOD) began allowing its clients in the European Union (EU) to trade cryptocurrency on Thursday, praising the EU’s extensive regulations governing digital assets.
In an effort to entice users to use the service, Robinhood announced on Thursday that it would reimburse users for a portion of their monthly trading volume, paid in bitcoin (BTC). In addition, users who refer new clients can earn additional Bitcoin.
The launch of this expansion coincides with a surge in cryptocurrency values following a severe bear market, with the market capitalization reaching a record high of $1.5 trillion, the highest since May 2022. The largest cryptocurrency, Bitcoin, has increased dramatically recently. Increasing trading volumes also result in higher platform revenue.
A comprehensive regulatory framework for digital assets known as MiCA is set to be implemented by EU member states in the near future, providing legal certainty for cryptocurrency service providers and enhancing the region’s standing as a global hub for the industry.
The general manager of Robinhood Crypto, Johann Kerbrat, stated in the blog post, “We chose the region to anchor Robinhood Crypto’s international expansion plans because the EU has developed one of the most comprehensive policies for crypto asset regulation in the world.”
The company started onboarding customers last week after revealing plans to launch brokerage operations in the United Kingdom in its third-quarter earnings report. Up about 40% so far this year, Robinhood’s stock price is trailing the massive 300% increase of cryptocurrency exchange giant Coinbase (COIN).