Robinhood launches crypto services in the EU, with zero fees and a referral rewards program

The online brokerage firm Robinhood announced the launch of its cryptocurrency trading app in the European Union, which officially went live on 12/7 yesterday, offering investors access to 25 cryptocurrencies including Bitcoin, Ethereum, and SOL. Robinhood also provides trading rebates and referral bonuses in the form of Bitcoin to reward users.

Zero Trading Fees and the Opportunity to Earn Bitcoin Referral Bonuses

The online brokerage firm Robinhood, which has always emphasized commission-free services, is now aggressively entering the European market by comparing various fee rates ranging from 0.42% to 3.33% on its official website, while Robinhood maintains its consistent policy of zero trading fees.

Robinhood generates revenue by receiving rebates from market makers and exchanges. Johann Kerbrat, General Manager of Robinhood Crypto, stated that in Europe, the rebate for each transaction is approximately 65 basis points, nearly double the 35 basis points in the United States.

To attract EU users, Robinhood also offers users the opportunity to earn up to one Bitcoin in rewards based on the percentage of their monthly trading volume and the number of users they referred during registration.

In a statement, Kerbrat said:

The EU has one of the most comprehensive regulatory frameworks for crypto assets in the world, which is why we chose this region for the international expansion of Robinhood Crypto.

Robinhood Emphasizes Transparency and Security

According to a report by CNBC, Robinhood is promoting the transparency and security features of its European crypto products to convince users to trade using its services. The company stated that it will transparently display the trading spread, including the rebates it receives from sales and trade orders.

In addition to operational purposes such as paying blockchain network fees, Robinhood ensures that customer tokens are never mixed with corporate funds and that all customer tokens are stored in cold wallets.

Furthermore, Robinhood has established a crime insurance policy to ensure that a portion of the assets held in its storage system is protected from losses due to theft, including cybersecurity vulnerabilities. This policy is underwritten by Lloyd’s.

Regulatory Challenges for Robinhood in the UK

During its earnings conference in November, Robinhood initially planned to launch its services in the UK first, offering not only stock brokerage services but also cryptocurrency trading, with later expansion into other EU regions. However, it seems to have encountered regulatory challenges in the UK.

According to a report by CNBC, Robinhood had hoped to acquire the UK cryptocurrency trading app Ziglu last year to enter the UK crypto market. However, the deal ultimately failed, forcing Robinhood to write off its investment value and recognize a $12 million impairment charge.

Last week, Robinhood opened registration for UK users to join a waiting list for early access when registration opens. To gain more attention quickly, Robinhood also asked users to share unique referral links with friends and family to improve their spot in the waiting list.

However, the Financial Conduct Authority (FCA) of the UK recently introduced several restrictions on cryptocurrency firms regarding registration and advertising methods, leading exchanges like Bybit to exit the UK. Robinhood's promotional approach in the EU, which involves referral bonuses, seems unlikely to be applicable in the UK, making this its third attempt to launch services in the UK.

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