Robinhood, the popular trading platform, has unveiled its plans for a forthcoming expansion into the European market. The company officially announced its active consideration of establishing brokerage operations in the United Kingdom on Tuesday, Nov 7.
The commission-free trading application made this significant announcement in conjunction with the release of its third-quarter results, which highlighted a revenue shortfall. Robinhood attributed this decline in its transaction-based revenue to decreased cryptocurrency trading activity on the platform.
The company disclosed a net revenue of $467 million, which fell slightly short of the average analyst projection of $478.9 million. Nevertheless, this represented a noteworthy 29% increase compared to the corresponding period in the previous year.
Transaction-based revenues saw an 11% year-on-year decrease, amounting to $185 million. This decline was primarily attributed to a substantial 55% reduction in cryptocurrency notional volumes throughout the year, as indicated in RobiRobinhood’souncement on Tuesday.
Despite the dip in cryptocurrency trading activity, Robinhood maintains ambitious goals for its crypto services. The company has recently unveiled its plans to broaden its offerings to include Nevada and, just last month, incorporated support for the meme cryptocurrency Shiba Inu.
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Contacted for further details about their European Union expansion, Robinhood has yet to respond.
This decision coincides with certain crypto companies suspending their services for U.K. customers due to newly implemented regulations. These regulations, which took effect on Oct 8, mandate that crypto firms provide clear risk labels and implement system changes.
In June, Robinhood discontinued its support for cryptocurrencies listed in lawsuits filed by the United States Securities and Exchange Commission against Binance and Coinbase.
Additionally, this included cryptocurrencies like Cardano, Polygon, and Solana. Currently, Robinhood offers trading options for 15 different cryptocurrencies, which include Bitcoin, Ether, Dogecoin, and Avalanche.
This action was taken in response to the U.S. SEC’s focus on certain alternative cryptocurrencies, classifying them as security tokens. However, Robinhood, a regulated exchange, aims to avoid conflicts with the federal securities regulatory authority.
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