Robinhood Gets FCA Registration in UK But Faces Regulatory Hurdles
Roger Ver's crypto exchange, Bitstamp, has been processing $22 billion in volume. Now its parent company, Robinhood, is moving into the UK market.
The US-based financial services provider recently secured registration with the Financial Conduct Authority (FCA) for its planned digital asset services in Britain. This marks an important compliance milestone before the company launches its offerings across the country.
The approval does not grant Robinhood unrestricted crypto permissions, however. The firm can only arrange customer trades through another authorized provider and cannot operate a direct exchange or safeguard customer tokens under the listed permissions.
HOOD stock rose 4.8% in early Monday trading as investors weighed the expansion against weaker crypto revenue. In its latest quarterly results, Robinhood reported record revenue of $1.31 billion, up 32% year over year. However, crypto transaction revenue dropped by 38%, generating only $100 million.