Robinhood UK crypto approval is now official. The FCA added Robinhood’s UK unit to its authorized list.
This allows the firm to offer crypto services legally. HOOD stock rose 0.77% in premarket trading.
Why Robinhood UK crypto approval matters
The FCA registration enables Robinhood to operate legally. It meets UK anti-money laundering requirements. The regulator unveiled its crypto registration system in 2020.
Over 50 companies have been approved under this framework. Ripple and Kraken are already on the FCA list. Traditional firms like BlackRock and BNY are also present.
New UK crypto rules coming
The approval arrives at a key time for the UK. The nation is planning comprehensive crypto regulation. Companies will need permission to operate under new laws.
Applications will likely start at the end of September. The process will continue through February next year. The new rules will then go into effect in October.
Existing FCA-registered firms have a head start. They already have compliance systems in place. This may minimize the effort required to meet new rules.
Robinhood’s crypto revenue
The news is positive for Robinhood’s business. The firm recently reported declining crypto revenue. Q2 earnings showed crypto revenue fell to $100 million. Regulated offerings in a new jurisdiction could help expand reach.
