Robinhood secures UK crypto registration ahead of new FCA rules

Crypto and stock trading platform Robinhood has secured UK crypto registration ahead of the country's new licensing framework.

Summary

• Robinhood has secured FCA registration to offer cryptocurrency services in the United Kingdom.
• The approval comes before the UK's new crypto regulatory framework begins rolling out in late 2027.
• Robinhood had previously said it planned to launch crypto services in the UK after reporting its second quarter results.
• The company joins more than 50 crypto firms already registered under the FCA's anti money laundering regime.

According to a recent announcement, Robinhood has received approval to offer cryptocurrency services in the United Kingdom after its UK subsidiary was added to the Financial Conduct Authority's register of cryptoasset firms on July 31.

Under the FCA's existing crypto registration regime, the approval confirms that Robinhood meets the regulator's anti-money laundering requirements, allowing the company to operate crypto services before the UK's new regulatory framework begins taking effect.

Robinhood gains an early position before new UK rules

Since 2020, the FCA has required crypto businesses operating in the UK to register under its anti-money laundering framework. More than 50 companies currently appear on the regulator's register, including Ripple, Kraken, BlackRock and BNY.

Robinhood's latest approval comes before the UK introduces its new crypto authorization regime. According to the announcement, applications under the updated framework will open at the end of September and close at the end of February next year, with the full regulatory system scheduled to take effect in October 2027.

"Today marks the beginning of a new chapter for Robinhood, and we're excited to take the first important step towards bringing our investing platform to customers in the U.K. I'm thrilled to be a part of Robinhood and our effort to expand into a new international market." -- Wander Rutgers, President, Robinhood International.

Because Robinhood already holds registration under the current framework, the company may have completed part of the regulatory work before the transition begins. Further, the announcement noted that firms already registered under the existing regime could enter the new authorization process with much of that groundwork already in place.

The approval follows Robinhood's earlier statement that it planned to expand its crypto business into the UK.

During its second-quarter earnings release on July 29, the company said it intended to launch cryptocurrency offerings in the country but did not provide a timeline. The latest FCA registration now gives Robinhood the regulatory approval needed to move ahead with those plans.

Robinhood's crypto business has continued to expand even as trading activity softened during the second quarter. The company reported crypto transaction revenue of $100 million, down 38% from a year earlier, although it launched Robinhood Chain, introduced Stock Tokens in more than 120 countries, rolled out Robinhood Earn and completed its acquisition of WonderFi during the same period.

Crypto becomes one part of Robinhood's expansion

Robinhood has increasingly diversified its business outside traditional crypto trading.

Its second-quarter results showed total net revenue rose 32% year over year to $1.31 billion, supported by growth in event contracts, options and equities. Event contracts generated $156 million in revenue during the quarter, making them the company's fastest-growing transaction business.

Separately, The Wall Street Journal reported in July that Robinhood had discussed adding Crypto.com's event contracts to its prediction markets hub. Neither company confirmed an agreement, and the report said the talks could still end without a deal.

Robinhood has already expanded its prediction market network through Kalshi, ForecastEx and Rothera, the exchange it operates through a joint venture with Susquehanna International Group. According to the company, working with multiple exchanges helps provide customers with a wider selection of contracts while reducing dependence on a single supplier.

Registration arrives before a new regulatory phase

The UK's upcoming crypto framework will replace the current registration system with a more comprehensive authorization process covering crypto firms operating in the country.

The registration window under the new framework will remain open for only a limited period before the new rules fully take effect in October 2027. Companies seeking to continue serving UK customers will need to obtain authorization under that system.

Robinhood enters that process after already obtaining FCA registration under the existing anti-money laundering regime. While the company has not announced when its UK crypto services will become available, the latest approval removes an important regulatory requirement ahead of the country's transition to its next phase of crypto oversight.

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