In a recent interview with The Times, Tenev expressed his desire to expand Robinhood’s crypto trading services into the UK market, despite potential regulatory hurdles.
“It’s pretty clear that [British] customers love the product, and they’re looking to bring all of their financial activities to Robinhood,” Tenev stated. Robinhood began offering share trading to UK customers last year and recently introduced margin trading, allowing qualified users to borrow funds to amplify their trading positions.
Source: Robinhood
When questioned about the possibility of UK regulations hindering the firm’s market expansion, especially concerning crypto and margin trading, Tenev appeared largely unconcerned. He highlighted what he sees as an inconsistency in the UK’s regulatory policies, noting that while gambling is widespread and accessible, crypto trading faces increased scrutiny.
“I was surprised when I went to the UK by just how much bigger gambling was than in America. Like, you can almost go into every street corner and sit down and gamble on sports,” Tenev remarked. “I think people should be allowed to do what they want. But on a policy level, it’s just strange to me that, like: ‘the gambling will continue, but suddenly, with crypto and margin trading, we would have a problem with that.’ That just seems backwards to me.”
Rise in Addiction to Crypto Trading
Tenev’s comments come in response to concerns raised by Amanda Pritchard, Chief Executive of NHS England. In June, the National Health Service reported a rise in young men seeking treatment for addiction to crypto trading, prompting calls for action against unregulated cryptocurrency platforms.
“The service is constantly adapting to real and growing social need, including the increasing popularity of cryptocurrencies which I heard about when visiting one of our 15 gambling harm clinics earlier this year,” Pritchard said in a separate Times article.
The UK’s Financial Conduct Authority (FCA) has adopted a stringent stance on cryptocurrency regulation. Val Smith, the FCA’s head of payments and digital assets, argued that a strict registration process for crypto businesses is necessary to protect consumers. Statistics indicate that over 87% of crypto registration attempts in the UK have been rejected, withdrawn, or denied by regulators.
Smith emphasized that the FCA is taking a cautious approach due to the potential misuse of cryptocurrencies for illicit activities, including terrorism financing, organized crime, and human trafficking. “We have to ensure that crypto assets aren’t being used as a tool to facilitate serious crimes,” she stated.
A Supportive Stance
In contrast, the United States appears to be moving toward a more supportive stance on cryptocurrency. President-elect Donald Trump’s growing support for the crypto industry signals a divergent regulatory environment between the two nations.
Tenev believes that the UK’s regulatory approach could stifle innovation and limit consumer choice. “People should be allowed to do what they want with their money,” he said. “On a policy level, restricting crypto and margin trading while allowing widespread gambling doesn’t make sense.”
Despite the regulatory challenges, Robinhood remains committed to expanding its presence in the UK. “We have the potential to really be people’s financial home in the UK market,” Tenev asserted. “The goal is, ten years from now, we should be a global company serving customers all over the world. All of their financial transactions should go through Robinhood.”
