Robinhood wins UK crypto approval before new rules take effect

Robinhood’s UK subsidiary was added on July 31 to the Financial Conduct Authority’s register of cryptoasset firms, but the approval is narrower than a full-service crypto launch. The registration allows Robinhood U.K. Ltd to arrange crypto transactions by passing customer orders to other firms, while barring it from operating a crypto exchange, holding customers’ coins or holding client money. The limited scope suggests Robinhood has cleared an important regulatory step in Britain without yet securing the permissions needed for trading, custody or staking services of the kind it offers in parts of Europe. Robinhood has been an FCA-approved stockbroker in Britain since August 2019, and already owns Bitstamp UK Ltd, which joined the crypto register earlier and could become an obvious destination for UK order flow after Robinhood bought its parent for $224 million in June 2025. The approval follows Robinhood’s July statement that it planned to start UK crypto soon, even as its own disclosures still say UK customers do not currently get crypto trading or custody. The registration also does not provide a customer protection backstop: the FCA warns crypto services are unlikely to be covered if something goes wrong, with the UK compensation scheme rarely covering crypto losses and the financial ombudsman usually unable to help. Robinhood’s timing also leaves it facing another regulatory hurdle. The current registration will not carry over when tougher UK crypto rules take effect on October 25, 2027, and firms on today’s register must apply again during a five-month window or stop most crypto activity. The question for investors is whether Robinhood later seeks broader permissions. Crypto transaction revenue fell 38% to $100 million in the second quarter, while total revenue reached a record $1.31 billion. HOOD closed Friday at $86.56 and traded at $87.22 before the bell, up 0.76%, versus a 52-week high of $153.86.