Robinhood CEO Criticizes UK’s "Backwards" Crypto Stance

Vlad Tenev, co-founder and CEO of Robinhood, has criticized the UK’s approach to cryptocurrency regulation, calling it "backwards" in comparison to the country’s stance on gambling. Tenev made the comments during an interview with The Times, where he expressed frustration over the UK’s growing skepticism towards crypto, especially in light of the country’s much more permissive attitude towards gambling.

Tenev, who has expressed a desire to expand Robinhood’s operations in the UK, highlighted the potential for the company to establish a strong presence in the British market. Robinhood, which began offering shares to UK customers last year, expanded further by launching margin trading in October, enabling customers to take out loans for larger trades.

“It’s pretty clear that UK customers love the product, and they’re looking to bring all of their financial activities to Robinhood,” Tenev said, emphasizing that demand for the platform’s offerings is strong.

However, when asked about the challenges posed by UK regulations, particularly with regard to cryptocurrency, Tenev downplayed his concerns. He expressed bewilderment over the UK’s crypto stance, comparing it to the country’s more relaxed approach to gambling, which he sees as a much larger issue.

His comments come after remarks made by Amanda Pritchard, Chief Executive of NHS England, who highlighted the rise in crypto trading addiction. In June, the NHS revealed that more young men are seeking treatment for issues related to unregulated crypto trading platforms, prompting calls for regulatory action.

Pritchard noted that the NHS is adapting to the growing popularity of cryptocurrencies, citing visits to gambling harm clinics, where crypto-related issues are becoming more common.

The UK’s approach to crypto has become notably stricter compared to other major markets, such as the US. While the UK grapples with concerns about crypto’s potential risks, including its use in illicit activities, the US has been more open to embracing the industry, with former President Donald Trump increasingly supportive of crypto.

The UK has recently signaled plans to introduce more stringent regulations on stablecoins, following concerns from regulators about the transparency and stability of digital assets like Bitcoin. In a speech on October 21, Val Smith, head of payments and digital assets at the UK’s Financial Conduct Authority (FCA), explained that a strict registration process for crypto businesses is necessary to protect consumers. The FCA has rejected or denied over 87% of crypto registration applications, citing the risk of fraud, money laundering, and other illicit activities associated with the industry.

While the UK takes a cautious approach, Tenev remains focused on expanding Robinhood’s presence, despite the regulatory challenges.