What to know:
- Robinhood gains FCA crypto registration in the UK.
- New FCA authorization will still be required by 2027.
- Approval supports Robinhood’s UK crypto expansion.
Robinhood secured UK crypto registration after its local subsidiary joined the Financial Conduct Authority crypto asset register on July 31. The approval confirms compliance with anti-money laundering rules. It permits cryptocurrency services under the current system.
Britain introduced FCA registration for crypto firms in 2020. The regime focuses on money laundering and terrorist financing controls. Over 50 firms are listed, including Ripple, Kraken, BlackRock and BNY.
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How FCA Deadlines Affect Robinhood
The current registration does not provide automatic approval under Britain’s new crypto framework. The regime will take effect in October 2027. Firms conducting regulated crypto activities will need FCA authorization after that date.
Applications for the new regime open on September 30, 2026. The window closes on February 28, 2027. Robinhood must apply again to provide crypto activities covered by the incoming rules.
Firms applying then can use a savings provision. It permits eligible businesses to operate if reviews remain unfinished in October 2027. Protection continues until the FCA makes a final decision.
Applications can still arrive after the window closes. The FCA will not accelerate its reviews for late applicants. Unapproved late applicants face limits and cannot sign contracts when the framework begins.
Registration does not ensure future approval. The FCA will consider the application based on financial services regulation. Existing firms receive no automatic priority in the licensing process.
The approval follows Robinhood’s plan to scale up its crypto business. This was reiterated by Robinhood in its Q2 earnings of July 29, and it has not provided any launch date.
Robinhood Expands as Crypto Revenue Falls 38%
Cryptocurrency transaction revenue fell 38% year over year to $100 million in Q2. Total transaction-based revenue increased 44% to $776 million.
Several digital asset projects have been launched by Robinhood in the second quarter. Some of them include Robinhood Chain, Stock Tokens, and Robinhood Earn. Stock Tokens are now available to eligible wallet users in over 120 countries.
The company acquired Canadian crypto platform WonderFi. The deal added regulated businesses, including Bitbuy and Coinsquare, to its operations. The results did not link those assets to the UK launch.
Prediction markets were extended via Kalshi, ForecastEx, and Rothera. Rothera operates through a joint venture between Susquehanna International Group. Management said that several markets increase choices and limit dependency on suppliers.
What New FCA Rules Mean for UK Crypto Firms
FCA registration gives permission based on the current British regulations. However, the company has not disclosed its launch schedule. It has not specified cryptocurrencies, services, and customers available.
New rules cover more activities than the current registration system. They include cryptocurrency trading platforms, custody, staking, and other transactions. Qualifying stablecoin issuance is also included in the expanded regulation scope.
The companies that avoid authorization should get ready to leave the British market. They need to end their crypto business before the regulatory framework takes effect. Failure to do so may lead to the breaking of the unauthorized financial activities rule.
The July 31 registration confirms compliance with the current anti-money laundering regulations. Nevertheless, there will be an additional FCA authorization under the 2027 framework. The platform has not confirmed when its UK crypto services will launch.
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