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Join WhatsApp channelRobinhood CEO Vlad Tenev has openly criticized the United Kingdom’s stringent regulatory stance on cryptocurrency, calling it “backwards” compared to its leniency toward gambling. In an interview with The Times, Tenev highlighted the inconsistency, arguing that the UK’s restrictive crypto policies contrast sharply with its permissive approach to gambling, a far larger issue in the country.
Robinhood’s UK Expansion Plans
Tenev expressed optimism about expanding Robinhood’s footprint in the UK, describing the market as a potential “financial home.” Robinhood, which launched its stock trading platform in the UK last year, recently introduced margin trading, enabling customers to leverage loans for larger investments.
“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.
Despite his confidence in customer demand, Tenev acknowledged the potential challenges posed by the UK’s strict crypto regulations, which he described as contradictory given the permissive gambling laws.
A “Strange” Policy Disconnect
Addressing the UK’s treatment of crypto, Tenev criticized its apparent double standard:
“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.”
Tenev’s remarks follow comments from Amanda Pritchard, Chief Executive of NHS England, who raised concerns over the rise in young men seeking addiction treatment for crypto trading. Pritchard linked unregulated crypto platforms to growing societal harm, calling for more stringent oversight.
UK Tightens Crypto Regulation
The UK’s regulatory approach toward crypto has grown increasingly restrictive in recent years. The Financial Conduct Authority (FCA) has implemented strict registration processes for crypto businesses, with an 87% rejection rate for applicants due to concerns over financial crime, terrorism, and human trafficking risks.
Val Smith, head of payments and digital assets at the FCA, defended the cautious stance, citing the need to protect consumers and ensure market stability. Additionally, the UK is considering laws targeting stablecoins amid concerns over their transparency and systemic risk.
A Contrast with U.S. Policy
Tenev also noted a stark contrast between UK and U.S. crypto policies, pointing to growing support for the crypto industry under President-elect Donald Trump. The divergence could shape Robinhood’s strategy as it seeks to expand internationally.
Implications for the Crypto Industry
Tenev’s critique reflects broader tensions between crypto innovators and regulators, as governments grapple with balancing consumer protection with fostering financial innovation. Robinhood’s ambitions in the UK may depend on whether the nation adopts a more balanced regulatory framework that aligns with global trends.
