The CEO of Robinhood has said the UK’s decision to restrict crypto “while allowing widespread gambling doesn’t make sense.” [Image: Shutterstock.com]

Crypto stance criticized

The CEO of US-based stock trading platform Robinhood has accused the UK of being “backward” in its regulatory stance on cryptocurrency given the country’s mature gambling market.

Vlad Tenev believes the UK’s stringent regulatory approach to cryptocurrency is at odds with how gambling is thriving in the country courtesy of more lenient regulations. 

The Robinhood exec’s British focus comes after he told The Times recently that he plans to launch his brand in the UK. 

Tenev is openly challenging the rules at policy level

Instead of being daunted by the regulatory challenges facing his crypto firm, Tenev is openly challenging the rules at policy level, stating: “Restricting crypto and margin trading while allowing widespread gambling doesn’t make sense.”

Bigger than the US

According to media reports, Robinhood has already rolled out its share and margin trading to UK customers, within Tenev stating it was “pretty clear that [British] customers love the product.”

Nevertheless, the exec believes UK’s stance on crypto limits consumer choice and stifles innovation. Openly criticizing UK policy, Tenev said it was “strange” for gambling to continue while authorities have “a problem” with crypto and margin trading. He added:

That just seems backwards to me.”

Tenev added British customers “should be allowed to do what they want with their money.” 

The Robinhood boss also expressed his surprise at “how much bigger” gambling was across the pond compared to the US. Referencing a trip to the UK, the CEO stated “you can almost go into every street corner and sit down and gamble on sports.” 

The UK’s Financial Conduct Authority (FCA)’s hard-nosed approach to crypto is because it fears the digital currency being used for illegal activities such as organized crime and terrorism financing.

According to bravenewcoin.com, “over 87% of crypto registration attempts in the UK have been rejected, withdrawn, or denied by regulators.”

Winds of change

The contrast with the US couldn’t be bigger since Donald Trump returned to power, with individual billionaires with crypto interests donating millions to secure Trump’s second term. 

In response, since returning to the White House, Trump’s social media firm is reportedly mulling a deal to buy crypto trading firm Bakkt, while on Monday, the President held a meeting with Coinbase CEO Brian Armstrong. 

As crypto market leader Bitcoin hit another record high on Tuesday to add to a series of highs since Trump’s return to the helm, it remains to be seen how these fresh winds of change will affect UK policy.