Co-founder and CEO of Robinhood, Vlad Tenev, commented on Britain’s hawkish approach to crypto, especially when compared to gambling.
In an interview with the Times, Tenev expressed his desire to expand Robinhood’s business into the UK, highlighting its potential to become a “financial home in the UK market.”
Robinhood first began offering shares to the UK market last year. The crypto-focused financial firm opened its margin trading last month, giving customers the opportunity to place even bigger bets by taking out loans from the firm.
“It’s pretty clear that [British] customers love the product, and they’re looking to bring all of their financial activities to Robinhood,” said Tenev.
When asked whether he is worried that UK regulations will hinder the firm’s market expansion due to recent concerns regarding crypto, Tenev stated that he is mostly unbothered. In fact, he underlined just how “backwards” their stance is on crypto, considering gambling is a much larger problem in the country, and yet it is not touched upon as much as crypto.
“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,” said Tenev.
Tenev’s comment was in direct reference to a remark made by the Chief Executive of NHS England, Amanda Pritchard about unregulated crypto trading sites. In June, the NHS revealed that more young men are seeking treatment from NHS clinics after becoming “addicted” to crypto trading, with the health service calling for action against “unregulated cryptocurrency sites.”
“The service is constantly adapting to real and growing social need, including the increasing popularity of cryptocurrencies which I heard about when visiting one of our 15 gambling harm clinics earlier this year,” said Pritchard in a separate Times article.
The UK has taken on a much stricter stance against crypto, especially compared to the United States’ with President-elect Trump’s growing support towards the crypto industry.
Most recently, the UK was reported to start introducing laws regulating stablecoins after regulators raised concerns over the stability and transparency of digital assets like Bitcoin(BTC).
In Oct. 21, the U.K. Financial Conduct Authority’s head of payments and digital assets, Val Smith argued that the agency’s decision to implement a strict registration process for crypto businesses is necessary for protecting consumers.
Statistics showed over 87% of crypto registration attempts to were either rejected, withdrawn, or denied by regulators.
Smith mentioned the FCA expert’s are taking a cautious approach due to crypto’s potential to be used as a tool to facilitate illicit activities, highlighting the risks of terrorism, organized crime, and human trafficking.