Robinhood CEO Calls Out UK for ‘Backwards’ Approach to Crypto

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

November 17, 2024

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Robinhood CEO Vlad Tenev criticized UK policymakers for their “backward” stance on crypto trading, especially when compared to regulated gambling.

Speaking to The Times, he argued that individuals ought to have the freedom to make trading decisions as they see fit, despite concerns about young people becoming “addicted” to crypto trading.

Earlier this year, Amanda Pritchard, the UK’s NHS chief, raised concerns about a rise in young men seeking treatment for Bitcoin trading addiction. She urged stricter regulations on crypto platforms to prevent further harm.

In reaction to this, Tenev said: “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.”

Cryptocurrencies Draw Comparisons to Gambling Due to High Volatility

Analysts often compare cryptocurrencies like Bitcoin to gambling due to their extreme volatility.

They contend that crypto prices are highly unpredictable, offering the chance for big gains but also significant losses, much like gambling. One study revealed that 40% of crypto owners see trading as gambling, considering it a high-risk activity with serious financial stakes.

Robinhood’s Expansion Targets the UK as a Key Market

Further, Tenev shared his vision to transform Robinhood into a global financial powerhouse, comparable to JP Morgan. He aims to manage everything from small Bitcoin trades to retirement accounts and AI-driven financial planning. And the UK is his chosen point for this bold expansion.

The British government is reportedly moving to counter the crypto industry’s attraction to Donald Trump’s US policies. It plans to unveil regulatory measures for the sector this month. The legislation will focus on stablecoins and crypto staking, aiming to create a balanced and comprehensive framework for digital assets.