American crypto trading platform, Robinhood, has suspended plans to launch in the United Kingdom. The firm informed registered clients in the U.K. that they would be focusing on their home market.
“A lot has changed in the world over the past few months, and we’ve made the difficult decision to postpone our U.K. launch indefinitely. As a company, we are refocusing our efforts on strengthening our core business in the U.S.” a Robinhood spokesperson said.
“Although our global expansion plans are on hold for now, we’re committed to democratizing finance for more people around the world. We look forward to the day when we can bring this mission to the U.K.” the spokesperson said further
Rumors about the American crypto trading platform launching in the U.K. has been going around since 2019. It became more intense after a de-facto confirmation in August, and the firm got regulatory approval in the U.K.
Robinhood crypto trading platform becomes popular
The crypto trading platform popularity rose during the global lockdown period as the app experienced over three million new users sign up.
Afterward, in June, Robinhood experienced an unfortunate event where a 20-year-old user Alexander Kearns had to commit suicide after seeing a negative balance of over $730,000 in his account. The firm did not give details of the occurrence, citing privacy concerns.
Kearns, however, was believed to have been trading options and was not aware of the negative balance on the account was temporary and an error.
The firm is committed now to improve customers’ experience through adding more educational content and donated $250,000 to the American Foundation for Suicide Prevention.
What next in U.K. for Robinhood?
Reportedly, the firm would pull down its U.K. website and close the waitlist. It would delete clients’ email addresses from its system to protect users’ privacy. Most employees also would be transferred to join the U.S. team while others would be let go.
However, the firm remains one of the best American crypto trading platforms and valued at $8.6 billion after raising another $320 million weeks back. The company is speculated to go public soon as Robinhood is yet to set any date for an IPO (Initial Public Offering).