- Robinhood appoints Jordan Dane Sinclair as CEO for U.K. expansion.
- Previous attempts to enter U.K. market were terminated due to accusations.
- Robinhood faces financial challenges and uncertain availability of cryptocurrency trading in the U.K.
Robinhood has made a strategic move in the crypto industry by appointing Jordan Dane Sinclair as the CEO for its upcoming U.K. expansion, scheduled to occur by the end of this year. This marks Robinhood’s latest endeavor to establish a presence in the U.K. market. Before joining Robinhood, Sinclair was managing director at Freetrade, a renowned investment company based in London.
Robinhood, the popular U.S. stock trading app, made two previous attempts to enter the U.K. market. In 2019, the company successfully obtained a license from the Financial Conduct Authority and urged individuals to join a waitlist for the forthcoming U.K. platform. Additionally, Robinhood intended to acquire Ziglu, a London-based cryptocurrency trading firm, as part of its expansion plans.
Nevertheless, the company’s attempt to expand in the U.K. was terminated in 2020 due to accusations of deceiving customers. Robinhood faced further scrutiny from politicians following the tragic suicide of a 20-year-old who erroneously believed he had incurred a loss of $730,000. Sean Casten, a respected American businessman, and U.S. representative, asserted that Robinhood should bear some responsibility for this unfortunate event. He emphasized the need for Robinhood to implement measures that safeguard young and inexperienced investors if it intends to continue targeting this demographic.
In a 2019 interview with CNBC, Wander Rutgers, the former president of Robinhood’s U.K. company, emphasized its commitment to delivering top-notch product development to customers in the U.K., drawing upon their extensive experience in the U.S. market.
However, following the accusations, Robinhood has decided to cease accepting new registrations and remove their website for the U.K. market. “The global landscape has undergone significant transformations in recent months, and we are actively adjusting to these changes. As a company, we have acknowledged that our primary focus should be fortifying our core operations within the United States and allocating resources to enhance our fundamental infrastructure.”
Moreover, Robinhood has encountered financial challenges, as reported by The Business Journals. The company faced a $70 million fine from the U.S. Financial Industry Regulatory Authority in 2021 due to technical glitches. Furthermore, its revenue witnessed a decline of 25% in 2022 compared to the previous year.
Robinhood currently offers a range of trading options, including cryptocurrencies. However, the availability of cryptocurrency trading in the U.K. remains uncertain, as the company is yet to obtain crypto registration from the Financial Conduct Authority (FCA).
