US Broker Robinhood Obtains Lithuanian A-Category MiFID Brokerage and MiCA License for Crypto Services in the European Union

Robinhood Europe, UAB, a subsidiary of the NASDAQ-listed US broker Robinhood Markets, Inc. (NASDAQ: HOOD), has been granted the first Lithuanian Crypto-Asset Service Provider (CASP) license under the new European Union Markets in Crypto-Assets (MiCA) Regulation. This is the second license issued by the Bank of Lithuania to Robinhood, complementing its existing A-category brokerage license.

EU-Wide Crypto and Securities Brokerage Licenses

Both of Robinhood’s licenses, issued in Lithuania, are EU passportable. This allows Robinhood to offer crypto and securities brokerage services across the entire European Union and European Economic Area (EU/EEA).

The Robinhood Lithuanian CASP license, granted under the MiCA Regulation, authorizes Robinhood to provide the following crypto services:

• Providing custody and administration of crypto-assets on behalf of clients
• Providing transfer services for crypto-assets on behalf of clients
• Execution of orders for crypto-assets on behalf of clients
• Reception and transmission of orders for crypto-assets on behalf of clients

This new license replaces Robinhood’s previous Lithuanian national crypto exchange and crypto wallet (VASP) authorization, extending its reach across the entire European Union.

The Robinhood Lithuanian A-category brokerage license, issued under the Markets in Financial Instruments Directive (MiFID), covers the following services:

• Reception and transmission of client orders
• Execution of client orders on behalf of clients
• Dealing on own account

Robinhood isn’t the only global player to secure a MiFID brokerage license in Lithuania, granting access to the entire European Union financial market. Revolut, a global banking and payment processor received a B-category MiFID brokerage license in 2021. Revolut also holds a Lithuanian banking license.

The world’s biggest crypto exchange, Binance, has been present in Lithuania since 2020. ECOVIS ProventusLaw advised Binance on setting up the company in Lithuania and obtaining its Virtual Assets Service Provider (VASP) registration.

ECOVIS Serves Robinhood’s European Business

Since 2023, ECOVIS ProventusLaw has been serving Robinhood’s business in Europe, starting with the incorporation of Robinhood Europe, UAB, and its registration as a Virtual Assets Service Provider (VASP) in Lithuania.

Robinhood’s decision to obtain these two important licenses in Lithuania underscores the country’s growing reputation as a leading European jurisdiction for crypto and FinTech companies seeking pan-European operational licenses. ECOVIS ProventusLaw played a significant role in facilitating Robinhood’s choice of Lithuania as its home jurisdiction for the EU, further highlighting Lithuania’s growing appeal to finance institutions and FinTech companies operating within the European financial market.

More about MiCA crypto license.

More about MIFID investment advisory and securities brokerage license.