Robinhood opines: as a US citizen, I cannot buy cryptocurrency in Spain.

The decision is final and Robinhood wants to know my travel plans.

I am on a world trip and so far I have visited several countries in Central America, Asia and in Europe. Recently Google Fi cut off my data, and I lost Fi VPN on my Pixel. In about a month after that, a pop-up appeared on my Robinhood (RH) app:
”Please upload your ID to verify your California residency”. I uploaded the pictures of my California driver’s license using the app. In about 3 hours I got the message again. I uploaded again, using their website. Then I got the message again. The cycle repeats: I try a VPN from the US (that causes a longer delay), try mock locations, and after 7 or 8 iterations, I contact their support. I get the following email (bold font formatting is original):

Hi xxx,

Thanks for taking the time to reach out. I'd be glad to clarify the issue!

Please be advised that we can only offer cryptocurrency trading within your state of residence. We noticed there was recent activity in your Robinhood Crypto account that was outside of the state you’re approved access to. At this time, you can only sell your cryptocurrencies.

If you didn’t travel outside your state, then you may have been flagged as using the app outside of your state of residence if you use a VPN. Since we’re not available in all 50 states or outside the United States at this time, either of these flags may have resulted in: the inability to place a buy order or a notification asking you to verify your residency. The request will be prompted through the app to upload your valid state ID.

Keep in mind that as long as you're accessing the app outside of your approved crypto state, you'll continue to receive the verification prompts and won't be able to buy crypto. Your account will remain restricted until your return to the United States.

Also, for clarification purposes, would you be so kind to confirm if you're currently residing abroad and for approximately how long?

Your cooperation and understanding in helping us keep Robinhood compliant is highly appreciated. Feel free to reply directly to this email if you have any additional questions or concerns!

Sincerely,

It appears that I ventured outside of my “approved” area where I was allowed to buy crypto. I responded:

Hi Judy,

I am a resident of California and my address is on the California drivers license that I provided. I am currently on a word trip and I have visited Guatemala, Mexico, Turkey, Ukraine and now I am in Spain. I just paid California taxes. Please explain why cannot I buy cryptocurrency via Robinhood?

Best regards,

From their response I understood that they will not make a discretionary decision in my case, they are acting according to a template:

Hi xxx,

Thanks for staying in touch with us.

Since Robinhood Crypto on a state-by-state basis due to individual state regulations on cryptocurrency trading, we can only offer cryptocurrency trading within your state of residence.

If you have a crypto activity outside of your approved state, either physically or via VPN, the app will prompt you to re-verify residency by uploading your ID each time you try to transact outside of the state of residency.

As of the moment, you're only allowed to sell your cryptocurrencies. Please note, as long as you're accessing the app outside of your approved crypto state, you'll continue to receive the verification prompts.

That being said, can you also confirm for how long you're planning to reside abroad?

I'll be on the lookout for your response!

So not only they have reiterated that they won't let me buy cryptocurrency from abroad, but they also requested my travel plans. That request sounded a bit ominous: my travel plans are my personal private information. But if i did't share it with Robinhood, would they restrict my stocks and options trading activity? Would they restrict transfers of my funds out of my account? I asked that, and they responded that I am still allowed to trade stocks from abroad, but if I am found to be in Crimea or Cuba, my account would be restricted. They didn't answer whether they would limit my ability to transfer my funds out.

In summary: Robinhood interprets the regulations on cryptocurrency such that crypto ought to be locked down more than fiat, equities or bonds. You are allowed to buy Euros in Spain, but according do them, I am not allowed to buy Bitcoin when I am out of state. This sort of defeats the intent of crypto. The rule is enforced by their AI, based on your IP and/or GPS location. When you ask for a clarification, they ask for your travel plans. That begs the question, what other penalties they might impose, for your travels?

I talked to my hedge fund manager friend from New York. He said that I must be pretty naive to buy crypto via Robinhood.