The UK-based fintech company Revolut has announced the termination of its cryptocurrency services in the US.
The UK-based fintech company Revolut has announced the termination of its cryptocurrency services in the US.
This decision is scheduled to go into effect on September 2, 2023, and it was motivated by the changing regulatory environment and ambiguities surrounding the American crypto market.
U.S. customers won’t be able to place buy orders for cryptocurrencies on the Revolut platform after this date. A Revolut spokesperson told Decrypt that the company is “actively seeking alternative means of providing access to crypto products and we hope to offer crypto in the US again in the future.”
A more extensive restriction will be put in place as a result of this modification beginning on October 3, 2023. At this time, all U.S. customers’ access to cryptocurrencies through Revolut will be completely disabled. As a result, they won’t be able to acquire, trade, or hold any cryptocurrencies anymore.
The spokesperson stated, “Due to the changing regulatory landscape and the uncertainties surrounding the US crypto market, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the U.S. “We recognise the disappointment this may bring about, and this decision has not been made lightly.”
Revolut sent out an email to all of its crypto customers in the US informing them of this decision.
A copy of the email obtained by Decrypt stated, “We regret to inform you that we will be closing our cryptocurrency platform in the US.”
The regulatory environment pertaining to cryptocurrencies has been a major consideration in this choice.
According to the SEC, the majority of cryptocurrencies are securities and must follow regulations pertaining to investor protection. When the SEC sued cryptocurrency exchanges Coinbase and Binance for failing to register a number of cryptocurrencies in early June, this effort intensified. The claims are refuted by both businesses.
Revolut quickly moved to delist Cardano (ADA), Solana (SOL), and Polygon after the SEC’s announcements (MATIC). Revolut’s decision was probably influenced by the regulator’s classification of these three tokens as securities.
The platform declared goals for finishing the delisting procedure by September 18.
The majority of cryptocurrency businesses argue that the SEC lacks authority, and they have been urging Congress to pass legislation that would make it clear that cryptocurrencies are more like commodities than securities.
Revolut’s activities outside the US are unaffected by this choice, though. According to a Revolut spokesperson, users in all other markets are welcome to sign up and take advantage of their crypto services.
Revolut’s cryptocurrency services are not only active but also growing outside of the United States, especially in Europe.
Revolut introduced a staking programme in February that allows users in Great Britain and about 30 other European nations to earn cryptocurrency rewards.