In a surprising move, prominent fintech giant Revolut has taken decisive action amidst the ever-shifting crypto regulatory landscape in the United States. Effective September 2, 2023, the firm has decided to suspend its cryptocurrency services for U.S. customers, citing increasing uncertainties in the market.
The company’s move comes as a response to the mounting challenges posed by the complex and evolving regulations surrounding digital currencies in the country. As a result of the suspension, customers within the US will no longer be able to place orders for digital assets through the platform.
Adding to the disruption, Revolut is planning to impose a comprehensive restriction starting October 3, 2023. This means U.S. customers will face a complete loss of access to digital assets via this popular platform. All transactions, including buying, selling, and holding digital assets, will be strictly off-limits for users within the United States. A spokesperson from Revolut elaborated on the rationale for this choice by expressing,
“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the U.S.,” the spokesperson said. “This decision has not been taken lightly, and we understand the disappointment this may cause.”
Crypto Regulation Forces Revolut Closure
The decision was not taken lightly, as the company conveyed its regrets to all its customers through email, stating, “We regret to inform you that we’ll be closing our cryptocurrency platform in the US.”
The regulatory complexities surrounding the crypto market in the US have been a driving force behind this major fintech player’s choices. Authorities, such as the Securities and Exchange Commission (SEC), have been scrutinizing digital assets, considering many as securities, which subject them to investor protection regulations. This critical stance has led to legal confrontations with prominent crypto exchanges, generating uncertainties and impacting Revolut’s services.
To address these challenges, the company swiftly delisted three tokens – Cardano (ADA), Solana (SOL), and Polygon (MATIC) – that were classified as securities by the SEC. This strategic move was aimed at aligning with regulatory guidelines and may have played a role in the suspension of crypto services in the US.
While US customers are affected by this decision, Revolut assures its global customers, particularly in Europe, that its digital currency services will continue as usual. Moreover, it remains committed to expanding and enhancing its crypto offerings in the European market.
Notably, Revolut recently introduced a staking program in select European countries, allowing customers to earn digital currency rewards. This move underscored the company’s dedication to strengthening its position in the European crypto landscape.