Revolut's Crypto Retreat: Suspending Services for U.S. Customers
UK fintech company Revolut is stopping its crypto services for U.S. customers due to unclear rules and changes in the crypto market.
Revolut, a UK-based digital bank, has decided to stop its cryptocurrency services for customers in the U.S. This change, driven by unclear rules and changes in the U.S. crypto market, will start from September 2, 2023.
Revolut's Decision to Suspend Crypto Services
Revolut has decided to stop its crypto services in the U.S. because of changes in the rules and the uncertain future of the crypto market in the country. Starting September 2, 2023, U.S. customers won't be able to buy cryptocurrencies on Revolut. Then, from October 3, 2023, U.S. customers won't be able to use Revolut for anything related to cryptocurrencies.
U.S. customers who have been using Revolut to buy, sell, or keep cryptocurrencies will be affected by this change. From October 3, 2023, any cryptocurrencies they still have on Revolut will be sold at the current market prices. This change will affect less than 1% of Revolut's customers worldwide, showing that the company has a small presence in the U.S. crypto market.
The rules about cryptocurrencies have played a big part in Revolut's decision. The SEC, a U.S. government agency, believes that most cryptocurrencies are securities, which means they have to follow specific rules to protect investors. This view has led to more checks on crypto platforms and services, causing companies like Revolut to rethink their operations in the U.S.
Revolut's decision to stop its crypto services in the U.S. shows the problems the crypto industry is facing as the government checks on it more. Other companies, including GameStop and Robinhood, have also changed their crypto services because of unclear rules. These changes show the need for clear and consistent rules for cryptocurrencies.
Despite the current problems, Revolut has said it wants to find other ways to offer crypto products in the U.S. This suggests that the company, and others in the industry, are looking for ways to work within the rules and keep offering crypto services to customers.