Global neobank and financial services company, Revolut shocks the US crypto community with news of its decision to discontinue and prohibit cryptocurrency services for its US customers.
Revolut’s US crypto termination decision is a significant setback for US users who use the banking platform to access and manage their cryptocurrency assets. The news could possibly push American customers to manage their cryptocurrency assets on alternative fintech platforms.
“This decision has not been taken lightly, and we understand the disappointment this may cause,” a spokesperson commented. “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 U.S. banking partner, to suspend access to cryptocurrencies through Revolut in the US.”
Revolut’s termination of cryptocurrency services is set to take effect within the next 30 days from September 2, 2023, providing US users sufficient time to liquidate their holdings. The British fintech company has announced that its US users will be duly notified about the termination via email. The Revolut support team will also be made available to address any concerns made by its US crypto customers.
According to reports, Revolut’s US crypto service adjustments will be followed by a more thorough restriction starting from October 3, 2023. Access to cryptocurrencies on the banking platform from this time will be strictly prohibited and discontinued for US customers.
A representative also clarified that the decision to leave the US crypto market would affect only a small fraction of its global crypto customers, constituting about 1% of its total crypto user base. While the news may upset American crypto users, Revolut has assured that it will continue to provide non-crypto business services in the United States.
Revolut previously offered over 80 cryptocurrencies on its platform, allowing users to buy, sell and exchange popular cryptocurrencies like Bitcoin and Ethereum. But recently, its crypto listings were reduced to 30 after delisting several tokens, including Cardano and Solana.
Total market cap sitting at $1.131 trillion | Source: Crypto Total Market Cap on Tradingview.com
US Regulatory Challenges and Market Uncertainties Force Revolut’s Crypto Exit
Revolut’s official announcement is said to have been greatly influenced by the current regulatory hurdles in the US and unsteady conditions enveloping the US crypto market.
Over the past few months, the US crypto market has witnessed evolving regulations and growing scrutiny, raising questions about the future of cryptocurrency adoption in the United States.
The limitations in crypto evolution have gradually impacted fintech companies, and some US-based companies could follow a similar path to Revolut. Renowned cryptocurrency platforms like Crypto.com have already terminated cryptocurrency services in the US due to regulatory challenges.
In June, the United States Securities and Exchange Commission (SEC) sued crypto exchanges Binance and Coinbase, alleging that both platforms facilitated the sale of cryptocurrencies which it believes are unregistered securities.
Featured image from Revolut, chart from Tradingview.com