Revolut, the renowned UK-based fintech firm, has today announced its decision to suspend cryptocurrency services for customers in the United States. The move comes as a response to the rapidly evolving regulatory environment and uncertainties surrounding the cryptocurrency market in the US. The suspension is scheduled to take effect from September 2, 2023.
Starting from September 2, US customers will no longer be able to place buy orders for cryptocurrencies on the Revolut platform. Subsequently, from October 3, 2023, access to cryptocurrencies through Revolut will be entirely disabled for US customers, meaning they will no longer have the ability to buy, sell, or hold any digital assets.
A Revolut spokesperson told BlockchainReporter: “From 2 September 2023, customers in the US will no longer be able to place buy orders for cryptocurrencies on Revolut. From 3 October 2023, access to cryptocurrencies through Revolut will be fully disabled and US customers will no longer be able to buy, sell, or hold any cryptocurrencies.”
Growing Regulatory Concerns
The primary driver behind this drastic measure is the complex regulatory context surrounding cryptocurrencies in the US. The Securities and Exchange Commission (SEC) has recently taken a more stringent stance on the classification of cryptocurrencies, asserting that many of them should be treated as securities and thus be subject to investor protection regulations.
In early June, the SEC filed lawsuits against prominent crypto exchanges Coinbase and Binance, alleging that they had failed to register several cryptocurrencies. Both exchanges have firmly denied these allegations. In response to the SEC’s actions, Revolut promptly decided to delist three cryptocurrencies – Cardano (ADA), Solana (SOL), and Polygon (MATIC). The SEC had classified these tokens as securities, likely influencing Revolut’s decision to suspend its US crypto operations. The delisting process for Cardano, Solana, and Polygon will be completed by September 18.
A majority of crypto companies have been disputing the SEC’s jurisdiction and have actively lobbied Congress to establish clearer laws that distinguish cryptocurrencies as commodities rather than securities. However, Revolut’s move to suspend its US crypto services indicates the severity of the regulatory concerns within the country.
The Revolut spokesperson stated: “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 US.”
The decision to suspend US crypto services has not been taken lightly, and Revolut acknowledges the disappointment it may cause for its US customers. However, it’s essential to note that this suspension will not affect Revolut users outside of the US, and the company’s crypto services will continue to operate in other markets. According to Revolut’s statement, the suspension only affects less than 1% of its global crypto customers. The company is committed to providing support and addressing any concerns or questions from its US crypto customers through the in-app chat function.
Overall, Revolut’s decision to shutter its cryptocurrency operations in the US reflects the increasing challenges posed by the regulatory environment in the country. As the crypto industry continues to face regulatory scrutiny, companies like Revolut are forced to reassess their strategies to comply with the evolving legal landscape.
