British digital banking app, Revolut Ltd., has disclosed its plans to cease providing cryptocurrency trading services to its customers residing in the United States. This change in operation is scheduled to take effect from September 2, 2023, with the full suspension of access to crypto holdings anticipated to be implemented a month later. According to Revolut, the decision is driven by the current regulatory ambiguities and market uncertainties that pervade the US crypto market.
This London-based fintech firm has been collaborating with Metropolitan Commercial Bank as its banking partner in the United States. This announcement comes amidst a broader regulatory crackdown on cryptocurrencies in the United States. Notably, the company stressed that this decision impacts less than 1% of Revolut’s global crypto customers.
A reaction to regulatory shifts
In recent months, the US regulatory landscape has been characterized by an uptick in legal actions initiated by regulatory bodies, such as the US Securities and Exchange Commission and the Commodity Futures Trading Commission. These agencies have taken legal actions against crypto firms, alleging rule violations, while banking regulators have cautioned traditional finance institutions about the inherent risks of engaging with the crypto sector.
Consequently, Revolut had already withdrawn several cryptocurrencies from trading within the United States, including Cardano (ADA), Polygon (MATIC), and Solana (SOL). The decision was prompted by the SEC’s classification of these digital assets as unregistered securities. Nevertheless, Revolut plans to continue its non-crypto business operations within the United States.
Meanwhile, Bakkt Holdings Inc.’s Apex Crypto unit, as disclosed on Revolut’s website, provides the company’s cryptocurrency services.
Revolut’s next steps
The company has described departure from the US crypto market as difficult. In a statement, Revolut expressed understanding of the potential disappointment this might cause their customers. To ease the transition, the company has promised to communicate all necessary information to its US-based crypto customers through email. Furthermore, Revolut has pledged the continued availability of its dedicated support team to address any arising concerns and questions via its in-app chat.
While the company has confirmed the termination of its cryptocurrency services for US customers, Revolut has reiterated its commitment to continue its non-crypto business in the country.