Key takeaways:
- Revolut responds to FCA regulations, temporarily halting crypto for UK businesses.
- Suspension of specific crypto services begins on January 3.
Revolut, a prominent fintech platform, is set to suspend certain cryptocurrency services for its UK business customers starting January 3, 2024.
The decision comes in response to a broader crackdown on cryptocurrency advertising in the UK and anticipates the enforcement of new rules by the Financial Conduct Authority (FCA) on January 8.
According to an email, the temporary pause will specifically impact Revolut’s UK business clients, with other customer segments remaining unaffected by the change.
The FCA’s upcoming regulations aim to establish crypto investment requirements, emphasizing an enhanced customer journey and additional protection for both new and existing investors in crypto assets.
Despite the temporary suspension of certain services, customers in the UK will still retain the ability to hold and sell cryptocurrencies. City A.M. initially reported the development on Monday, citing details from the aforementioned email. In a statement, Revolut explained:
‘The objective of these requirements is to improve the customer experience and offer added protection to both new and existing investors in the realm of crypto assets.’
‘Consequently, we must adapt our current Business crypto offering to ensure full compliance with these new requirements.’
This move by Revolut mirrors a similar adjustment made earlier in the United States, where the fintech company temporarily halted its crypto activities due to regulatory uncertainties. Such strategic decisions reflect Revolut’s commitment to navigating the intricate regulatory landscapes across different regions.
In essence, Revolut’s decision to temporarily suspend crypto purchases for its UK business clients aligns with its proactive stance toward adapting to regulatory changes.
As the FCA’s new rules come into effect, Revolut underscores its commitment to compliance and customer protection—a broader trend observed as financial institutions continually adjust their strategies to meet evolving regulatory standards.
This action is in line with an overarching pattern in the cryptocurrency sector, where numerous companies, including Bybit, PayPal, and Luno, have adapted their services or exited the U.K. market to conform to the regulatory framework established by the FCA.
These measures are designed to strengthen consumer protection by implementing safeguards, including the introduction of cooling-off periods and risk warnings.
