- Less than one percent of Revolut’s crypto clients would be affected, the firm said.
- Regulatory scrutiny against cryptocurrencies has increased dramatically in the U.S.
Revolut has decided to discontinue offering cryptocurrency trading services to US users as of September 2023. This is due to regulatory uncertainties in the US. On Friday, August 4th, a Revolut representative stated that from September 2nd, the company will no longer enable customers in the United States to purchase cryptocurrencies using its app.
The spokesperson said:
“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. This decision has not been taken lightly, and we understand the disappointment this may cause”.
Increased Regulatory Scrutiny
Less than one percent of Revolut’s crypto clients would be affected, the firm said. The London-based fintech company has said that it is exploring various avenues to provide crypto product access. And is considering expanding its services to the United States in the near future.
In the United States, regulatory scrutiny against cryptocurrencies has increased dramatically over the last several months. Authorities including the US SEC and the CFTC have filed various cases against crypto businesses suspected of breaking rules after a year of major scandals and bankruptcies.
In addition, banking authorities in the United States have issued a warning to conventional financial institutions about the dangers of dealing with the cryptocurrency industry.
After the SEC deemed some cryptocurrencies to be unregistered securities earlier this year, Revolut temporarily suspended trading in certain currencies in the United States. However, it is looking at doing business in places where cryptocurrencies are legal.
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