Revolut, the prominent UK-based firm, has made a significant move in response to regulatory challenges and uncertainties surrounding the cryptocurrency market in the United States. The company suspended its cryptocurrency services for U.S. customers starting September 2, 2023.
Revolut’s decision to suspend its cryptocurrency services in the U.S. is primarily influenced by the ever-changing regulatory landscape and uncertainties surrounding the crypto market in the country. As a result, starting September 2, the U.S Revolut platform will no longer allow users to make buy orders for cryptocurrency.
In addition to the initial suspension, a more comprehensive restriction is set to take effect on October 3, 2023. From then on, U.S. customers will lose complete access to cryptocurrencies through the firm. They cannot buy, sell, or hold any cryptocurrencies via the platform. A representative from Revolut explained the reasoning behind this decision by stating,
“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 U.S.,” the spokesperson said. “This decision has not been taken lightly, and we understand the disappointment this may cause.”
Revolut has promptly informed all its crypto customers in the U.S. about this decision. An email has been sent to notify them of the impending suspension of crypto services. per the report, “We regret to inform you that we’ll be closing our cryptocurrency platform in the US,”
SEC’s Influence On Revolut’s Decision
The regulatory context surrounding cryptocurrencies in the US has played a significant role in shaping the firm’s choice. The Securities and Exchange Commission (SEC) asserts that most cryptocurrencies should be considered securities, thus subject to investor protection rules. This stance was evident when the SEC filed a lawsuit against significant crypto exchanges Coinbase and Binance, accusing them of failing to register specific cryptocurrencies as securities. Both companies have refuted the allegations.
In response to the SEC’s statements, the firm promptly acted by opting to delist three tokens – Cardano (ADA), Solana (SOL), and Polygon (MATIC) – that the regulator classified as securities. This decision likely played a role in Revolut’s choice to halt crypto services in the US. The platform plans to finish the delisting procedure by September 18.
Although the suspension has a notable impact on US customers, Revolut’s cryptocurrency services will remain uninterrupted in other global regions, with a particular emphasis on Europe. Outside the US, Revolut’s crypto offerings continue to operate actively and are expanding to cater to a broader customer base.
Revolut introduced a staking program in February, offering customers in Great Britain and approximately 30 European countries the opportunity to earn cryptocurrency rewards. This program demonstrates the company’s commitment to growing its crypto services in the European market.
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