• Revolut is suspending its crypto services for US customers due to regulatory uncertainty.
• This comes after the SEC classified several cryptocurrencies as unregistered securities earlier this year.
• Revolut has partnered with Metropolitan Commercial Bank and Bakkt Holdings Inc.’s Apex Crypto unit to provide crypto services.
Revolut Suspending Crypto Services For US Customers
British neobank Revolut has announced plans to halt its crypto services for US customers, citing the market uncertainty and changes in the local regulatory landscape in the country. The digital bank will suspend US users’ ability to buy cryptocurrencies via its app from September 2, a Revolut spokesperson told Bloomberg. All access to cryptocurrency holdings will be completely disabled a month later on the app.
Heightened Regulatory Scrutiny In The U.S.
The crypto industry in the United States has witnessed an escalation in regulatory clampdowns recently following a year marred by noteworthy scandals and the collapse of various projects. Regulatory bodies like the SEC and CFTC have filed numerous lawsuits against crypto companies accusing them of violating regulations while traditional financial institutions have been cautioned about potential risks associated with engaging with the sector.
Revolut Had Already Delisted Numerous Cryptocurrencies
Revolut had already removed several cryptocurrencies, including Cardano (ADA), Polygon (Matic) and Solana (SOL) from trading in the US prior to this announcement. As of July, Revolut offered 30 cryptocurrencies but was planning to delist more cryptocurrencies in September due to their classification as unregistered securities by the SEC earlier this year.
Partnerships With Banks To Provide Crypto Services
Revolut’s partnering bank in the US is Metropolitan Commercial Bank while Bakkt Holdings Inc.’s Apex Crypto unit is responsible for rendering crypto services according to their official website. A spokesperson for Revolut mentioned that they are actively pursuing alternative means of providing these services without compromising user security or experience.
In light of increased regulation surrounding cryptocurrency markets, it appears that many companies are taking steps towards ensuring compliance with current regulations while still providing access to cryptos where possible without risking legal repercussions or user security/experience issues.