Breaking: British Fintech App Revolut Stops Crypto Trading Services for US Customers
Amid major uncertainty in the US crypto regulatory landscape, British banking app Revolut has decided to stop offering crypto trading services to US customers starting September 2023.
In an email to Decrypt on Friday, August 4, a Revolut spokesperson noted that the London-based fintech firm shall disallow US users to buy cryptocurrencies from its app, from September 2 onwards. 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”.
Revolut added that the decision would impact less than 1% of the company’s crypto customers. The London-based fintech firm said that it’s pursuing other alternative options to provide access to crypto products and would be open to serving US customers in the future.
Revolut’s Exit Highlights Poor US Regulatory Landscape
In the past few months, there has been a notable increase in regulatory actions against cryptocurrencies in the US. Following a year of significant scandals and project failures, authorities like the US SEC and the CFTC have filed multiple lawsuits against crypto companies accused of violating regulations. Additionally, US banking regulators have cautioned traditional financial institutions about the potential risks of engaging with the crypto sector.
Earlier this year, Revolut removed several cryptocurrencies from trading in the US after the SEC classified them as unregistered securities. The company is, however, exploring business opportunities in crypto-friendly jurisdictions. Revolut made an entry into the Latin America market in May 2023 floating its crypto products in Brazil.
While the US has been a laggard in forming a clear regulatory framework, Asian regulators have taken the lead. Hong Kong is once again offering strong incentives for Web3 and crypto firms to set up bases in the region.
In June 2023, Hong Kong passed its mandatory crypto framework while Japan’s stablecoin law became operative. On the other South Korea has also approved its standalone digital-asset bill.
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