Revolut to Adjust UK Crypto Offerings as New Regulation Looms

Revolut, a fintech firm and digital bank has announced plans to suspend certain crypto services from UK customers in line with the incoming new regulation for digital assets in the region according to reports.

Revolut Operating in Line With FCA Demands

The digital bank is registered with the Financial Conduct Authority (FCA), the main digital asset regulator in the UK. It made this move in September 2022 to gain legal authorization to offer its crypto products in the UK and all was going well until FTX crashed in November of the same year. Since then, the FCA has chosen to intensify its scrutiny of crypto-based businesses and their activities.

A number of structures have been put in place to ensure that the operations of crypto ventures are highly regulated. A few weeks ago, the Bank Of England and the FCA presented a statement plan to step up on the regulation of stablecoins that pose a significant threat to the financial system within the country. The regulatory framework will be launched by the beginning of 2024.

Similarly, there is a proposed rule that mandates all market participants to secure appropriate license before providing their crypto services to customers in the UK. 

Crypto advertising frameworks have also been issued to guide businesses and financial influencers, stylishly referred to as finfluencers. According to the FCA, these firms may receive time until January 8, 2024, “to introduce features that require greater technical development.”

UK is Intensifying Crypto Regulations

The nation is putting these crypto regulatory provisions in place to enhance the safety of investors and promote transparency within the crypto industry. Ultimately, this is to prevent a recurrence of FTX-like collapse. 

Non-compliant crypto-businesses are now under the radar of the FCA and this prompted Revolut to decide to suspend its clients’ ability to buy crypto, starting on January 3, 2024.

Revolut plans to take time out to align its crypto business with all of the regulatory framework established by the FCA, especially, the “back end” Direct Offer Financial Promotion (DOFP) rules, which will come into effect as from Jan. 8, 2024. 

Noteworthy, the digital bank halted its crypto trading services in the United States a few months ago.