In response to the Financial Conduct Authority’s (FCA) upcoming regulatory changes for crypto assets in the UK, Revolut has announced that it is temporarily suspending certain cryptocurrency services for its business customers. This decision will come into force as of January 3, 2024 and aims to ensure compliance with the new rules by reflecting the dynamic environment of the crypto market and the need for companies to adapt quickly.
Revolut stopped cryptocurrency services
As of January 3, 2024, Revolut Business customers in the UK will no longer be able to purchase cryptocurrencies on the platform. Despite this temporary suspension, institutional clients can maintain and sell their existing crypto assets. The move is a response to the FCA’s recent announcement of new rules for crypto assets, highlighting the need for caution in promoting the asset class to clients. The UK has recorded a steady increase in crypto adoption, ranking fourteenth in Chainalysis’ global crypto adoption index.
Revolut’s decision to pause its crypto services is in line with the FCA’s requirement that firms offering such services be careful when promoting crypto assets. The FCA’s new rules, published in October, also ban incentives such as 24-hour “referral bonus” bonuses. These changes show that the regulatory authority is becoming increasingly active in the cryptocurrency space. With the new law coming into force next year, Revolut has temporarily halted its crypto services to comply with these new requirements.
Revolut’s new strategy
Revolut attributes the temporary suspension to its strategy to prepare for advertising rules scheduled to be implemented on January 8, 2024. The FCA’s strengthened advertising laws for cryptoassets require companies to include a “cooling off period” for first-time investors and ensure transparent communication of risks associated with cryptoassets. Revolut is not the only company facing the impact of these regulatory changes. Other industry players, including Bybit, Binance, Marinade Finance and even PayPal, have adjusted their services in response to the evolving regulatory environment in the UK.
cryptokoin.com As we have reported, Bybit’s exit from the UK market, Binance’s suspension of new user onboarding and Marinade Finance’s ban on UK residents highlight the broad impact of the FCA’s regulatory actions across the industry. Revolut’s response to the FCA’s regulatory changes underlines the aim of companies in the crypto market to adapt quickly to evolving regulatory environments. The UK crypto market is witnessing a transformation spurred by regulatory adjustments. Meanwhile, industry players are having to align their services with new requirements to ensure compliance and maintain investor confidence. Time will tell how Revolut or other companies will act regarding cryptocurrency trading in the future.
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