Financial technology firm Revolut is set to suspend cryptocurrency purchases for its business clients in the United Kingdom. This move is in response to the new rules on crypto promotion by the UK’s Financial Conduct Authority (FCA), scheduled to be implemented in January 2024.
Starting from January 3, 2024, Revolut’s UK business customers will only be able to sell and hold crypto, with purchases via Revolut Business being temporarily halted. The decision is aimed at aligning with the FCA’s upcoming regulations and enhancing customer protection.
Revolut, having received approval from the FCA in September to offer cryptocurrency services to UK customers, is now adapting its business crypto offering to meet the new regulatory requirements. The changes are part of an effort to ensure compliance and provide additional safeguards for investors in crypto assets.
Impact on Revolut’s Business Clients
An email from Revolut states, “These requirements aim to enhance the customer journey and provide additional protection for new and existing investors of crypto assets. As a result, we’ll need to adjust our current Business crypto offering to make sure all of the new requirements are met.”
While the email mentions adjustments for business clients, it does not specify the impact on retail customers, leaving room for speculation regarding the potential effect on this segment of Revolut’s user base.
Regulatory Landscape and Industry Response
This move by Revolut follows the lack of regulatory clarity for crypto, prompting the firm to restrict crypto services in the United States earlier in the year. Similarly, global online payments company Paypal took similar action in the UK, disabling crypto purchases with plans to re-enable functionality in early 2024.
Crypto exchange giant Binance also faced restrictions in the UK, stopping the acceptance of new users after the FCA restricted its local partner from approving crypto promotions.
The FCA remains committed to strict regulatory oversight of the crypto industry, emphasizing consumer protection. The core rules on crypto marketing, effective since October 8, 2023, include a three-month extension for firms to implement technical developments, with the deadline set for January 8, 2024.