Digital banking pioneer Revolut has officially announced the closure of its cryptocurrency trading platform in the United States, citing a turbulent regulatory landscape as the driving force behind this decision. The firm’s decision to exit the U.S. crypto market was confirmed by Revolut to CoinDesk in a recent statement.
Starting from September 2, 2023, U.S. customers will be barred from purchasing cryptocurrencies through the Revolut platform. However, a brief grace period of 30 days will be provided during which customers can still conduct sell transactions before complete access is disabled, as detailed in a letter dispatched to local clients by the bank.
Revolut, in partnership with a local banking institution, explained that the cessation of operations was a “difficult decision” made due to the dynamic and ever-changing regulatory landscape surrounding cryptocurrencies in the United States. The statement also alluded to uncertainties prevailing within the U.S. crypto market as a contributing factor.
In response to the development, a spokesperson for Revolut expressed empathy for any potential disappointment caused by this decision. They emphasized that this suspension of services will not impact Revolut users residing outside the United States in any way. Furthermore, the spokesperson highlighted that this move would affect less than 1% of Revolut’s global customer base who engage in cryptocurrency-related activities.
Customers outside the United States will remain unaffected by the platform’s closure, and they are encouraged to continue enjoying the diverse array of crypto services offered by Revolut. The spokesperson conveyed this message via an email statement, reassuring global customers of the bank’s commitment to providing seamless and uninterrupted crypto services across other international markets.
Revolut Faces Regulatory Challenges as U.S. Authorities Tighten Grip on Crypto
The company finds itself grappling with regulatory hurdles as it offers an array of crypto services, including trading and staking, across various jurisdictions, primarily within Europe.
The intensified regulatory focus on the crypto sector, spearheaded by the vigilant oversight of the Securities and Exchange Commission (SEC), has culminated in a crackdown on cryptocurrency activities. Key targets of this regulatory campaign encompass major exchange platforms such as Coinbase (COIN) and Binance, alongside an assortment of individual tokens like Solana’s SOL, Cardano’s ADA, and Polygon’s MATIC. Allegations of federal law violations have been levied against these entities.
The legal spotlight recently turned towards a lawsuit filed by the SEC, wherein the tokens under scrutiny were deemed unregistered securities. The aftermath of this classification has been a swift withdrawal of support for these tokens on U.S. platforms, witnessed across several industry players. Notable platforms, including Robinhood and Revolut, have openly declared their discontinuation of token support within the United States.
As the dust settles from these regulatory tremors, Revolut is refusing to bow out of the U.S. crypto market entirely. A spokesperson for the banking institution has affirmed their proactive approach, indicating that Revolut remains steadfastly committed to discovering alternative avenues for facilitating crypto product access. This ambitious pursuit reflects their determination to eventually rekindle their crypto offerings within the U.S. market.