UK fintech challenger bank Revolut terminates US crypto services: Regulatory environment poses challenges
According to a report by The Block, UK fintech bank Revolut will no longer offer cryptocurrency services to US users, citing challenges in the regulatory environment in the United States.
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The UK fintech startup bank Revolut launched bitcoin buying, holding, and transferring services in July 2017, and entered the US market in March 2020. Previously, they used bitcoin to pay rent for office space at WeWork to save on international transfer fees, showcasing their confidence in the blockchain industry and the potential of using cryptocurrencies as a payment method.
However, with increasing regulatory scrutiny in the US, Revolut will be exiting the US crypto market. Starting from September 2, US customers will no longer be able to purchase cryptocurrencies on their platform, and must sell any held cryptocurrencies by October 2. From October 3 onwards, the trading platform will be completely shut down, meaning users will not be able to buy, sell, or hold any cryptocurrencies. If US users do not sell their held cryptocurrencies by then, Revolut will liquidate all remaining balances and convert them to fiat currency.
A spokesperson for Revolut stated:
Due to the evolving regulatory environment in the US and the uncertainty in the cryptocurrency market, we have made the difficult decision in partnership with our US banking partner Metropolitan Commercial Bank to temporarily suspend Revolut's cryptocurrency services in the US.
Revolut emphasized that this decision will not affect their customers outside the US and the impact on their global cryptocurrency customers is less than 1%.