London-based fintech company Revolut Ltd. has terminated crypto trading services for its U.S.-based customers. The suspension will begin from September 2, 2023, with the ability to buy cryptocurrencies through the app, and access to cryptocurrency holdings will be completely disabled by October 3, a spokesperson from Revolut confirmed. The decision, made in partnership with U.S. banking partner Metropolitan Commercial Bank, has been attributed to changes in local regulations and market uncertainty.
The regulatory landscape surrounding cryptocurrencies in the U.S. has become increasingly stringent. Actions by authorities like the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have led to numerous lawsuits against crypto firms accused of violating rules. U.S. banking regulators have warned traditional financial firms about the risks associated with the crypto sector.
Revolut, which holds a Lithuanian banking license, had previously delisted certain cryptocurrencies for trading in the U.S. following their labeling as unregistered securities by the SEC. The spokesperson emphasized that the decision would impact less than 1% of Revolut’s global crypto customers.
Continuing non-crypto business and global impact
The discontinuation of crypto services in the U.S. doesn’t mark a complete withdrawal of Revolut from the American market. The company has assured that it will continue to operate its non-crypto business in the country. The spokesperson for Revolut has expressed understanding for potential disappointment among users and has emphasized that the decision was not taken lightly.
The announcement follows a trend of crypto service struggles in the U.S. Earlier, in late June, Revolut US announced the delisting of cryptocurrencies like Cardano (ADA), Polygon (MATIC), and Solana (SOL), and planned to proceed with these delistings in September. Other major global crypto exchanges like Crypto.com have suspended services to certain clients in the U.S.
The decision by Revolut underscores the wider impact of the changing regulatory climate surrounding cryptocurrencies in the United States. While the immediate impact on Revolut’s customer base is minimal, the broader implications for the crypto industry in the U.S. and international companies operating within the jurisdiction remain to be seen.
The company has stated that detailed information regarding the suspension will be communicated to U.S. crypto customers via email, with a dedicated support team ready to address concerns and questions via in-app chat.