- Digital bank Revolut suspends U.S. crypto operations from Oct. 3, citing uncertainties around the U.S. regulatory environment.
- The suspension affects less than 1% of Revolut’s global crypto customers and doesn’t impact users outside the U.S.
Digital banking leader Revolut has announced the suspension of its U.S. crypto operations as of Oct. 3, 2023. The decision comes in light of the ambiguous and rapidly shifting regulatory environment in the United States concerning cryptocurrency.
U.S. Regulatory Climate: A Challenging Landscape
The firm’s statement to CoinDesk confirms that the decision was not made lightly. U.S. customers will lose the ability to buy crypto via Revolut starting Sept. 2, though they can continue to sell for an additional 30-day period before the service is fully disabled. A letter sent to local clients by the bank detailed the decision.
Revolut and its local banking partner determined to halt operations due to an “evolving regulatory environment” and apparent “uncertainties around the crypto market” in the U.S. Recent actions by U.S. regulators, spearheaded by the Securities and Exchange Commission (SEC), have created a tense atmosphere.
Several high-profile targets, including exchange platforms like Coinbase and Binance and individual tokens like Solana’s SOL, Cardano’s ADA, and Polygon’s MATIC, have faced allegations of federal law violations. The SEC’s categorization of these tokens as unregistered securities prompted platforms like Robinhood and Revolut to end support for them on U.S. platforms.
The impact of this suspension is lessened by the fact that it affects fewer than 1% of Revolut’s crypto customers globally. Moreover, it does not affect Revolut users outside the U.S., as the London-headquartered company continues to provide a range of crypto services, including trading and staking, across multiple mainly European jurisdictions.
Revolut’s spokesperson expressed understanding for the disappointment this decision might cause, reassuring that the firm is
“actively pursuing alternative means of providing access to crypto products.”
They further noted the hope that Revolut may be able to offer crypto services in the U.S. once more in the future.
The situation underscores the increasingly complex and uncertain regulatory landscape for crypto businesses in the United States, highlighting the need for clear and stable regulations that balance both innovation and compliance. Revolut’s suspension serves as a significant signpost in the ongoing dialogue about crypto’s place within the legal frameworks of the world’s largest economy.