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Revolut, the UK-based fintech firm, has announced the suspension of its cryptocurrency services in the United States.
This decision, influenced by the evolving regulatory landscape and uncertainties surrounding the crypto market in the U.S., is set to take effect from September 2, 2023.
From this date, U.S. customers will no longer be able to place buy orders for cryptocurrencies on the Revolut platform. "Revolut is actively pursuing alternative means of providing access to crypto products and we hope to offer crypto in the US again in the future," a Revolut spokesperson told Decrypt.
This change will be followed by a more comprehensive restriction starting from October 3, 2023. At this point, access to cryptocurrencies through Revolut will be fully disabled for U.S. customers. As a result, they will no longer be able to buy, sell, or hold any cryptocurrencies.
“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the U.S.,” the spokesperson said. “This decision has not been taken lightly, and we understand the disappointment this may cause.”
All crypto customers in the U.S. received an email from Revolut informing them of this decision.
“We regret to inform you that we’ll be closing our cryptocurrency platform in the US,” read a copy of the email seen by Decrypt.
US crypto ecosystem under fire
The regulatory context surrounding cryptocurrencies has been a significant factor in this decision.
The SEC argues that a majority of cryptocurrencies are securities and, therefore, subject to investor protection rules. This effort escalated in early June when the SEC sued crypto exchanges Coinbase and Binance for failing to register several cryptocurrencies. Both companies deny the allegations.
Following the SEC's declarations, Revolut swiftly moved to delist Cardano (ADA), Solana (SOL), and Polygon (MATIC). These three tokens were labeled as securities by the regulator, likely prompting Revolut's decision.
The platform announced plans to complete the delisting process by September 18.
Most crypto companies dispute the SEC's jurisdiction and have been lobbying Congress in recent months to write laws clarifying that cryptocurrencies are more akin to commodities than securities.
However, this decision does not affect Revolut's operations outside the US.
“Revolut customers in all other markets can continue to sign up and enjoy using our crypto services,” Revolut’s spokesperson told Decrypt.
Beyond the U.S., Revolut's crypto services are not only active but are also expanding in other parts of the world, particularly in Europe.
In February, Revolut launched a staking program, giving customers in Great Britain and around 30 European countries the chance to earn cryptocurrency rewards.