- Digital banking app Revolut is discontinuing cryptocurrency trading services in the US due to increased regulatory pressure on the emerging crypto industry.
- Starting from September 2nd, Revolut will stop allowing its US customers to purchase cryptocurrencies, with full access to crypto holdings being cut off a month later.
- Revolut’s decision was prompted by the US Securities and Exchange Commission’s (SEC) lawsuits against major crypto exchanges, leading to the suspension of trading for certain altcoins like Solana, Cardano, and Polygon on the platform.
Revolut, the popular digital banking app, is saying goodbye to the world of cryptocurrencies in the United States. This move comes as US regulators are cracking down on the crypto industry, and Revolut is feeling the pressure.
Starting September 2nd, Revolut, valued at a whopping $33 billion, will stop allowing its customers in the US to buy cryptocurrencies. And just a month later, they’re going a step further and completely shutting down access to any crypto holdings.
The crypto world has been getting a lot of heat from regulators in the US, mainly due to some unfortunate incidents like bankruptcies and scandals. The US Securities and Exchange Commission (SEC) has been going after big players like Coinbase and Binance with lawsuits. This resulted in Revolut suspending trading for a few specific cryptocurrencies, including Solana, Cardano, and Polygon, back in July. The SEC had flagged these as unregistered securities, so trading was put on hold.
Adding to the commotion, there are recent reports that the SEC even asked Coinbase to stop trading all crypto assets except for Bitcoin. This has certainly cast a cloud of uncertainty over the US crypto market.
Revolut explained that their decision to pull the plug on crypto services in the US was a response to the ever-changing regulatory landscape and the uncertainties surrounding cryptocurrencies in the country. They worked in tandem with their US banking partner to come to this conclusion.
The company, based in London, made it clear that only a very small fraction less than 1% of their global customer base will be affected by this move.