Renowned neobank and fintech company Revolut today communicated to its US-based customers that it will be suspending their access to its crypto services. In a statement, the UK-based digital bank said its decision to suspend operations was compelled by the lack of regulatory clarity in the market.
The two-phase suspension process will see buying crypto tokens on the platform disabled from Sept 2. Selling, holding and general access to the platform will then be deactivated by Oct 3, the bank conveyed to local clients. Revolut implied that its exit from the US market isn’t permanent and that it hopes to return in future.
“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we have taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the US,” a spokesperson told Reuters.
The US Securities and Exchange Commission (SEC) has, in recent months, intensified scrutiny on crypto companies whilst taking action against those it deems non-compliant with industry regulations. The agency announced successive lawsuits against Binance and Coinbase in June for similar allegations of offering unregistered securities. The commission also ruled that a dozen crypto tokens, including Cardano (ADA), Solana (SOL) and Polygon (MATIC), are securities.
Following the SEC determination, several trading platforms including Revolut, Robinhood, eToro and Bakkt, delisted the featured tokens. The fintech company asked US holders of ADA, MATIC and SOL tokens to sell them before Sept 18 or see their holdings liquidated on Oct 3.
The post Revolut to Phase Out US Operations, Cites Regulatory Uncertainty appeared first on Securities.io.
