Neobank Revolut, which has gained popularity for its cryptocurrency-friendly trading features, has made the difficult decision to wrap up its crypto services in the United States. This move comes as a result of ongoing regulatory uncertainty surrounding cryptocurrencies in the country. Having recently announced a partial delisting of certain digital assets from its platform, Revolut has now decided to suspend all crypto services for U.S. users.
In a statement to Cointelegraph on August 4th, Revolut confirmed that it will be working with its U.S. banking partner to gradually suspend access to cryptocurrencies through its platform. The process will commence on September 2nd, and all crypto services will be completely discontinued on October 3rd. A spokesperson for the online bank explained, “The access to cryptocurrencies through Revolut will be fully disabled and US customers will no longer be able to buy, sell, or hold any cryptocurrencies.”
Revolut assures its customers that the decision to withdraw from the U.S. market will only impact a small percentage of its global crypto users – specifically, “just 1%.” Furthermore, the bank makes it clear that it will continue to operate its non-crypto business in the United States, ensuring that its customers can still access the other services provided by the platform.
While Revolut acknowledges that this decision may disappoint its U.S. crypto customers, it emphasizes that the process will be communicated transparently and effectively. Customers affected by the suspension will receive detailed information via email and will have access to a dedicated support team to address any concerns or queries they may have through the in-app chat.
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This move by Revolut follows its earlier announcement of delisting certain cryptocurrencies in late June, including Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL. The company had planned to proceed with these delistings in September and, as of late July, supported a total of approximately 30 cryptocurrencies in the United States.
Revolut is not the only major cryptocurrency service provider facing challenges in servicing its U.S. customers. Crypto.com, a prominent global crypto exchange, announced the suspension of services to institutional clients in the U.S. in mid-June. These events highlight the complexities and uncertainties surrounding the regulatory landscape for cryptocurrencies in the country.
As the crypto industry continues to evolve, regulatory agencies are grappling with the task of creating frameworks that balance innovation and investor protection. The Securities and Exchange Commission (SEC) is at the forefront of this regulatory landscape, with Chair Gary Gensler leading the charge. Gensler’s views and decisions on crypto regulation are highly influential, and he is regarded as having the final say on many key matters in the industry.
The uncertain regulatory environment, coupled with the challenges of complying with evolving rules and requirements, have forced Revolut to make the difficult decision to withdraw its crypto services from the U.S. market. While this may disappoint some customers, Revolut is committed to providing excellent support and maintaining its non-crypto banking services in the country.
It remains to be seen how the regulatory landscape will unfold in the United States and around the world. As industry players navigate this complex terrain, it is essential for businesses to prioritize compliance, customer protection, and transparent communication to ensure a sustainable and trustworthy crypto ecosystem.
