Revolut Pulls the Plug on Crypto in US, Citing Regulatory Environment

<p>Revolut, a
London-based neobank, plans to wrap up its crypto trading offering to users in
the United States by October 3, CoinDesk reported today (Friday). Users have until September 2 to purchase digital assets on the platform, and another one month to sell their crypto holdings. </p><p>Revolut to
Quit US Crypto Market</p><p>According
to CoinDesk, the challenger bank blamed the “difficult decision” on the
“evolving regulatory environment” in the United States. In recent months, the
Securities and Exchange Commission (SEC) has intensified its crackdown on
“crypto-asset securities” offered by “unregistered” trading platforms such as <a href="https://www.financemagnates.com/cryptocurrency/sec-charges-binance-ceo-over-illegal-exchanges-commingling-of-client-fund/" target="_blank" rel="follow">Binance</a> and <a href="https://www.financemagnates.com/cryptocurrency/after-binance-sec-sues-coinbase-over-illegal-operation-of-crypto-exchange/" target="_blank" rel="follow">Coinbase</a>. </p><p>In <a href="https://www.financemagnates.com/cryptocurrency/court-approves-deal-between-sec-and-binanceus-to-avoid-asset-freeze/" target="_blank" rel="follow">the lawsuit against
Binance</a> filed in
early June, the SEC listed 13 tokens, including Cardano’s ADA, Polygon’s MATIC,
and Solana’s SOL, as unregistered securities. The move forced several platforms including <a href="https://www.financemagnates.com/cryptocurrency/regulatory-uncertainty-forces-revolut-to-delist-3-cryptos/" target="_blank" rel="follow">Revolut</a>, <a href="https://www.financemagnates.com/cryptocurrency/robinhood-delists-tokens-native-to-cardano-solana-and-polygon/" target="_blank" rel="follow">Robinhood</a> and <a href="https://www.financemagnates.com/cryptocurrency/etoro-blocks-us-customers-purchase-of-algo-mana-dash-and-matic/" target="_blank" rel="follow">eToro</a>, to move towards delisting some of the tokens from their platforms. </p><p>Revolut, which suspended the purchase of ADA, MATIC and SOL on its platform, initially gave its US users until September 18 to sell their holdings. With the deadline several weeks away, Revolut has decided to instead shut down its entire crypto services in the country.</p><p>However,
Revolut in a statement shared with CoinDesk noted that its users from other regions are not affected by
the decision. It emphasized that the move will impact less than 1% of
its crypto customers across the world.</p><p>“This
decision has not been taken lightly, and we understand the disappointment this
may cause,” Revolut stated.</p><p>Revolut Grows amidst Challenges </p><p>Revolut's planned exit from the US crypto market comes at a time the fintech company, which recently <a href="https://www.financemagnates.com/fintech/revolut-earned-71m-in-2021-marking-first-annual-profit-in-history/" target="_blank" rel="follow">marked its first full year of profit</a>, is <a href="https://www.financemagnates.com/fintech/revolut-suffers-another-valuation-hit-as-molten-ventures-cuts-stake-by-40/" target="_blank" rel="follow">enduring blows to its valuations</a>. The firm, which began as a cross-border money transfer platform and subsequently expanded into crypto trading, consumer loans, and pet insurance, is also <a href="https://www.financemagnates.com/fintech/uk-tech-lobby-chief-backs-regulators-against-microsoft-revolut-spats/" target="_blank" rel="follow">struggling to secure a banking license</a> in the UK, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported. Moreover, the bank <a href="https://www.financemagnates.com/fintech/revolut-reportedly-lost-20m-to-criminals-due-to-system-flaws/" target="_blank" rel="follow">reportedly lost $20 million</a> to fraudsters due to a fault in its payment systems, according to the Financial Times.</p><p>However, despite the challenges, Revolut recently <a href="https://www.financemagnates.com/forex/news-nuggets-1-june-revolut-hits-30m-users-crypto-trading-on-tp-icap/" target="_blank" rel="follow">surpassed 30 million</a> users on its platform, "growing almost one million customers per month," according to Nik Storonsky, the company's Co-Founder and CEO. </p><p>Last month, the challenger bank <a href="https://www.financemagnates.com/fintech/revolut-expands-super-app-with-robo-advisor-launch-in-us/" target="_blank" rel="follow">added a robo-advisor</a> to its super app for users in the United States. It also <a href="https://www.financemagnates.com/forex/news-nuggets-24-july-revolut-debuts-joint-accounts-in-the-uk-tradefeedr-hires-new-exec/" target="_blank" rel="follow">rolled out Joints Accounts</a> products in the UK and <a href="https://www.financemagnates.com/fintech/payments/revolut-expands-financial-services-to-new-zealand/" target="_blank" rel="follow">expanded its financial services</a> to New Zealand. </p>

This article was written by Solomon Oladipupo at www.financemagnates.com.