Customers Now Urged To Move Funds By Dec. 19

Key Points:

• SoFi is exiting the crypto sector due to increased scrutiny by banking regulators, requiring customers to liquidate or transfer their crypto accounts to Blockchain.com by Dec. 19.
• SoFi initially entered the crypto sector in 2019 but crypto has been a non-material part of its business, leading to the decision to exit the sector.

SoFi crypto exit due to increased scrutiny by banking regulators has caused their customer to liquidate or transfer their crypto accounts to Blockchain.com by Dec. 19.

According to Bloomberg, SoFi is exiting the crypto sector due to increased scrutiny by banking regulators. Customers were informed that they need to liquidate their crypto accounts or transfer them to Blockchain.com.

SoFi, originally a student-lending refinancing company, expanded its services and received a bank charter earlier this year. The approval of the charter was conditional on either receiving necessary regulatory approvals for its crypto business or exiting the digital asset sector.

The Federal Reserve has been increasing scrutiny of lenders’ involvement in digital assets, and in January, expressed concerns about the volatile asset class. SoFi initially entered the crypto sector in 2019 and was a high-profile participant, but crypto has been a non-material part of its business.

SoFi Crypto Exit: Customers Forced to Liquidate or Transfer

Existing SoFi customers will have to move their crypto holdings to Blockchain.com by December 19th, or their balances will be liquidated. Terms of the agreement with Blockchain.com were not disclosed, but SoFi will also refer its members to other crypto partners next year.

Blockchain.com, which operates a crypto exchange and popular crypto wallets, recently closed a $110 million funding round. It has created 87 million wallets and facilitates a significant portion of Bitcoin network transactions. SoFi’s decision to exit the crypto sector comes as banking regulators increase scrutiny in the industry.

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