In response to impending regulatory adjustments, financial technology giant Revolut is set to temporarily suspend certain cryptocurrency services for its business clients in the United Kingdom, according to a report by City A.M. This move comes after the Financial Conduct Authority (FCA) announced new rules for crypto assets, scheduled to take effect in the new year.
Temporary halt on crypto purchases
Starting from January 3, 2024, Revolut will pause the ability of its UK business customers to buy cryptocurrencies through its platform. The decision allows the company sufficient time to align its services with the FCA’s recently unveiled requirements. During this period, business clients will retain the capability to hold and sell existing crypto assets.
The FCA’s forthcoming rules encompass measures to enhance customer protection and the overall crypto investment experience. Among these regulations is introducing a 24-hour “cooling off period” for investors, offering them a window for reconsideration. The rules also prohibit incentives such as “refer a friend” bonuses, aligning with the FCA’s commitment to fostering a secure and transparent crypto environment.
Revolut, acknowledging the regulatory changes, emphasized the necessity of adjusting its business crypto offering to ensure compliance with the new requirements. The fintech firm expressed its commitment to safeguarding the interests of both new and existing investors in crypto assets.
Global precedent: Revolut’s prior crypto service suspension in the US
This isn’t the first time Revolut has adjusted its crypto services in response to regulatory dynamics. In the United States, the fintech company temporarily halted its crypto activity earlier in the year, citing challenges posed by regulatory uncertainty. The decision to pause services reflected Revolut’s strategic approach to navigating the complex regulatory landscapes across different regions.
The UK’s evolving regulatory framework for crypto assets has prompted companies like Revolut to reassess and adapt their services. The government’s efforts to strike a balance between fostering innovation and ensuring user protection underscore the challenges crypto firms operating in the UK market face. Other players in the industry continue to navigate these regulatory waters, with some, like PayPal UK, successfully registering with the FCA to offer specific crypto asset activities.
In conclusion, Revolut’s temporary suspension of crypto purchases for its UK business clients aligns with its proactive approach to regulatory changes. As the FCA’s new rules come into effect, Revolut prioritizes compliance and customer protection, reflecting a broader trend of financial institutions adjusting their strategies to meet regulatory standards.
Source: https://www.cryptopolitan.com/revolut-temporarily-halt-crypto-services-uk/