Revolut has declared a temporary halt to its cryptocurrency trading services for its business clients in the U.K. This move is in response to projected regulatory modifications, as reported by City A.M. on Dec. 18.
The Financial Conduct Authority (FCA) has rolled out a series of new rules for the crypto industry in October, set to be implemented in early 2024.
Suspension of crypto trading
According to internal communications obtained by the news outlet, Revolut will discontinue the option for U.K. business customers to purchase cryptocurrencies through its platform starting from Jan. 3, 2024. However, these customers will retain the ability to hold and sell their existing crypto assets. The company’s retail clients will not experience any changes in their service.
While Revolut has not issued a formal statement, the company confirmed the authenticity of the information circulated in the email, which elaborated on the company’s commitment to adapting its business crypto offerings to meet the new regulatory requirements, emphasizing the goal of improving customer experience and ensuring greater protection for crypto investors.
New rules
The decision by Revolut is a strategic move to align with the new regulations set forth by the FCA in October. These regulations are expected to introduce several measures aimed at enhancing investor protection in the crypto market.
Notable among these is the introduction of a 24-hour cooling-off period for new crypto investments and a prohibition on promotional incentives like ‘refer a friend’ bonuses.
The FCA has scheduled the enforcement of these rules for Jan. 8, 2024, allowing registered crypto businesses adequate time to integrate necessary technological updates to comply with the new standards.
Revolut’s proactive approach in the UK aligns with its prior stance in the U.S, where it also temporarily suspended its crypto activities due to regulatory ambiguities.
This development signifies a growing trend among fintech firms to adapt to the evolving regulatory landscape surrounding cryptocurrencies proactively, underlining the sector’s commitment to compliance and customer protection.