Financial technology company Revolut is reportedly making adjustments to its cryptocurrency services in response to new regulations imposed by the UK’s Financial Conduct Authority (FCA). Starting from January 2024, Revolut will temporarily suspend cryptocurrency purchases for its business clients in the United Kingdom. This move is aimed at ensuring compliance with the FCA’s updated rules on crypto promotion and to enhance customer protection in the crypto asset space.
According to City A.M, an email from Revolut states that the suspension of crypto purchases for business clients will come into effect on January 3, 2024. During this period, Revolut’s UK business customers will only be allowed to sell and hold cryptocurrencies but will be unable to make new purchases using the Revolut Business platform. The company is taking these measures to ensure that it meets all the requirements set by the FCA, which aims to enhance the customer experience and provide additional protection for investors.
While the email from Revolut specifically mentions the suspension of crypto purchases for business clients, it does not clarify the impact on retail customers. This omission suggests that retail customers may not be affected by the temporary halt in cryptocurrency purchases. However, it is worth noting that this information is not explicitly stated in the provided report and requires further clarification from Revolut.
Revolut’s decision to temporarily suspend crypto purchases follows a similar trend observed in the industry. In August, online payments company PayPal announced that its UK customers would no longer be able to buy cryptocurrencies through its platform. However, PayPal expressed intentions to reinstate the functionality in early 2024. Similarly, Binance, one of the largest crypto exchanges globally, stopped accepting new users in the UK due to regulatory restrictions imposed by the FCA.
The FCA has been actively implementing strict regulations to ensure consumer protection and enhance regulatory oversight in the crypto industry. These regulations include rules on crypto marketing, which came into effect on October 8, 2023. To allow companies sufficient time for technical development, the FCA extended the compliance deadline to January 8, 2024.
Revolut’s decision to halt cryptocurrency purchases for its UK business clients is a proactive response to the new regulations imposed by the FCA. By temporarily suspending this service, Revolut aims to comply with the FCA’s requirements and improve investor protection in the crypto asset space. While the impact on retail customers remains unclear, Revolut’s actions align with the industry trend of adjusting services to meet regulatory standards. As the crypto industry continues to evolve, companies like Revolut must adapt and ensure compliance to maintain trust and provide a secure environment for their customers.