British fintech company Revolut announced that it would be suspending its cryptocurrency services in the United States due to the country’s “regulatory environment”. The company said US citizens would no longer be able to buy cryptocurrencies using its platform from September 2.
The company apprised its customers about the decision via an official mail on August 4, 2023. However, its users will be able to sell crypto assets on Revolut till October 2. Post that, US customers of Revolut would no longer be able to purchase, sell or hold cryptocurrencies on the platform.
Revolut added that in case crypto users are unable to sell their crypto holdings on the platform by October 2, their assets will be liquidated on October 3. The users will be paid the same market price for every token.
Reacting to the development, a Revolut spokesperson said the changing regulatory environment of the US and the uncertainty around cryptocurrencies had prompted the fintech company to take the decision along with its banking partner Metropolitan Commercial Bank.
However, the company has maintained that the move would not impact its users accessing Revolut’s crypto services from other countries. They will be able to register and access these services seamlessly like earlier.
The development comes days after Revolu delisted leading crypto tokens Solana (SOL), Polygon (MATIC), and Cardano (ADA) from its exchange in the US. Presently, the three tokens are categorized as “unregistered securities” by the US Securities and Exchange Commission (SEC).
Revolut’s decision comes in the wake of growing uncertainty over the regulatory environment for cryptocurrency trading in the US. Earlier in June, the SEC had filed a lawsuit against leading crypto exchange Coinbased and alleged that it had been functioning as an unregistered broker in the country. The regulatory body filed the lawsuit hours after filing a similar lawsuit against another crypto exchange Binance.
The SEC had accused Coinbase of earning “billions of dollars” since 2019 by “unlawfully facilitating” the purchase and sale of crypto assets and that Coinbase had been operating in the US as a crypto exchange, a broker, and a clearing house without duly registering with the SEC.
In its lawsuit against Binance, SEC alleged that the exchange was involved in the sale of unregistered securities. Binance and its founder Changpeng ‘CZ’ Zhao were accused of operating as a part of a “complex conspiracy” that involved conflicts of interests, fraud, and lack of disclosure.
Over the past few years, Binance and Coinbase have served as some of the popular sources for information about live cryptocurrency prices and well the Top 10 cryptocurrencies were performing.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
