Digital neobank Revolut has announced that it will suspend all cryptocurrency-related services within the United States. The decision comes in response to the prevailing ambiguities and complex regulatory environment surrounding the cryptocurrency industry in the country.
Suspension Timeline and Details
The suspension will be implemented in two phases. Starting September 2, US customers will no longer be able to execute purchase orders for cryptocurrencies on the Revolut platform. The restrictions will tighten further from October 3, when US customers will be completely unable to buy, sell, or hold any cryptocurrencies through Revolut.
A spokesperson for the company told Blockworks on Friday, “As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the US.” They added, “This decision has not been taken lightly, and we understand the disappointment this may cause.”
International Customers Unaffected
It’s important to note that the suspension is only applicable to Revolut users in the US. Customers in other markets can still sign up and use Revolut’s crypto services without any changes. Revolut has assured that pertinent information regarding the suspension of crypto services in the US will be communicated directly to the affected customers.
Challenges in the US Crypto Landscape
The move by Revolut reflects the broader challenges that leading crypto firms are encountering in the US. Both Binance and Coinbase have found themselves embroiled in legal disputes with the Securities and Exchange Commission over accusations of offering unregistered securities.
Coinbase, in particular, has argued that the SEC lacks the authority to “retroactively” oversee digital asset exchanges and has accused the regulatory body of overstepping its jurisdiction in its attempt to assert control over the regulation of the industry.
In July, Revolut had already informed its US customers that it would delist Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL tokens from its platform. This decision was also prompted by the evolving legal landscape and regulatory adjustments around cryptocurrencies in the US.
The suspension of Revolut’s crypto services in the US underscores the ongoing uncertainty and complexity of the regulatory environment for cryptocurrencies in the country. While disappointing for US-based users, the decision highlights the need for clear and consistent regulations to foster a stable and thriving crypto ecosystem.
