Amid the evolving landscape of crypto regulation in the United States, financial technology company Revolut has announced that it is “suspending” crypto services in the US.
A Revolut spokesperson said: CryptoSlatewill the company, along with its US banking partner, suspend access to cryptocurrencies for its US customers from September 2, 2023, specifically
“As a result of the evolving regulations and uncertainties surrounding the crypto market in the US.”
This suspension will prevent US customers of Revolut from placing buy orders for cryptocurrencies. From October 3, 2023, they will no longer be able to buy, sell or hold cryptocurrencies.
This decision comes after widespread uncertainty reflected in several other cryptocurrency exchanges adjusting their strategies.
Crypto regulatory hurdles in the US
eToro has limited access to specific cryptocurrencies for its users in the US, citing regulatory developments as a primary cause.
Similarly, Coinbase is embroiled in a lawsuit with the Securities and Exchange Commission (SEC), which opposes the idea that its assets and services qualify as investment contracts under securities laws.
In Q1 2023, Coinbase CEO Brian Armstrong and Gemini co-founder Cameron Winklevoss both noted that they had seriously considered withdrawing from the US for the UK over the same issues.
At the time, Armstrong poured cold water on the idea of an imminent departure from the US, saying that this is only an option if there is no clarity on US regulations in “a number of years”. While Winklevoss noted, “To continue to build our business and invest in recruiting, we need to look elsewhere,” citing the UK as a potential second headquarters for operations.
Furthermore, crypto exchange Nexo left the US in late 2022, citing regulatory uncertainty.
Uphold also stopped striking for US clients in March of this year following SEC guidance.
Revolut exit to affect limited users
Revolut’s spokesperson clarified that this suspension will affect less than 1% of its global crypto customers, stating:
“This suspension will not affect Revolut users outside the US in any way and will affect less than 1% of Revolut’s crypto customers worldwide. Revolut customers in all other markets can continue to sign up and enjoy using our crypto services.”
In this challenging interaction between cryptocurrency platforms and regulators, the company’s move reflects a broader trend of digital currency providers navigating the complex waters of regulatory oversight.
A Revolut spokesperson confirmed
“Crypto customers in the US will find all relevant information regarding the suspension in the email communications they received from Revolut.
Our dedicated support team is available to answer any concerns and questions from our US crypto customers through our in-app chat.
Revolut’s decision underscores the broader implications of the U.S. regulatory uncertainty in the global crypto market.