Revolut has announced a temporary suspension of its cryptocurrency trading services for its business customers in the United Kingdom. This move is in response to expected regulatory changes, as reported by City AM on December 18.
The Financial Conduct Authority (FCA) rolled out a set of new rules for the crypto industry in October, due to be implemented in early 2024.
Suspension of crypto trading
According to internal communications obtained by the news outlet, Revolut will discontinue the ability for UK business customers to purchase cryptocurrencies through its platform from January 3, 2024. However, these customers will retain the ability to hold and sell their existing crypto assets. The company’s private customers will experience no changes in their services.
Although Revolut has not issued a formal statement, the company confirmed the authenticity of the information circulated in the email, which detailed the company’s commitment to adapt its business crypto offering to the new regulatory requirements, with the aim was emphasized to improve customer experience and ensure better protection for crypto investors.
New rules
Revolut’s decision is a strategic move to adapt to new regulations set out by the FCA in October. These regulations are expected to introduce several measures aimed at improving 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 ban on promotional incentives such as ‘refer a friend’ bonuses.
The FCA has scheduled enforcement of these rules for January 8, 2024, giving registered crypto firms sufficient time to integrate the necessary technology updates to comply with the new standards.
Revolut’s proactive approach in Britain is consistent with its previous stance in the US, where it has also temporarily suspended its crypto operations due to regulatory ambiguities.
This development signals a growing trend among fintech companies to proactively adapt to the changing regulatory landscape surrounding cryptocurrencies, underscoring the industry’s commitment to compliance and customer protection.