Revolut has announced the temporary suspension of cryptocurrency trading services for its business customers in the UK. The decision is due to pending regulatory changes, City A.M. reported Dec. 18.
In October, the Financial Conduct Authority (FCA) unveiled a series of new rules for the crypto industry that are set to come into effect in early 2024.
According to internal correspondence obtained by the publication, Revolut will stop allowing its UK business customers to buy cryptocurrencies through its platform from January 3, 2024. However, these customers will be able to continue to hold and sell their existing #cryptoassets. There will be no changes for retail customers.
Although Revolut has not released an official statement, the company confirmed the authenticity of the information in an email. They emphasized their commitment to adapt their cryptocurrency offerings to the new regulatory requirements. This is to improve the customer experience and provide greater protection for crypto asset investors.
The new rules introduced by the FCA include stricter requirements for businesses offering cryptocurrency trading services. They will have to comply with anti-money laundering (#AML) and preventing terrorist financing (#CFT) standards, as well as conduct additional customer due diligence and reporting.
Revolut, founded in 2015, is one of the largest #European fintech startups and offers a wide range of financial services including bank accounts, payments and cryptocurrency trading. The company has over 16 million users in Europe and the #USA.
This is not the first time #Revolut has temporarily suspended cryptocurrency trading services. In March 2021, the company temporarily stopped the sale of cryptocurrencies for its customers in Russia, citing changes in legislation.
Other cryptocurrency platforms and #exchanges are also expected to make changes to their services to comply with the new regulatory requirements. This may lead to stricter regulation of the crypto industry as a whole, which, on the one hand, may improve security and customer protection, but, on the other hand, may limit accessibility and flexibility in cryptocurrency trading.
