Financial technology company Revolut recently announced its plans to suspend cryptocurrency purchases for its business clients in the United Kingdom. This decision is in response to the new rules on cryptocurrency promotion set by the UK’s Financial Conduct Authority (FCA), which will go into effect in January 2024.
Revolut stated that the suspension of cryptocurrency purchases will allow the company to make the necessary adjustments to comply with the FCA’s new regulations. According to an email cited by City A.M., Revolut’s UK business customers will still be able to sell and hold crypto but will not be able to make purchases via the Revolut Business platform starting from January 3, 2024. The email mentioned the need to enhance the customer journey and provide additional protection for investors of crypto assets.
The suspension of cryptocurrency purchases by Revolut primarily affects its business clients. However, the company did not mention any changes for its retail customers, suggesting that they are unaffected by this news. While business clients will no longer be able to buy crypto through Revolut Business, they can still access other crypto services offered by Revolut.
In August, Revolut announced a similar decision regarding its US users, prohibiting them from buying crypto on the platform. The company attributed this move to the lack of regulatory clarity around cryptocurrencies at the time. It is likely that the same rationale applies to the suspension in the UK. Revolut, like many other fintech companies, is navigating the evolving regulatory landscape to ensure compliance and protect its users.
Industry-wide Impact
Revolut is not the only company affected by the FCA’s regulatory measures. PayPal, a global online payments company, also implemented a similar action for its UK customers, temporarily disabling crypto purchases but expecting to re-enable the functionality in early 2024. Additionally, Binance, a leading cryptocurrency exchange, recently stopped accepting new users in the UK following the FCA’s restrictions on its local partner.
The Financial Conduct Authority maintains strict regulatory oversight over the crypto industry in the UK, prioritizing consumer protection. The agency’s core rules on crypto marketing became effective on October 8, 2023. However, recognizing the need for technical development, the FCA granted a three-month extension, allowing firms until January 8, 2024, to implement necessary features.
Revolut’s decision to suspend cryptocurrency purchases for its business clients in the UK reflects the company’s commitment to complying with the FCA’s regulatory framework. By making the necessary adjustments, Revolut aims to enhance the customer journey and provide additional protection for investors of crypto assets. This decision aligns with similar measures taken by other fintech companies and reflects the ongoing efforts to navigate the evolving regulatory landscape in the crypto industry.