Neobank Revolut to Temporarily Halt Crypto Purchases on UK Business Platform
Starting in the new year, neobank Revolut will temporarily pause cryptocurrency purchases on its business platform in the United Kingdom, according to a report from City A.M. The email sent to customers mentioned that only purchasing would be affected, implying that holding and selling crypto would continue as usual.
The decision to halt crypto purchases is in response to new Financial Conduct Authority (FCA) rules on promoting crypto, which will come into effect on January 8, 2024. Revolut Business will suspend crypto purchases on January 3. The neobank stated that it needs more time to comply with the new requirements set by the FCA.
“We’ll need to adjust our current Business crypto offering to make sure all of the new requirements are met.”
Impact of FCA Rules on Crypto Advertising
The FCA rules have affected several firms, including Revolut. The regulator described the rules as “tough” and announced them in June with the aim of aligning crypto advertising with other high-risk investment products.
New Requirements for Crypto Investments
The FCA’s new requirements include customer warnings about the risks associated with crypto investments, a ban on referral bonuses, and a “cooling-off period” that delays first-time investors from placing orders.
Hot Take: Potential Negative Effects of Suspending Crypto Services
The temporary suspension of cryptocurrency purchases by Revolut could potentially have negative consequences. It may further distance people from the financial system instead of bringing them closer, as history has shown. Fortunately, Bitcoin offers an alternative that allows individuals to stay connected to the financial world.
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