Revolut Halts Cryptocurrency Operations in the U.S. Due to Regulatory Challenges
UK-based financial technology company, Revolut, has announced that it will be suspending its cryptocurrency operations in the United States. The decision is a result of the unpredictable nature of the U.S. crypto market and the evolving regulatory measures. Starting on September 2, 2023, U.S. customers will no longer be able to purchase cryptocurrencies on Revolut’s platform. A broader prohibition will take effect on October 3, 2023, blocking U.S. customers’ access to cryptocurrencies completely.
Key Points:
- Revolut will halt cryptocurrency operations in the U.S. due to regulatory challenges.
- U.S. customers will no longer be able to purchase cryptocurrencies on Revolut’s platform starting September 2, 2023.
- From October 3, 2023, U.S. customers will be completely blocked from accessing cryptocurrencies on Revolut.
- The decision is influenced by the Securities and Exchange Commission’s (SEC) classification of cryptocurrencies as securities.
- Revolut’s decision will not impact its operations outside of the U.S.
Revolut’s decision is a response to the Securities and Exchange Commission’s crackdown on cryptocurrencies. The SEC maintains that most cryptocurrencies are securities and should be subject to investor protection rules. This regulatory stance has led to lawsuits against major cryptocurrency exchanges, driving some companies out of the U.S. and into more crypto-friendly countries. Gary Gensler, the chair of the SEC, believes the crypto industry is filled with fraud and hucksters, attracting criticism from the crypto community.
In response to the SEC’s assertions, Revolut has decided to delist Cardano (ADA), Solana (SOL), and Polygon (MATIC), which the SEC has classified as securities. Revolut’s operations outside of the U.S. will continue as usual, and the company is expanding its crypto services in other markets, particularly in Europe.
Hot Take:
Revolut’s decision to halt cryptocurrency operations in the U.S. reflects the challenges posed by the regulatory environment and the SEC’s classification of cryptocurrencies as securities. This move highlights the need for clearer regulations and a more supportive framework for the crypto industry in the United States. The SEC’s actions may inadvertently drive innovation and business opportunities to other countries that embrace cryptocurrencies, potentially hindering the growth of the U.S. crypto market.
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