Revolut Halts Crypto Purchases for UK Business Users in Response to FCA Regulations
London-based digital bank Revolut has announced that it will suspend the ability for Revolut Business users to purchase cryptocurrencies starting in 2024. This decision comes as a response to new crypto regulations implemented by the UK’s Financial Conduct Authority (FCA) aimed at protecting investors from risky crypto investments.
According to an email reviewed by City A.M., Revolut informed its UK business clients that they will no longer be able to buy cryptocurrencies through Revolut Business starting January 3, 2024. While users can still sell or transfer their holdings, the popular trading feature will be revoked.
Revolut’s Initial Crypto Trading and New FCA Rules
In September 2022, Revolut enabled cryptocurrency trading for its UK customers after registering with the FCA. However, the regulator’s new strict rules have compelled the company and other platforms to withdraw services.
The FCA’s crypto asset promotions policy, which came into effect in October, aims to curb misleading advertising and ensure appropriate risk disclosures. The policy includes requirements such as a 24-hour cooling-off period following deposits, prominent risk warnings, and a ban on incentives like “refer a friend” bonuses.
To comply with these regulations, Revolut and other major platforms like Bybit and PayPal have chosen to limit crypto buying and trading specifically for their UK customers. PayPal already withdrew its crypto service for British users in August due to changing regulations.
Critics’ Concerns and Revolut’s Response
Some critics argue that the FCA’s stringent regulations may have counterproductive effects. They believe that such measures push people further away from the financial system. However, Revolut remains committed to meeting the FCA’s requirements and enhancing customer protection for crypto investors.
While the suspension of direct purchase functionality will impact Revolut’s UK business user base, the company assures that its crypto functions will still be available to UK retail investors. Business account holders will need to seek alternative platforms for crypto purchases starting in 2024.
Hot Take: Revolut Adapts to FCA Regulations, Temporarily Halts Crypto Purchases for UK Business Users
Revolut, a London-based digital bank, has responded to the new crypto regulations imposed by the UK’s Financial Conduct Authority (FCA) by suspending the ability for Revolut Business users to purchase cryptocurrencies. This decision aims to protect investors from risky crypto investments. While UK business clients can still sell or transfer their holdings, they will no longer be able to buy cryptocurrencies through Revolut Business starting in January 2024. The FCA’s strict regulations have compelled Revolut and other major platforms like Bybit and PayPal to limit crypto buying and trading for their UK customers. Critics argue that these regulations may have counterproductive effects, but Revolut is committed to meeting the FCA’s requirements and enhancing customer protection for crypto investors.
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