SoFi Technologies to Exit Crypto Market, Urges Customers to Migrate Assets
Online banking platform SoFi Technologies Inc. has announced its decision to leave the cryptocurrency market. The company has informed its customers that they need to either liquidate their accounts in the coming weeks or transfer their assets to Blockchain.com, a crypto exchange and custodial service.
According to a report from Reuters, SoFi will shut down its crypto services on December 19, 2023. As of November 29, the company is no longer accepting new crypto account openings. Only eligible customers will be able to transfer their assets to Blockchain.com. In 2024, SoFi is expected to start referring its customers to other crypto partners.
A Brief History of SoFi
SoFi Technologies was established in 2011 with the aim of providing more affordable options for individuals seeking education funding. In February 2019, the company partnered with Coinbase, a US-based crypto exchange, to offer crypto trading services involving 20 digital currencies.
In August 2023, SoFi alerted its customers about the possibility of having to cease trading certain types of assets due to regulatory hurdles in the United States. The company filed a document with the US Securities and Exchange Commission (SEC), outlining various regulatory risks associated with crypto trading. SoFi acknowledged that it might have to halt trading cryptocurrencies until it obtains additional regulatory permission as they are considered securities.
Hot Take: SoFi Exits Crypto Market Amid Regulatory Uncertainty
SoFi Technologies’ decision to exit the cryptocurrency market comes amidst increasing regulatory uncertainty in the United States. The company’s move reflects the challenges faced by financial institutions operating in the crypto space due to evolving regulations and compliance requirements.
By urging its customers to migrate their assets to Blockchain.com, SoFi aims to ensure that its customers can continue their crypto activities with a trusted and established platform. This decision also aligns with SoFi’s focus on providing a seamless banking experience for its customers, even if it means stepping away from the crypto market for the time being.
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