Sofi Ends Crypto Services and Offers Migration to Blockchain.com
The financial services platform Sofi has announced that it will no longer offer cryptocurrency services starting Dec. 19. Customers’ accounts will either be migrated to the Blockchain.com platform or closed completely. New account openings have already been suspended since Nov. 29.
Increased Scrutiny Forces Sofi’s Exit from Crypto Sector
Sofi’s decision to exit the digital asset business is due to increased scrutiny from U.S. bank regulators. The company, which received a conditional bank charter in January 2022, was required to obtain necessary approvals within two years. Failure to do so meant Sofi would have to cease the crypto business.
Steps for Migrating Accounts to Blockchain.com
Sofi has provided instructions on its webpage for customers who want to migrate their accounts to Blockchain.com during the transition period. Customers can continue trading cryptocurrency using their Sofi accounts during this time.
Liquidation Requirements for Certain U.S. States
Sofi has informed customers in certain U.S. states, including Hawaii, New Jersey, Louisiana, Nevada, Tennessee, Texas, and Virginia, that they must liquidate specific digital assets before the deadline. Failure to do so will result in Sofi liquidating the assets on their behalf.
New York Customers’ Limitations
Customers in New York State will not be eligible to migrate to Blockchain.com. While their accounts will remain open until Jan. 28, 2024, they will only be able to sell cryptocurrency after the deadline.
Hot Take: Sofi Adjusts Crypto Services Amidst Regulatory Pressure
Financial services platform Sofi has responded to increased regulatory scrutiny by discontinuing its cryptocurrency services. Customers will have the option to migrate their accounts to Blockchain.com or close them. This move comes as U.S. bank regulators impose stricter requirements on the crypto sector. Sofi’s conditional bank charter necessitated the acquisition of necessary approvals within two years, leading to the exit from the digital asset business. Customers in specific states have liquidation obligations, while New York customers face limitations on trading. This decision shows how regulatory pressures continue to shape the cryptocurrency landscape.
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