Revolut to Suspend Crypto Services for UK Business Clients
Digital bank Revolut has announced that it will temporarily halt some of its crypto services for business clients in the UK due to upcoming regulations from the Financial Conduct Authority (FCA).
More Time Needed to Adjust to New FCA Requirements
Starting from January 3, 2024, Revolut Business customers in the UK will no longer be able to buy crypto through the platform. This suspension is necessary for Revolut to meet the new requirements set by the FCA, which will take effect on January 8, 2024. However, this change will not affect Revolut’s other customers.
According to an email from Revolut, this pause will not impact your ability to hold or sell crypto via Revolut Business or affect any other tools and features you use with us.
Revolut stated that these new requirements are intended to improve customer protection and enhance the customer journey when it comes to investing in crypto assets.
FCA Introduces Stricter Crypto Rules
The Financial Conduct Authority has been implementing stricter regulations to regulate crypto activities in the UK. In October, the FCA introduced new rules for crypto marketing, including a cooling-off period, the elimination of referral incentives, and warning labels for high-risk crypto activities.
Several other firms, including PayPal and Luno, have also suspended their crypto services in the UK in response to these regulations.
Hot Take: Revolut Temporarily Suspends Crypto Services for UK Business Clients
Revolut’s decision to suspend certain crypto services for its UK business clients is a response to the incoming regulations from the Financial Conduct Authority (FCA). This temporary halt will allow Revolut to adjust to the new requirements and ensure compliance. While this may be an inconvenience for some UK business clients, it is ultimately aimed at enhancing customer protection in the crypto space. As the FCA continues to implement stricter rules, other crypto service providers have also taken similar measures to comply with the regulatory framework. Despite these temporary suspensions, the crypto industry in the UK is likely to adapt and find equitable solutions to meet the requirements set by the FCA for the benefit of investors and consumers.
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