Revolut, a leading financial technology player, will reportedly temporarily suspend cryptocurrency trading for its corporate clients in the UK. This decision was taken amidst new regulations being prepared by the Financial Conduct Authority (FCA), the financial regulator in the UK.
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Governance and regulation
Crypto regulations kill Revolut
Based on report Revolut will discontinue crypto asset trading capabilities for business customers in the UK. Revolut’s decision to temporarily suspend cryptocurrency trading for business customers is a direct response to the upcoming FCA regulations. Financial regulators are preparing new regulations aimed at advertising financial products, including cryptocurrencies. The FCA is becoming increasingly active in the crypto world. For example, Poloniex was recently reprimanded after receiving a warning from the financial watchdog.
These regulations are intended to protect consumers from misleading information and false claims regarding crypto assets. This was announced to Revolut in an email to users. For example, it can be read that from January 3, 2024, the company will stop the ability of UK customers to purchase crypto via Revolut Business. The rules will include a 24-hour “cooling off” period for investors, as well as a ban on incentives such as “refer a friend” bonuses.
There are no cryptocurrencies in the UK at the moment
Revolut, as one of the leading fintech companies, is taking proactive steps to comply with the upcoming regulations. “These requirements are intended to improve customer experience and provide additional protections for new and existing investors in crypto assets,” the company wrote in an email.
“As a result, we need to adapt our current crypto offering for businesses to ensure all new requirements are met.”
Therefore, Revolut’s decision has negative consequences for business customers who use the platform for their crypto transactions. It is not yet known exactly how long the suspension will last.
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