In light of the evolving regulatory landscape surrounding digital currencies in the US, Revolut has decided to shut down its crypto offerings in the country.
By October 3, 2023, US-based users of Revolut will experience a halt in their crypto services, preventing any further transactions on the platform.
While the broader crypto industry grapples with the SEC's viewpoint, which leans towards classifying a significant portion of digital currencies as securities, Revolut has taken proactive steps. The company has already delisted Cardano (ADA), Solana (SOL), and Polygon (MATIC) given that the SEC had opined that they were securities. Their removal is set to be finalised by September 18.
First published in an article earlier today by Decrypt, a spokesperson for Revolut told the news platform:
“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the U.S. This decision has not been taken lightly, and we understand the disappointment this may cause.”
Regulatory action began ramping up when the SEC moved against major players in the crypto industry. The allegations, made by the SEC, centred around registration discrepancies, and have been met with counter arguments by the implicated platforms.
Despite the challenges in the US, Revolut's global crypto initiatives are on a steady course. The company has been continuing to expand in regions such as Europe. A popular staking program, available to users in the UK and several European countries, offered the opportunity to earn cryptocurrency rewards, and was well received.
The decision to shutter its crypto services in the US, set to commence on September 2, 2023, highlights the issues between innovation in the crypto space and the ever-evolving regulatory frameworks.
As the US continues to provide what is seen as a muddy and opaque framework for cryptocurrencies going forward, it is likely to lose far more companies of the calibre of Revolut, as Asia and Europe step up in an effort to capture the markets that such an innovative technology provides.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.