Regulatory pressure in the US continues to intimidate major players in the cryptocurrency markets. The latest bad news comes from Revolut. In the US, where regulatory clarity has not yet been achieved regarding cryptocurrencies, the industry is being disciplined through sanctions. As a result, companies that do not want to take risks have had to take cautious steps.
Fintech company Revolut will no longer provide crypto services to users in the United States, citing the challenging regulatory environment in the country. In the email sent to customers in the US jurisdiction, it was stated that crypto purchases could no longer be made. Users will be able to continue placing sell orders until October 2nd, and from October 3rd, the crypto section of the company will be completely closed, meaning that users will not be able to buy, sell, or hold any cryptocurrency.
A spokesperson for Revolut said the following about the matter:
“Due to the evolving regulatory environment and uncertainties surrounding the cryptocurrency market in the US, we have made the difficult decision to suspend access to cryptocurrencies through Revolut in the US, along with our banking partner.”
The spokesperson stated that Metropolitan Commercial Bank is the company’s banking partner in the US.
According to the spokesperson, this decision does not affect Revolut users outside the US and affects less than 1% of Revolut’s crypto customers worldwide. Revolut customers in all other markets will be able to continue accessing crypto services.
This move comes a month after the SEC declared Polygon (MATIC), Solana (SOL), and Cardano (ADA) as unregistered securities in the US. US users of Revolut holding these three tokens were required to sell them before September 18th, and according to the email, these tokens will be delisted on September 18th.
According to the email, if Revolut’s US users do not sell their crypto assets before October 2nd, the company will liquidate the remaining balance on October 3rd, and users will receive cash payments at the market price for each token.
Coinbase, Ripple, and many other US-based crypto companies have started looking for new homes due to concerns about increasing regulatory pressure. Some US politicians, albeit a minority, argue that the ongoing tough stance is damaging innovation. The retreat of companies like Revolut, coinciding with BlackRock and others diving into crypto, creates an interesting contradiction.