The crypto-friendly British neobank Revolut has stated that it will no longer support US customers using cryptocurrency.
The cryptocurrency services were put on hold by the digital bank due to market volatility and changes in the local regulatory landscape.
A Revolut representative told Bloomberg that beginning September 2, the London-based fintech company would no longer allow its US consumers to purchase cryptocurrency through the app.
A month later, the app will prevent users from accessing any of their cryptocurrency.
According to the spokesperson:
Due to “the evolving regulatory environment and the uncertainties around the crypto market in the US,” Revolut and its US banking partner have “taken the difficult decision” to temporarily halt cryptocurrency transactions in the US.
A spokeswoman for Revolut stated that less than one percent of the company’s global crypto consumers would be affected by the decision. About 25 million people throughout the world use this online bank.
Increasing U.S. Cryptocurrency Regulations
There has been a significant uptick in the severity of regulatory crackdowns on the cryptocurrency sector in the United States.
After a year of high-profile scandals and failed endeavors, this level of scrutiny is understandable.
Companies in the cryptocurrency industry, such as Binance and Coinbase, have been hit with a wave of lawsuits from regulatory organizations including the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which allege the companies violated various laws and regulations.
At the same time, US banking regulators have issued a warning to established financial institutions about the dangers of getting involved in the cryptocurrency market.
Many cryptocurrencies were removed from Revolut’s platform.
Several cryptocurrencies, including Cardano (ADA), Polygon (Matic), and Solana (SOL), were claimed to have been blocked from trading in the United States by the British digital bank Revolut.
As of the month of July, Revolut supported 30 different cryptos. The financial technology firm intended to delist even more digital currencies in September.
The US Securities and Exchange Commission had previously categorized them as unregistered securities, prompting this change.
According to Revolut’s website, Metropolitan Commercial Bank is the bank it partners within the United States. Crypto services are provided by Apex Crypto, a division of Bakkt Holdings Inc.
The bank’s representative told Decrypt:
According to the company, “Revolut is actively pursuing alternative means of providing access to crypto products and we hope to offer crypto in the U.S. again in the future.”
As a result of the current regulatory climate, some prominent crypto service providers have struggled to continue serving consumers in the United States.
A major worldwide cryptocurrency exchange, Crypto.com, stated in early June that it would be suspending services to institutional customers in the North American country.