Financial technology company Revolut announced Friday in a letter to its customers in the United States that it would stop offering its services in the country, starting September 2nd. The company added that the action will have minimal effect on its finances and operations in other parts of the world.
Revolut Closes Crypto Business in the U.S.
The sudden action comes on the heels of constantly evolving regulatory actions and statements from U.S. regulators. A Revolut spokesperson echoed this via an email:
“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the U.S., we’ve taken the difficult decision, together with our U.S. banking partner, to suspend access to cryptocurrencies through Revolut in the U.S.”
U.S. customers for the London-based bank will no longer be able to deposit funds into their crypto wallets from September 2nd. Starting October 3rd, other crypto-related services, such as buying, selling, and holding, will be closed down for the company’s American clients.
Revolut, which has around 25 million customers globally, added that the latest announcement will impact less than 1% of its global crypto clients. This will likely ease the minds of its crypto customers in other parts of the world.
Note that Revolut had previously delisted three cryptocurrencies – ADA, SOL, and MATIC – in compliance with the U.S. regulators’ view of securities.
U.S. Regulatory Uncertainties
The uncertainties surrounding cryptocurrencies in the U.S. have been exacerbated recently, especially fueled by the actions of the U.S. Securities and Exchange Commission (SEC).
The financial regulator terms cryptocurrencies as securities, making it mandatory for digital asset custodians to register them with the agency before offering them to U.S. investors. In June, the SEC probed crypto exchanges Binance and Coinbase over the same matter. Later, the regulatory watchdog classified some crypto assets as securities, causing companies like Robinhood and Bakkt to delist three cryptocurrencies. It allowed Bitcoin as the sole cryptocurrency that is not termed as security.
