Beginning September 2, 2023, US customers will no longer be able to place cryptocurrency orders on the Revolut platform. By September 18, the delisting process will be completed, and more extensive restrictions will commence from October 3, 2023.
Revolut to Stop Supporting Crypto in the US
From this date, a full ban on US customers accessing cryptocurrencies via Revolut will be implemented. This decision does not affect Revolut’s operations outside the United States, and all US-based crypto customers have been informed of this decision via email.
Regulatory Pressures Affecting Crypto Services
Revolut’s decision reflects its response to the current regulatory environment in the US, particularly the stance of the US Securities and Exchange Commission (SEC). The SEC has classified numerous cryptocurrencies as securities, meaning they are subject to investor protection rules.
The SEC’s position has recently become more assertive, arguing that a significant portion of cryptocurrencies should be treated as securities, and thus subject to investor protection regulations.
Regulatory Actions Prompt Response
The SEC’s increased scrutiny became evident in early June when it launched legal action against prominent crypto exchanges Coinbase and Binance, accusing them of failing to register multiple cryptocurrencies as securities. Both exchanges have denied these allegations.
In response to the SEC’s actions, Revolut promptly delisted Cardano (ADA), Solana (SOL), and Polygon (MATIC) after these tokens were classified as securities by the SEC. This action by Revolut reflects broader industry discussions and responses to evolving regulatory pressures.
While the suspension of Revolut’s cryptocurrency services applies only to the US market, it highlights the complex challenges faced by companies attempting to navigate the changing regulatory environment of the cryptocurrency sector.
Leave a comment