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Revolut Business allegedly reduces cryptocurrency offerings in anticipation of upcoming UK regulations.
Neobank Revolut will temporarily suspend cryptocurrency purchases on its business platform in the United Kingdom at the start of the new year, as reported by the media. An email notifying customers of this decision indicated that only purchases would be affected, suggesting that holding and selling crypto could continue without interruption.
Revolut stated that the pause is necessary to allow more time to adhere to new Financial Conduct Authority (FCA) regulations regarding crypto promotion that take effect on Jan. 8, 2024. The company will cease crypto purchases on Jan. 3, as mentioned. In a message shared in an X (formerly Twitter) post, Revolut Business informed customers:
“We’ll need to adjust our current Business crypto offering to make sure all of the new requirements are met.”
Revolut is among several companies affected by the FCA regulations, which the regulator has characterized as “tough.” These rules were announced in June and aim to align crypto advertising with other high-risk investment products.
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New requirements include customer warnings about the risks associated with crypto investments, a prohibition on bonuses for referring new customers, and a “cooling-off period” that delays order placements for first-time investors.
Related: Binance, OKX to comply with new financial promotions rules in UK
The Jan. 8 deadline is an extension from the original Oct. 8 date, granted after it became clear that compliance challenges would arise. In September, the FCA noted that many crypto firms were engaging minimally. By Oct. 25, the FCA had recorded over 200 violations of the rules and provided additional guidance on the regulations in November.
In September, Bybit announced its exit from the U.K. market, while Solana-based NMarinade Finance began restricting access for U.K. users. Binance stopped onboarding new customers in the country in October after its compliance partner, Rebuildoingsociety.com, encountered issues with the regulations.
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