Revolut Temporarily Suspends Crypto Purchases in UK due to New Regulatory Rules
Summary:
Revolut, the Neobank, will temporarily suspend cryptocurrency purchases in the UK from early 2024 due to new regulatory rules from the Financial Conduct Authority (FCA). The bank joins several companies grappling with these strict regulations, which aim to control crypto advertising in alignment with other high-risk investment products. The rules include customer warnings about financial risks, a ban on bonuses for new client referrals, and a cooling-off period introduced for first-time investors. However, the holding and selling of crypto will not be affected by this suspension.
Revolut, a neobank, has announced a temporary cessation of cryptocurrency buying on its UK business platform beginning in the new year. This announcement, which came via an email to its customers, did not extend to the holding or sale of cryptocurrencies, which will continue as normal. The pause is to aid Revolut's compliance with newly implemented regulatory rules by the UK's Financial Conduct Authority (FCA) on cryptocurrency promotion, set to enforce from 8th January 2024. The company plans to suspend cryptocurrency purchases starting from the 3rd of January. A customer communication, shared on social media platform X (previously known as Twitter), revealed Revolut's intentions to adapt its current Business crypto services to ensure they meet the new regulatory standards.
Revolut joins several companies affected by the FCA's stringent rules, which the regulatory authority labelled as "difficult". Introduced in June, these rules aim to regulate cryptocurrency advertising in alignment with other high-risk investment products. Part of these new stipulations include cautioning customers about the potential risks associated with crypto investments, prohibiting bonuses for customer referrals and introducing a "cooling-off period" for first-time investors. Regulation compliance dates were extended to January 8 from the previous deadline of October 8 due to emerging compliance issues. By 25 October, the FCA had noted over 200 breaches of the new rules, leading to the release of additional guidelines in November. Cryptocurrency players like Bybit withdrew from the UK market and NMarinade Finance (a Solana-based platform) commenced blocking UK users in September. In line with these changes, renowned crypto platform Binance also ceased accepting new UK customers in October, following a compliance violation by its partnering establishment, Rebuildoingsociety.com.
Published At
12/18/2023 10:43:27 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.