SoFi Technologies to Terminate Crypto Trading Services by December 19
Summary:
US financial firm, SoFi Technologies, has decided to terminate its crypto trading services by Dec 19, 2021. Existing crypto accounts must be transferred to Blockchain.com. Customers in certain US states must sell off unsupported altcoins before transfer. The reason for the closure hasn't been revealed, although regulatory scrutiny is speculated as a cause. The decision won't affect other SoFi Invest features. As per its latest earnings report, SoFi holds $139 million in various cryptocurrencies as client deposits.
SoFi Technologies, a US-based personal finance firm, has announced that it will terminate its cryptocurrency trading services by December 19. As per the notice published on November 29, new cryptocurrency account setups on SoFi have been immediately put on hold. Current SoFi crypto users must transfer their accounts to Blockchain.com or choose to shut them down. Moreover, customers from Hawaii, Louisiana, New Jersey, Nevada, Tennessee, Texas, and Virginia are required to sell off certain altcoins not supported on Blockchain.com before moving their accounts. Crypto clients of SoFi based in New York must terminate their accounts by January 2024 due to the inaccessibility of Blockchain.com in the state. The company didn't reveal the rationale behind discontinuing its crypto services but banking regulators' increased oversight of the sector has been speculated as a potential reason. The closure of SoFi's cryptocurrency accounts doesn't impact its other SoFi Invest services including brokerage accounts and Individual Retirement Arrangements (IRAs). SoFi revealed in their recent earnings report that they hold $139 million in Bitcoin (BTC), Ether (ETH), and other altcoins as customer deposits, which saw a rise from $107 million the previous year. SoFi earlier mentioned that the Federal Reserve had identified certain crypto-related activities of SoFi Digital Assets, LLC, which the Federal Reserve deemed as not permissible for a bank holding company under the Bank Holding Company Act and Regulation Y. Regardless, the company was given permission to maintain its crypto operations for an initial period of two years with the potential for three-year extensions later, as long as it doesn't widen the range of these activities or augment its risk exposure to digital assets.
Published At
11/29/2023 4:12:24 PM
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