Crypto-savvy British digital bank, Revolut, has taken the rather bold step to halt its cryptocurrency services for American users. This surprising move is said to be largely due to the unclear shifts taking place within the US regulatory environment and the uncertainties clouding the crypto market across the pond.
Hence, starting from September 2, the possibility of buying cryptocurrencies via the Revolut application would be discontinued for US users, and by October, all access to cryptocurrency holdings would be categorically disabled on the app. As much as this decision may seem drastic, it affects a fraction of Revolut’s global crypto customer base – less than 1% to be exact.
What’s causing these disruptions? The recent surge in regulatory clampdowns on the crypto industry highlights some likely culprits. We are currently witnessing the aftermath of a rather turbulent year for crypto which was marred by several scandals and the collapse of notable projects. These series of events have necessitated an increase in efforts by regulatory bodies such as the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to ensure that industry players keep in line with established regulations.
Crypto companies including the likes of Binance and Coinbase have not been spared and have had lawsuits filed against them for alleged regulatory violations. Simultaneously, traditional banking institutions have been cautionary advisories regarding the risks of engaging with the crypto sector.
Just in case this move by Revolut seems out of the blue, they had already delisted several cryptocurrencies including but not limited to Cardano (ADA), Polygon (Matic), and Solana (SOL) in the US, in response to their classification as unregistered securities by the US SEC earlier on.
What does the future hold for US crypto enthusiasts? Despite these setbacks, Revolut is not waving the white flag just yet. The spokesperson for the neobank expressed their commitment to finding alternative ways to reintroduce access to crypto products hoping to offer cryptocurrency services again to US users in the future.
Essentially, the complexities and uncertainties brought about by the ever-evolving regulatory landscape have made it challenging for major crypto service providers to maintain their services for American customers. We saw this happening earlier in June as well, when Crypto.com, a dominant global cryptocurrency exchange, decided to put a stop to their services for institutional customers in the North American region. Nonetheless, it is not all doom and gloom. As the crypto landscape evolves, we may well witness a return of crypto-friendly banking services like Revolut in the US market.
Source: Cryptonews
