Leading fintech platform Revolut has announced that it will stop cryptocurrency buying for its UK business customers from January 3, 2024, to comply with new regulatory requirements from the country’s Financial Conduct Authority (FCA).
- Revolut will halt crypto purchases for UK business customers on January 3, 2024, in response to stricter FCA rules.
- The FCA’s new measures aim to protect investors from the risks of crypto trading through enhanced disclosures and cooling-off periods.
- Existing crypto holdings at Revolut Business will not be affected, but users will need alternative platforms for future crypto buys.
- The change only impacts Revolut’s business offerings and not retail investors.
- Some critics argue the stringent regulations could push crypto traders away from regulated exchanges.
- Revolut asserts the move helps enhance customer protection in line with the FCA’s stance.
In an email to clients seen by City A.M., Revolut said “[…] as we await final regulatory clarification, we have taken the decision to pause the buying of cryptocurrencies for Revolut Business customers from January 3, 2024.”
The move comes after Revolut registered as a cryptoasset firm with the FCA in September 2022 to comply with the regulator’s stringent new rules for crypto firms.
FCA Crypto Asset Promotions Policy
The FCA’s Crypto Asset Promotions Policy, which took effect in October, aims to protect retail investors by requiring enhanced risk disclosures, cooling-off periods, and banning promotional incentives for crypto trading.
"The FCA's clampdown may force more Crypto activity into exempt DeFi platforms and P2P transactions outside the purview of the regulator" @JasonADeane comments on the FCA's new 'Crypto Promotions' rules https://t.co/Pxyobuf1Sx
— Renewable Blox (@RenewableBlox) June 16, 2022
While Revolut says the change for its business clients helps protect customers in line with the FCA’s stance, some critics like Jason Deane worry the regulations could drive users away from regulated exchanges.
Existing Holdings Not Affected
Revolut clarified that existing crypto holdings for its UK business customers will not be impacted. Users will still be able to sell or transfer their crypto assets, but will have to find alternative platforms for future crypto purchases after January 2024.
The change only impacts Revolut’s business offerings and not retail investors, who will continue to have access to crypto purchases as before.
Revolut joins other platforms like Bybit and PayPal that have limited crypto services for UK customers due to the stringent new FCA regulations.
We’ll continue to monitor this developing story and how fintechs adapt to the increasing regulatory scrutiny around cryptocurrency.