By George Ward
Revolut, the crypto-friendly neobank, has revealed that it is ending its crypto services in the United States. The latest action is in response to the country’s current regulatory uncertainty regarding digital assets in America.
Planned Exit To Affect Users
The platform revealed its plans to stop all other crypto-related services after partially delisting some digital assets from its platform on August 4. Revolut plans to suspend access to crypto assets through its platform on September 2, 2023, and cease operations with its US banking partner.
According to the official statement, users will no longer be able to engage in crypto-related activities on Revolut as the deadline approaches. Accordingly, the final step in this transition will be the complete shutdown of all crypto services on October 3.
According to the spokesperson for the crypto platform, its decision to exit the US market will affect only a tiny fraction of users (merely 1%) of their crypto customer base worldwide. However, the announcement clarified that this move would not hinder the firm’s non-crypto operations in the country.
Furthermore, the firm reached out to its valued clients through personalized emails communicating the suspension of its services to its US crypto customers. The company has also reassured its customers that its dedicated support team is available to answer any questions or concerns.
Earlier, Revolut US had announced the delisting of specific crypto assets, notably Cardano (ADA), Solana (SOL), and Polygon (MATIC). Meanwhile, the delistings, scheduled for September, were reported in late June, causing massive debate in the crypto community.
Meanwhile, Revolut has supported approximately 30 different cryptocurrencies in the United States since late July, providing their customers with diverse options.
US Crypto Regulatory Concerns
Since the start of the year, there have been numerous fears about the regulatory uncertainty in the US crypto space following the aggressive enforcement actions by the Securities and Exchange Commission (SEC). Currently, Coinbase, a well-known cryptocurrency exchange, is involved in a legal dispute with the US SEC.
The company argues against the SEC’s motion that the assets on its trading platform and services are investment contracts under securities law. Hence, it has been mounting a solid defense in the ongoing lawsuit.
In an interview earlier in the year, Coinbase CEO Brian Armstrong and Gemini Co-Founder Cameron Winklevoss hinted about shifting their operations from the United States to the United Kingdom. This consideration arose due to their ongoing issues with the US regulator.
They also raise concerns about the impact of the regulator’s move on their businesses. Asides from Coinbase and Gemini, other crypto exchanges like eToro, and Nexo have either suspended their US operations or exited the country entirely.