Digital bank Revolut announced that it plans to suspend some of its crypto services for its business clients in the United Kingdom. Revolut cited the Financial Conduct Authority’s (FCA) incoming regulations.
Revolut will reportedly suspend some of its crypto services from its UK business clients as it prepares for incoming rules from the Financial Conduct Authority.
More Time Needed to Adjust to New FCA Requirements
According to a report by City A.M., Revolut will pause UK customers’ ability to buy crypto through Revolut Business as of January 3, 2024. The company said the suspension come because it needs more time to adjust to new requirements set by the FCA. The FCA’s new requirements take effect on January 8, 2024. Revolut said its other customers would not be affected by the suspension.
In an email cited by City A.M. Revolut said:
“This pause won’t impact your ability to hold or sell crypto via Revolut Business or affect any other tools and features you use with us.”
Revolut added:
“These requirements aim to enhance the customer journey and provide additional protection for new and existing investors of crypto assets.
As a result, we’ll need to adjust our current Business crypto offering to make sure all of the new requirements are met.”
FCA Introduces Stricter Crypto Rules
The UK’s financial authority has systematically introduced a regulatory framework to manage crypto asset activities in the country. In June, the FCA announced a set of crypto marketing rules which took effect in October. The new guidelines introduced a “cooling-off” period for crypto buyers and did away with “refer a friend” bonuses and incentives. The FCA’s policies, aimed at protecting investors, further said crypto firms would have to carry warnings for the high-risk nature of crypto activities.
Several firms have voiced their concerns over compliance with the FCA’s rules, with many suspending crypto services in the UK. PayPal halted crypto sales in the UK, citing a regulatory shift. The company said it needed time to adjust to the new regulatory framework.
Rumours were circulating that crypto exchange Bybit would exit the UK, but the firm said it was “in talks” with regulators to find equitable solutions to concerns over forthcoming regulations. Crypto exchange Luno, which is not registered with the FCA, also announced a suspension of services in the UK.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
