Revolut halts UK business crypto purchases amid regulatory changes

In response to forthcoming regulatory changes set by the Financial Conduct Authority (FCA), Revolut, the fintech giant, is set to pause certain cryptocurrency services for its business clients in the UK. The move follows the FCA’s announcement of new rules for crypto assets, slated to take effect on January 8, 2024.

Temporary halt on crypto purchases for UK business clients

Come January 3, 2024, Revolut will temporarily suspend its UK business customers’ ability to purchase cryptocurrency through its platform. The fintech company clarified that while buying crypto will be temporarily halted, business clients will retain the option to hold and sell their existing digital assets. This decision aligns with Revolut’s commitment to ensuring compliance with the impending FCA regulations.

Adjustments to meet regulatory requirements

The FCA’s new rules, introduced in October, include significant changes such as a 24-hour “cooling off period” for investors and a prohibition on incentives like “refer a friend” bonuses. These measures are designed to enhance the customer journey and provide added protection for both new and existing investors in the crypto market.

Revolut, in an email seen by City A.M., confirmed the temporary suspension and emphasized the need for adjustments to its current Business crypto offering to align with the upcoming regulatory requirements. The company acknowledged the importance of complying with the new standards to safeguard the interests of its clientele.

Navigating regulatory uncertainty in the cryptocurrency market

This isn’t the first time Revolut has adjusted its crypto services in response to regulatory challenges. The company previously halted its crypto activity in the United States earlier in the year, citing a challenging regulatory environment. The decision to pause crypto purchases for UK business clients is seen as a strategic move to adapt to evolving regulatory landscapes while maintaining operational continuity for its retail customers.

Revolut’s decision comes at a time when various crypto firms are carefully navigating regulatory frameworks globally. In the UK, the government is working to strike a balance between fostering innovation and implementing rules to protect users. Notably, in November, PayPal UK successfully registered with the FCA, demonstrating the ongoing efforts of financial institutions to align with regulatory expectations.

Conclusion

In conclusion, Revolut’s temporary halt on crypto purchases for its UK business clients reflects the company’s commitment to compliance and adaptability in the face of evolving regulatory landscapes. As the FCA introduces new rules to enhance investor protection, fintech firms are making strategic adjustments to ensure their offerings align with the latest standards. This move by Revolut underscores the challenges and opportunities inherent in navigating the dynamic world of cryptocurrency within a framework of regulatory change.

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