In a tense regulatory environment, Revolut is taking the difficult decision to end its crypto-related services in the USA. Find out why this neobank has decided to back down, and what the consequences are for US investors.
The dark clouds of the US regulatory climate continue to hang over the cryptocurrency world. This time, it’s neobank Revolut that has announced an unexpected withdrawal of its digital asset-related services for US customers. An email has been sent to investors to inform them of this decision, which will take effect as early as next month.
Revolut protects its customers?
Motivated by regulatory uncertainty in the country, Revolut has taken this difficult decision in consultation with its US banking partner. A company spokesperson told Decrypt: “Due to the changing regulatory environment and uncertainties surrounding the crypto market in the US, we have taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies via Revolut in the US. This decision was not taken lightly, and we understand the disappointment this may cause.”
In concrete terms, from September 2 onwards, it will no longer be possible for affected investors to place buy orders on cryptocurrencies. Then, from October 3, all crypto services will be closed, and customers still holding a balance in digital assets will automatically see this sold at market price.
This sudden withdrawal is not Revolut’s first move towards cryptocurrencies. Last month, the neobank had already delisted Polygon (MATIC), Cardano (ADA) and Solana (SOL), in reaction to the Securities and Exchange Commission’s (SEC) recent firm stance on certain altcoins it considers to be securities.
The neobank’s latest decision to withdraw from the market reflects its caution in the face of the unstable regulatory environment in the United States. By withdrawing completely from the US market regarding cryptocurrencies, Revolut is undoubtedly seeking to protect itself from potential lawsuits and to shield its customers from the uncertainties hanging over the crypto market across the Atlantic. For US investors, this move represents an additional challenge to overcome in an already complex environment, where the future of cryptocurrencies is still in search of stability and regulatory clarity.