Revolut, one of the most innovative digital banks, will temporarily suspend cryptocurrency purchases on its business platform in the UK at the start of the new year, according to a media report on December 18. An email notifying customers of this decision specifically addressed purchasing, implying selling crypto and holding it could go uninterrupted.
Revolut said the move is part of its strategy to better prepare for the new advertising rules on promoting crypto that come into force on Jan. 8, 2024. The UK’s financial watchdog, the Financial Conduct Authority (FCA), has recently tightened its advertising rules for promoting digital assets. Revolut Business will halt crypto purchases on Jan. 3.
Under the new FCA’s law, crypto firms must include a “cooling-off period” for first-time investors. These companies must ensure that investors know the risks associated with crypto investments. Additionally, the legislation prohibits companies from using “refer a friend” bonuses to attract new customers.
Revolut explained that these requirements aim to enhance the user experience and provide additional protection to both new and existing investors in the realm of crypto assets.
The company added:
“We’ll need to adjust our current Business crypto offering to make sure all of the new requirements are met.”
The change in services will only affect business customers. Retail customers will not see any changes to their crypto-related activities on the Revolut platform.
The neobank entered the UK market last year after gaining approval from the FCA to provide digital asset services to UK customers. Revolut’s latest decision mirrors a similar move made earlier in the US, where the fintech company temporarily stopped crypto operations due to regulatory uncertainties. These strategic decisions demonstrate Revolut’s commitment to tackling the complex regulatory landscape in different regions.
Revolut Joins Major Companies
Revolut is one of the major crypto adjusting its operations to comply with the new FCA’s requirements. PayPal temporarily suspended crypto sales in the region in October, citing strict advertising rules for digital asset products and services.
PayPal’s move aligned with a growing trend among financial institutions in the UK. Major banks such as First Direct, NatWest, and HSBC have already implemented daily transaction limits on cryptocurrencies. In September, Bybit announced it was leaving the UK crypto market, and Solana-based decentralized protocol Marinade Finance began blocking UK users. Binance also suspended customer onboarding in the region in October after its compliance partner, Rebuildoingsociety.com, violated the rules.