The well-known fintech platform Revolut has announced drastic decisions due to the “difficult regulatory environment” in the United States. As of September 2, Revolut’s U.S. customers will be cut off from the ability to invest in cryptocurrencies, and as of October 3, the platform will completely shut down access to crypto assets.
Regulators do not favor cryptocurrency adoption in the United States
Over the past few years, cryptocurrencies have been gaining popularity around the world, with many investors seeing them as a profit opportunity. Unfortunately, regulatory inconsistency has raised uncertainty and concerns. In a statement, a Revolut spokesperson stressed that the difficult regulatory environment and fluctuations in the cryptocurrency market were key factors that led the company to make such a drastic decision. However, the closure of the cryptocurrency platform in the US does not mean the end of Revolut globally. The company remains strong in other markets, and the changes will only affect less than 1% of global cryptocurrency users.
“We are determined to continue our mission in other markets, where our platform enjoys great interest and recognition. Our priority is to provide excellent financial services to our customers, but we must also take into account the regulations of the country in question.” – Revolut’s spokesperson stated.
Continuation of previously taken actions
The recent decision to delist the assets of Polygon (MATIC), Solana (SOL) and Cardano (ADA) was the first step in the process. The U.S. Securities and Exchange Commission deemed these tokens to be unregistered securities, prompting the company to take immediate action. While many investors may be disappointed by these decisions, it’s worth remembering that security and regulatory compliance are key to the long-term development of cryptocurrencies.
An important deadline for investors
Meanwhile, US Revolut users still have time to settle their investments. If they don’t sell their cryptocurrencies before October 2, the company will liquidate their balance and refund them the market equivalent for each token.
“We are grateful to our US customers for the support and trust they have placed in us over the years. We believe that cryptocurrencies still have great potential, but we must operate within the regulations that apply in the country,” – The spokesperson added.
Revolut remains strong
Revolut is a financial app that crossed the barrier of 30 million customers worldwide at the end of May 2023. More than 400 million transactions a month are made with its help. Revolut’s offering is not only traditional banking and quick access to multiple fiat currencies. It is also an investment space in stocks and cryptocurrencies. The app provides access to more than 120 coins, although the number may vary by jurisdiction.