Amid regulatory changes introduced by the Financial Conduct Authority (FCA) in October, several crypto firms have had to recalibrate their offerings. Revolut, a digital bank, has announced plans to suspend specific crypto services for its UK business clients in response to the impending regulations, according to a source familiar with the matter.
Revolut’s Regulatory Response
Having registered with the FCA in September the previous year to provide crypto services in the UK, Revolut has opted to halt its UK business clients’ ability to purchase cryptocurrencies via Revolut Business beginning January 3, 2024.
However, customers in the country will retain the option to hold and sell crypto assets. City A.M. initially reported this development, referencing an email it had obtained.
Reasons for Suspension and Compliance Measures
The decision to suspend certain crypto services aims to allow Revolut time to align its current business crypto offerings with the new regulatory standards outlined in the “back end” Direct Offer Financial Promotion (DOFP) rules, effective from January 8, 2023.
Moreover, this pause facilitates the necessary adjustments to ensure compliance with the FCA’s stringent requirements.
Broader Impact on Crypto Firms
Numerous crypto firms, including Bybit and PayPal, have had to reevaluate their services and withdraw certain functionalities in response to the FCA’s regulatory directives.
Additionally, the FCA provided an option for firms to request a three-month extension to implement these rules, indicating the challenges faced by the crypto industry in adapting to the evolving regulatory landscape.
Revolut’s temporary suspension of crypto services for UK business clients is also a strategic response to comply with the FCA’s regulations, while aligning its operations with the revised standards. Furthermore, this move also reflects the broader trend within the crypto sector where companies are adjusting their services and operations to adhere to regulatory requirements.
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