Revolut, a prominent neobank, is reportedly halting the purchase of cryptocurrencies on its UK business platform at the onset of the upcoming year. The decision was communicated to customers via email, specifying the suspension of buying activities while maintaining the capability to hold and sell existing cryptocurrency assets without disruption.
The rationale behind Revolut's temporary pause in purchasing cryptocurrencies stems from the need to align with the new regulations set by the Financial Conduct Authority (FCA) concerning the promotion of cryptocurrencies. These regulations are slated to come into effect on January 8, 2024. Revolut Business intends to cease buying cryptocurrencies starting from January 3, citing the necessity to modify their current suite of cryptocurrency products to ensure compliance with the impending regulatory requirements.
Revolut joins a growing list of companies impacted by the FCA's regulatory measures, which have been described by the regulator itself as stringent. These rules, introduced in June, aim to standardize cryptocurrency advertising practices, bringing them in line with other investment products carrying high-risk profiles. The new stipulations encompass cautionary disclosures about the risks associated with cryptocurrency investments, prohibition of referral incentives for new customers, and a delay in allowing a "cooling-off" period for initial investors placing orders. The FCA extended the deadline to January 8 from the initial October 8 due to identified compliance challenges, as many cryptocurrency firms had displayed low levels of adherence to the new requirements. As of October 25, the FCA had reported over 200 instances of rule breaches and provided supplementary guidance on these regulations in November.
Notable cryptocurrency entities have responded to the regulatory landscape in the UK. Bybit, in September, declared its withdrawal from the UK market, while Solana-based NMarinade Finance initiated the blocking of UK users. Furthermore, Binance ceased customer registration in the country back in October due to non-compliance issues involving its partner, Rebuildingsociety.com, associated with violations.
