Revolut Halts Crypto Trading Services in the US Due to Regulatory Pressure

In response to escalating regulatory pressures within the nascent cryptocurrency landscape, Revolut, the esteemed digital banking app, is set to cease its crypto trading services for customers based in the United States. The move comes as US regulators intensify their scrutiny on the crypto industry, triggering a strategic decision by Revolut to halt cryptocurrency trading activities starting September 2nd, with a complete shutdown of access to all crypto holdings anticipated a month later.

The decision marks a pivotal juncture in the evolution of digital finance, where the allure of cryptocurrencies faces mounting regulatory challenges. Revolut, a dominant player in the digital banking realm with an impressive $33 billion valuation, has navigated the complex terrain of global finance. However, the shifting regulatory sands in the United States have prompted the company to take this significant step.

The backdrop for Revolut’s decision is a series of critical developments that have ratcheted up regulatory oversight. The crypto industry’s underbelly has witnessed bankruptcies and scandals, igniting a sense of urgency among US regulators. Just recently, the trading of prominent altcoins Solana (SOL), Cardano (ADA), and Polygon (MATIC) faced suspension within the US market. The trigger for this move was the U.S. Securities and Exchange Commission’s (SEC) classification of these altcoins as unregistered securities, as highlighted in lawsuits directed at crypto giants Coinbase and Binance.

A spokesperson for Revolut articulated the company’s stance amidst these turbulent times: “As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the US.”

This strategic pivot underscores Revolut’s commitment to adhering to regulatory mandates while ensuring the best interests of its customers. While this decision undoubtedly alters the landscape of digital finance for its US clientele, it is worth noting that the impact is expected to be contained. Revolut estimates that this move will affect less than 1% of its global customer base.