Revolut Halts UK Crypto Purchases Amid FCA Regulatory Changes

A media report states that Neobank Revolut will temporarily halt cryptocurrency purchases on its business platform in the United Kingdom at the beginning of the new year. Revolut made this decision in accordance with the aforementioned report.

Revolut informed customers of the decision through an email that only emphasized purchase, giving the impression that storing cryptocurrency and selling it might continue without interruption.

Revolut stated that it needed to suspend operations in order to comply with the new Financial Conduct Authority (FCA) guidelines on promoting cryptocurrency, which will take effect on January 8, 2024, and to allow for additional time.

It was announced that Revolut Business would stop purchasing cryptocurrencies on January 3. Revolut Business sent the following letter to clients, which was reprinted in a post on X (formerly known as Twitter): The FCA rules, which the regulator itself described as “tough,” have harmed several enterprises, including Revolut.

“We’ll need to adjust our current Business crypto offering to make sure all of the new requirements are met.”

The FCA announced the restrictions in June to position cryptocurrency advertising in a manner comparable to other high-risk financial products. The new rules included a prohibition on bonuses for introducing new customers, a “cooling-off period” that delays the placing of orders from first-time investors, and client cautions about the dangerous nature of crypto investments.

Additionally, the new restrictions included a ban on compensation for referring new customers. After encountering difficulties with compliance, the Financial Conduct Authority (FCA) granted an extension from the original deadline of October 8 to the new date of January 8.

During the month of September, the Financial Conduct Authority (FCA) had previously observed that the level of participation from numerous cryptocurrency companies had been relatively low. The Financial Conduct Authority (FCA) had recorded more than 200 violations of the rules by the 25th of October, and in November, it released supplementary guidance on the restrictions.

With the announcement that Bybit was exiting the United Kingdom market in September, NMarinade Finance, which is based in Solana, started barring customers from the United Kingdom.

Because of a violation of the regulations committed by its compliance partner, Rebuildoingsociety.com, Binance put a stop to the process of onboarding new customers in the country in October.