Revolut to Suspend Crypto Services for UK Business Clients: Report

Financial technology company Revolut is reportedly planning to halt cryptocurrency purchases for its business clients in the United Kingdom.

As stated by Revolut, the suspension will enable the company to make necessary adjustments in response to the new rules on crypto promotion by the UK’s Financial Conduct Authority (FCA), which will take effect in January 2024.

Revolut to Temporarily Stop Crypto Purchases

Revolut’s UK business customers will only be able to sell and hold crypto but not make purchases via Revolut Business, according to City A.M, which cited an email from the fintech company. According to the report, the service will be halted for business clients starting from Jan. 3, 2024.

An excerpt from the email reads thus:

‘These requirements aim to enhance the customer journey and provide additional protection for new and existing investors of crypto assets. As a result, we’ll need to adjust our current Business crypto offering to make sure all of the new requirements are met.”

The firm previously gained approval from the FCA in September to offer cryptocurrency services to customers in the UK after the regulator included Revolut in its crypto asset firm register.

Meanwhile, Revolut’s email implies that its business clients can still access other crypto services, while the company does not mention retail customers, an indication that they are unaffected by the news.

In August, the fintech company announced that users in the United States will be unable to buy crypto on its platform starting from September, while purchases, selling, and holding will be disabled from October.

According to Revolut, the lack of regulatory clarity for crypto at the time caused the firm to make such a decision.

Companies Take Action Ahead of  FCA’s Crypto Promotional Rule

Global online payments company Paypal also announced a similar action for its UK customers in August, stating that users in the country will not be able to buy crypto via its platform starting at the beginning of October. However, the firm said it was expecting to re-enable the functionality in early 2024.

Furthermore, crypto exchange giant Binance recently stopped accepting new users in the United Kingdom, after the FCA restricted its local partner from approving crypto promotions.

The FCA continues to maintain strict regulatory oversight over the crypto industry, stating that consumer protection is its priority.

While the agency’s core rules on crypto marketing became effective on Oct. 8, 2023, the regulatory watchdog gave a three-month extension to allow firms to “introduce features that require greater technical development,” giving them until Jan. 8, 2024.