Revolut Suspends Crypto Services for UK Business Clients Due to New FCA Rules
London-based digital bank Revolut announced on Monday that it will be suspending the ability for Revolut Business users to purchase cryptocurrencies starting in 2024. The move comes in response to new crypto regulations enacted by the United Kingdom’s Financial Conduct Authority (FCA) to protect investors from risky crypto investments.
According to an email reviewed by City A.M., Revolut informed UK business clients that it will no longer allow them to buy cryptocurrencies like Bitcoin and Ethereum via Revolut Business beginning January 3, 2024. While holdings can still be sold or transferred out, the popular trading feature will be revoked.
Revolut initially enabled cryptocurrency trading for UK customers in September 2022 after registering with the FCA. Tough new rules imposed by the regulator are forcing the company and others to withdraw services, however.
The FCA’s crypto asset promotions policy took effect in October to curb misleading advertising and ensure appropriate risk disclosures. Stringent requirements include a 24-hour cooling-off period following deposits, bold risk warnings across communications, and a ban on incentives such as “refer a friend” bonuses.
To comply, Revolut and other major platforms like crypto exchange Bybit and PayPal have decided to limit the availability of crypto buying and trading specifically for UK customers. PayPal withdrew its crypto service for British users in August amid the changing crypto regulations.
Some critics argued the FCA’s stringent regulations could prove counterproductive.
“As history tells us, this has the exact opposite effect & simply moves people further away from the financial system,” Bitcoin mining company RenewaBlox COO Jason Deane tweeted. “Fortunately with
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