Revolut, a prominent fintech company known for its cryptocurrency services, will no longer offer these options to its American clients starting in September. The decision comes as a result of regulatory uncertainty in the United States, the world’s largest economy. While customers will no longer be able to purchase cryptocurrencies from September 2, the ability to sell and hold digital assets will be disabled from October 3.
The lack of comprehensive rules imposed by US watchdogs on the domestic crypto sector has been a significant factor in Revolut’s decision. The Securities and Exchange Commission (SEC) has also been cracking down on industry giants like Binance and Coinbase, further adding to the regulatory uncertainty. Revolut’s US banking partner was involved in the difficult decision to suspend access to cryptocurrencies through the platform in the US.
This move by Revolut highlights the ongoing concerns regarding the regulatory environment and the uncertainties surrounding the crypto market in the United States. Notably, prominent figures in the crypto space, including Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire, have previously expressed their concerns that the lack of appropriate rules in the American digital asset industry could drive investors and capital away from the US.
Revolut is not the only company taking such action due to regulatory reasons. GameStop, a gaming merchandise retailer, recently announced that it will suspend its crypto program as well. GameStop will remove its iOS and Chrome Extension wallets starting in November. Users are advised to access their secret passphrase by October 1 to ensure they can recover their account in any compatible wallet.
These developments highlight the challenges faced by companies operating in the US crypto market. The absence of clear regulations has created uncertainty, leading to companies like Revolut and GameStop making difficult decisions to suspend their crypto services. It remains to be seen how the regulatory landscape will evolve and whether comprehensive rules will be implemented to provide clarity and stability for the crypto industry in the United States.