Revolut Pulls Plug On Crypto Trading In US, Blames 'Changing Regulatory Climate'

Banking application Revolut Ltd. will cease its cryptocurrency trading services for customers in the U.S. due to regulatory uncertainties and market volatility.

What Happened: The London-based fintech company will disable U.S. users' cryptocurrency purchasing capabilities on its app from Sep. 2. By October, all access to crypto holdings will be completely suspended, a company spokesperson said.

The spokesperson stated, "Given the changing regulatory climate and the uncertainties surrounding the US crypto market, we, in conjunction with our US banking partner, have made the tough decision to suspend access to cryptocurrencies through Revolut in the US."

Earlier this year, Revolut, which operates under a Lithuanian banking license, had already removed several cryptocurrencies from its U.S. trading list after they were identified as unregistered securities

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The decision will affect less than 1% of Revolut's global crypto clientele.

Why It Matters: Regulatory bodies such as the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission continue to take action against cryptocurrencies in the U.S.

There are also several pending lawsuits against crypto firms for allegedly violating regulations, and traditional financial institutions have been warned about the risks associated with engaging with the crypto sector.

According to Revolut's website, its U.S. banking partner is Metropolitan Commercial Bank, and its crypto services are facilitated by Bakkt Holdings Inc.'s Apex Crypto division.

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