US exodus as Revolut now ‘suspends’ crypto access in country amid regulatory uncertainty
Regulatory cloud in US prompts crypto hiatus for Revolut giving users until October to remove funds
Amid the evolving landscape of crypto regulation in the United States, financial technology company Revolut has announced it is “suspending” crypto services in the US.
A Revolut spokesperson told CryptoSlate, the company, together with its US banking partner, will suspend access to cryptocurrencies for its US customers starting Sept. 2, 2023, specifically,
“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US.”
This suspension will result in Revolut’s US customers being unable to place buy orders for cryptocurrencies. From Oct. 3, 2023, they will no longer be able to buy, sell, or hold any cryptocurrencies.
This decision comes after widespread uncertainty reflected in several other cryptocurrency exchanges tailoring their strategies.
US crypto regulatory hurdles
eToro has limited access to specific cryptocurrencies for its US users, citing regulatory developments as the primary cause.
Similarly, Coinbase is embroiled in a lawsuit with the Securities and Exchange Commission (SEC), pushing back against the notion that its assets and services qualify as investment contracts under securities law.
In the first quarter of 2023, Coinbase CEO Brian Armstrong and Gemini Co-Founder Cameron Winklevoss both commented that they had seriously considered pulling back from the US for the UK over the same issues.
At the time, Armstrong poured cold water on the idea of an imminent U.S. departure, saying this is only an option if U.S. regulatory clarity does not happen in “a number of years.” While Winklevoss commented, “In order to keep building our business and invest in hiring, we have to look elsewhere,” citing the UK as a potential second headquarters for operations.
Further, crypto exchange Nexo exited the US, citing regulatory uncertainty, in late 2022.
Uphold also ended staking for US customers in March this year following guidance from the SEC.
Revolut exit to affect limited users
The Revolut spokesperson clarified that this suspension will affect less than 1% of its global crypto customers, stating,
“This suspension does not affect Revolut users outside of the US in any way, and impacts less than 1% of Revolut’s crypto customers globally. Revolut customers in all other markets can continue to sign up and enjoy using our crypto services.”
In this challenging interaction between cryptocurrency platforms and regulatory agencies, the company’s move mirrors a broader trend of digital currency providers navigating the complex waters of regulatory scrutiny.
The Revolut spokesperson confirmed,
“Crypto customers in the US will find all relevant information regarding the suspension in the email communication they received from Revolut.
Our dedicated support team is available to address any concerns and questions our US crypto customers may have via our in-app chat.”
Revolut’s decision underscores the broader implications of US regulatory uncertainty on the global crypto market.