Revolut Slams Brakes on Crypto Products in the UK

Businesses constantly adapt to align with the latest regulatory frameworks. Revolut, a prominent player in the fintech sector, has recently taken a significant step. It will suspend certain cryptocurrency services for its business users. This move is a direct response to the new regulations on financial promotions introduced in the United Kingdom.

A Shift in Crypto Regulations

As of October 8, 2023, the UK has enforced stringent laws governing the promotion of crypto assets. Any firm aiming to market these assets must either be registered or authorized by the Financial Conduct Authority (FCA) or have their marketing endeavors greenlighted by an authorized entity. 

The FCA’s regulations are crystal clear: promotions must be transparent, equitable, and non-misleading. They should come with conspicuous risk warnings and avoid encouraging investment through inappropriate means.

Revolut has to fully comply with these new guidelines. The firm communicated to its clientele that purchasing cryptocurrencies for UK businesses would be on hold starting January 3, 2024. Despite this, businesses with existing crypto holdings can continue to sell or maintain them. 

Revolut reassures its customers, promising to update them about when this temporary suspension will be lifted. The company is dedicated to aligning with the impending regulations and enhancing the overall customer experience.

Revolut Isn’t the Only One Halting Services

Revolut is one of many entities grappling with these new regulatory demands. On the very day the regulations came into effect, the FCA issued 146 alerts concerning crypto asset promotions. Subsequently, the regulatory body has issued additional guidance to assist crypto firms in achieving compliance. This guidance elaborates on how firms with authorization should integrate Consumer Duty into their marketing strategies.

It’s worth noting that PayPal, a titan in the payments industry, has also temporarily halted some of its crypto services in the UK, pending compliance with the new rules.

The impact of these regulations extends beyond just Revolut and PayPal. Other crypto firms like ByBit and Luno, not registered with the FCA, have also halted their services. That indicates a broader trend in the industry, where compliance with regulatory standards is becoming increasingly pivotal.

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