Revolut pauses crypto services for UK business customers

abdelaziz Fathi

British fintech firm Revolut is set to pause some of its cryptocurrency services for UK business customers starting January 3, 2024. This decision comes in response to the UK’s tightened regulations on cryptocurrency advertising and marketing.

Revolut

Revolut’s UK business clients will not be able to purchase crypto assets through Revolut Business during this pause. However, they will retain the ability to hold or sell their existing crypto assets through the platform. Notably, this suspension does not affect Revolut’s retail customers, who will still have full access to buy and sell cryptocurrencies.

The restrictions include a halt on onboarding new customers and limiting existing customers to holding and selling functionality only. Revolut is also restricted from expanding into crypto exchange services, initial coin offerings (ICOs), staking, P2P exchange, and DeFi activities such as lending and borrowing.

The duration of this pause remains unspecified, with Revolut stating it will continue until their crypto services align with the new regulatory framework. These changes are part of broader curbs set by the UK’s Financial Conduct Authority (FCA) on cryptocurrency advertising, targeting popular digital assets like Bitcoin and Ethereum.

The FCA’s new rules, which took effect in October, demand crypto firms to ensure their marketing is “clear, fair, and not misleading,” incorporating prominent risk warnings and eliminating incentives like “refer a friend” bonuses. A 24-hour cooling-off period for new investors and stringent advertising guidelines are also part of the regulations.

The new regulations also require firms promoting crypto products or services to include a clear risk warning in their promotions and verify that individuals have the necessary knowledge and experience to invest in cryptocurrencies. Non-compliance could result in penalties, including up to two years in prison.

“The Financial Conduct Authority (FCA), our UK regulator, has issued new requirements for crypto asset investments, which will come into effect on 8 January 2024. These requirements aim to enhance the customer journey and provide additional protection for new and existing investors of crypto assets. As a result, we’ll need to adjust our current Business crypto offering to make sure all of the new requirements are met,” Revolut told its customers

The impact of these regulations is already visible in the UK’s crypto market, with firms like Bybit and PayPal withdrawing certain services. Luno, another prominent crypto company, has restricted some clients from investing in cryptocurrencies on its platform.

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