Revolut Halts Crypto Purchases for UK Businesses


Revolut will temporarily halt certain cryptocurrency
services for its business customers in the UK in response to upcoming regulatory
changes by the Financial Conduct Authority (FCA).

According to a report by City A.M., the fintech firm disclosed its decision to suspend the ability to purchase cryptocurrencies via
Revolut Business starting January 3, 2024. This is in accordance with the FCA’s new
guidelines on crypto assets.

Recently, the FCA signaled imminent guidelines, compelling Revolut to pause the purchasing option
for cryptocurrencies through Revolut Business. However, business customers retain the ability to hold and sell
crypto. Conversely, the company’s retail customers are not affected.

The FCA’s impending regulations involve provisions
aimed at protecting investors in the volatile digital asset space. Central to
these rules is the introduction of a mandatory 24-hour “cooling off
period” for investors engaging in crypto transactions.

Additionally, incentives like “refer a
friend” bonuses will be banned. This step seeks to mitigate potential
speculative behavior in the market. Scheduled to be enforced for registered
crypto firms from January 8, 2024, the FCA has granted a transition period for
companies to make the necessary adjustments.

Revolut Joins Major Firms in Regulatory Compliance

Revolut is not the only company in the crypto industry adjusting its operations ahead of the FCA’s new requirements. In August, PayPal announced a temporary suspension
of its crypto sales in the region. This decision was effected on October
1. The company announced to its users that
they could hold or sell their existing crypto assets.

PayPal’s decision aligned with a growing trend among
financial institutions in the UK. Major banks like HSBC, NatWest, and First
Direct have already imposed daily transaction limits on cryptocurrencies,
echoing a broader industry shift toward regulatory compliance.

Last month, the FCA updated its guidance for crypto asset firms in response to new
regulations governing crypto promotions targeting consumers in the UK.

FCA’s Requirements

Despite the regulations having been in place for a while,
numerous firms are reportedly struggling to comply with its
requirements. This has led the FCA to introduce fresh guidelines. The FCA’s updated guidance aids firms to align their marketing activities with
the recently implemented “Consumer Duty” act.

Lucy Castledine, the FCA’s Director of Consumer
Investments, underscored this integration of the new crypto marketing rules
with existing high-risk investment regulations. This step showcases a concerted effort
toward consumer protection, Finance Magnates reported.

Revolut will temporarily halt certain cryptocurrency
services for its business customers in the UK in response to upcoming regulatory
changes by the Financial Conduct Authority (FCA).

According to a report by City A.M., the fintech firm disclosed its decision to suspend the ability to purchase cryptocurrencies via
Revolut Business starting January 3, 2024. This is in accordance with the FCA’s new
guidelines on crypto assets.

Recently, the FCA signaled imminent guidelines, compelling Revolut to pause the purchasing option
for cryptocurrencies through Revolut Business. However, business customers retain the ability to hold and sell
crypto. Conversely, the company’s retail customers are not affected.

The FCA’s impending regulations involve provisions
aimed at protecting investors in the volatile digital asset space. Central to
these rules is the introduction of a mandatory 24-hour “cooling off
period” for investors engaging in crypto transactions.

Additionally, incentives like “refer a
friend” bonuses will be banned. This step seeks to mitigate potential
speculative behavior in the market. Scheduled to be enforced for registered
crypto firms from January 8, 2024, the FCA has granted a transition period for
companies to make the necessary adjustments.

Revolut Joins Major Firms in Regulatory Compliance

Revolut is not the only company in the crypto industry adjusting its operations ahead of the FCA’s new requirements. In August, PayPal announced a temporary suspension
of its crypto sales in the region. This decision was effected on October
1. The company announced to its users that
they could hold or sell their existing crypto assets.

PayPal’s decision aligned with a growing trend among
financial institutions in the UK. Major banks like HSBC, NatWest, and First
Direct have already imposed daily transaction limits on cryptocurrencies,
echoing a broader industry shift toward regulatory compliance.

Last month, the FCA updated its guidance for crypto asset firms in response to new
regulations governing crypto promotions targeting consumers in the UK.

FCA’s Requirements

Despite the regulations having been in place for a while,
numerous firms are reportedly struggling to comply with its
requirements. This has led the FCA to introduce fresh guidelines. The FCA’s updated guidance aids firms to align their marketing activities with
the recently implemented “Consumer Duty” act.

Lucy Castledine, the FCA’s Director of Consumer
Investments, underscored this integration of the new crypto marketing rules
with existing high-risk investment regulations. This step showcases a concerted effort
toward consumer protection, Finance Magnates reported.



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