Revolut will shut down its crypto trading operations in the US, citing regulatory uncertainty. Previously it had to delist three cryptocurrencies as the US Securities and Exchange Commission (SEC) classified them as securities.
Firms are giving up on their crypto businesses in the US due to the country’s strict stance against the asset class.
Revolut Joins Slew of Firms Abandoning Crypto Business
According to Bloomberg, the UK-based financial services platform Revolut will no longer allow its US customers to buy crypto from Sept. 2.
Moreover, the platform will revoke US customers’ access to their crypto assets in October by automatically liquidating them at the market price on that particular day. Hence, users will need to liquidate their crypto assets at the best suitable price within the deadline.
However, Revolut users in other jurisdiction may continue to use the platform’s crypto trading services. This development impacts around 1% of Revolut’s total crypto users.
Revolut has been forced to shut down its operations due to regulatory challenges in the US. A spokesperson said:
“As a result of the evolving regulatory environment and the uncertainties around the crypto market in the US, we’ve taken the difficult decision, together with our US banking partner, to suspend access to cryptocurrencies through Revolut in the US.”
Revolut has been facing hurdles in the US market for some time. Last month, the firm had to delist three crypto assets – Solana (SOL), Cardano (ADA), and Polygon (MATIC) due to the SEC’s crackdown on altcoins.
These altcoins were classified as securities in a lawsuit against Binance and Coinbase. The SEC named over 67 crypto assets as securities.
Click here to learn more about the benefits and drawbacks of crypto regulation
SEC chair Gary Gensler believes the crypto industry is “a field rife with fraud, rife with hucksters.” Due to Gensler’s war against the crypto ecosystem, other firms, such as Paxful and Bittrex, have also had to wrap up operations in the US.
The development brought more criticism of the SEC and the US regulatory landscape. An X (Twitter) user wrote, “The SEC is just scamming all US citizens out of crypto participation”
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