Neobank Revolut will temporarily suspend cryptocurrency purchases on its business platform in the UK starting from the new year. The decision comes as the company aims to comply with new regulations set by the Financial Conduct Authority (FCA) regarding the promotion of cryptocurrencies. While purchasing will be halted, customers will still be able to hold and sell their existing crypto assets without interruption.
The pause in crypto purchases is necessary for Revolut to ensure that it meets all the requirements outlined by the FCA, which will come into effect on January 8, 2024. In a message to its customers, Revolut Business stated that adjustments to its current crypto offering are needed to comply with the new rules. The FCA’s regulations, announced in June, aim to align crypto advertising with other high-risk investment products.
Revolut is not the only firm affected by these regulations, as several others have also been impacted. The new requirements include providing customer warnings about the risks associated with crypto investments, banning bonuses for referring new customers, and implementing a “cooling-off period” that delays the placement of orders for first-time investors.
The January 8 deadline for compliance was extended from October 8 due to anticipated challenges in meeting the requirements. The FCA had observed low engagement from many crypto firms in September and had recorded over 200 breaches of the rules by October 25. Additional guidance on the regulations was issued by the FCA in November.
As a result of these regulations, Bybit announced its departure from the UK market in September, while NMarinade Finance, based on the Solana blockchain, began blocking UK users. Binance, another major player in the crypto industry, halted customer onboarding in the country in October after its compliance partner faced issues with the regulations.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇬🇧 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Jason Deane |
| Companies | Bybit, Binance, Revolut, OKX, Financial Conduct Authority (FCA) |
| Currencies | Bitcoin |
| Securities | None |
