Multinational digital bank and payments platform Revolut has apparently placed some restrictions on its cryptocurrency services for UK businesses, according to City A.M.
An email sent to Revolut customers and viewed by City A.M, which stated that Revolut had confirmed the authenticity of the communication without providing comment, updated the platform’s users of a pause in crypto services.
The email explained that Revolut was initiating the changes to allow more time to adjust its business to meet Financial Conduct Authority (FCA) rules on cryptocurrency introduced back in October.
From 3 January 2024, Revolut users will not be able to buy cryptocurrency, although Revolut Business customers will still be able to hold and sell the assets and Revolut Retail customers ‘will be unaffected’.
The FCA was spurred into action to enhance its regulation of cryptocurrency following the high-profile collapse of prominent companies active in the space in recent years, most notably crypto-exchange FTX in November 2022.
A notable new rule introduced in October was a 24-hour cooling off period for consumers, with the FCA seeking to provide potential crypto investors with greater clarity on whether to move forward with their decision.
The rules mainly revolved around promotion and marketing with the aim of ensuring any communication between crypto exchanges or investment platforms and customers are ‘clear, fair and not misleading’.
The new promotion and marketing crypto rules are designed to be “clear, fair and not misleading” and are enforced to companies seeking to enter the UK no matter where they are based globally.
The FCA is also introducing a 24 hour cooling off period for consumers and investors to provide them with greater clarity on whether or not to invest in any form of cryptocurrency.
Revolut’s pause in some crypto activity comes as the London-based firm continues to work towards securing a UK banking licence, something which has eluded it for some time.
