Revolut Business Pauses Crypto Purchases for UK Clients Ahead of Regulatory Shift

Revolut is set to temporarily suspend cryptocurrency purchases on its UK business platform at the onset of the new year. The move is in response to impending regulatory changes by the Financial Conduct Authority (FCA), aimed at tightening rules on crypto promotions. Starting January 3, 2024, UK business customers will be unable to buy crypto assets, but holding and selling activities will continue uninterrupted.

The decision underscores Revolut’s commitment to aligning with the FCA’s stringent regulations, characterized by warnings about crypto risks, a ban on referral bonuses, and a cooling-off period for first-time investors. The FCA’s rules, initially slated for October 8, were extended to January 8, 2024, due to compliance challenges. Revolut is among several firms affected by these regulations, reflecting the broader industry shift in response to the FCA’s evolving framework.

This move follows a trend in the industry, with entities like Bybit and Binance making strategic adjustments to navigate the UK’s regulatory landscape. The FCA’s regulatory measures, deemed “tough,” seek to standardize crypto advertising with other high-risk investment products. Despite the temporary pause, Revolut reassures its business customers of ongoing efforts to ensure compliance, emphasizing its dedication to providing a secure and regulated crypto environment.

As the crypto industry grapples with evolving regulations, Revolut’s decision aligns with broader efforts to balance innovation with user protection. The fintech giant’s strategic pause reflects the complex dynamics shaping the crypto landscape and highlights the importance of adapting to regulatory changes for sustained industry growth.