Revolut is crippling its ‘crypto’ services in the UK

The digital bank plans to suspend some cryptocurrency services for its corporate clients in the United Kingdom following strict new rules from the country’s regulator, according to an internal email, Bloomberg reported.

The neobank, which was registered with the Financial Conduct Authority (FCA) to be able to offer digital asset services in September, has chosen to freeze its cryptocurrency sourcing services with the UK firms it works with.

The procedure will be implemented from January 3, 2024.

Although they will not be able to create or expand their positions in digital assets, Revolut will still allow them to hold or sell cryptocurrencies they already have in their portfolios.

Many entities that provided cryptocurrency services were forced to withdraw from the sector due to the requirements of Financial Conduct Authority (FCA) regulations that came into force in October. Among other things, the supervisor requires significant changes to its trading platforms that allow, for example, a 24-hour response period between a customer’s purchase of cryptocurrencies and clear warnings about the risks to which this investment is exposed.

Along with Revolut, Bybit and PayPal also pulled some of their cryptocurrency services after strict regulation came into effect.

Money transfers

Revolut, one of Spain’s most popular neobanks with more than two million customers, reported yesterday that remittances to Latin America are growing this year at a rate of 55%. The countries that represent the largest volume are Mexico, Colombia and Brazil.

In the case of Rio, the increase is 111%. Revolut launched its app in Brazil in May. It is the first country in Latin America where it started working with the full version. Transfers between Revolut users are free, but an additional fee of between 1% and 3% of the volume sent applies if the funds go to a bank account.

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