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Revolut ends US crypto services amid regulatory uncertainty

Monday 7 August 2023 14:56 CET | News

Revolut has announced it will discontinue its US crypto services due to regulatory uncertainty, impacting 1% of global clientele.

After making known its intention to partially remove specific digital assets from its platform, Revolut has opted to discontinue all cryptocurrency services for its US customer base. According to a statement provided to Cointelegraph, the neobank will collaborate with its US banking partner to gradually deactivate access to cryptocurrencies on its platform, starting on 2 September 2023. 

onsequently, the complete cessation of crypto services will occur on 3 October, as confirmed by a spokesperson from the online bank. The spokesperson highlighted that the capability to engage in cryptocurrency transactions, such as buying, selling, or holding, will be completely disabled for US customers through Revolut.

The representative emphasized that the withdrawal from the US market would only impact a relatively small portion, roughly 1%, of the overall global clientele in the company's crypto business. Additionally, it was stressed that Revolut's non-cryptocurrency operations will persist in the United States. The spokesperson acknowledged the potential disappointment arising from this resolution.

Revolut has announced it will discontinue its US crypto services due to regulatory uncertainty, impacting 1% of global clientele.

 

US customers involved in cryptocurrency activities will soon receive comprehensive details about the suspension through communication from Revolut via email. The statement further clarified that a dedicated support team would be available through the in-app chat to address any queries or concerns raised by US customers engaged in crypto transactions.

Previously Revolut US had announced intentions to remove certain cryptocurrencies, including Cardano's ADA, in late June. The process of delisting was initially planned for September. As of late July, Revolut had supported around 30 cryptocurrencies in the US.

Recent times have witnessed several major cryptocurrency services facing the challenge of maintaining operations for their US clients. Crypto.com, another notable global crypto exchange, announced the suspension of services for institutional clients in the US during mid-June.

Losing USD 20 million from payment system exploitation in the US

In July the financial superapp suffered a USD 20 million loss from an exploit in the payment system in the US. According to sources, discrepancies between US and European payment systems led to unauthorised refunds, causing the loss. The fintech managed to recover roughly USD 23 million but still incurred a net loss of around USD 20 million, taken directly from the company rather than customer deposits.

Beginning in early 2022, criminal groups exploited the payment problem discovered in late 2021. The tactic involved making failed high-cost purchases, later withdrawing cash via ATMs. The problem reportedly surfaced when a US partner bank who notified Revolut of a cash shortage.


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Keywords: fintech, online banking, cryptocurrency, super app, digital wallet
Categories: DeFi & Crypto & Web3
Companies: Revolut
Countries: United States
This article is part of category

DeFi & Crypto & Web3

Revolut

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