Revolut obtained registration with the Financial Conduct Authority (FCA) to offer cryptocurrency services in the UK in September of the previous year, and it is now set to suspend specific crypto services for its UK business clients. This move is in response to the new regulations introduced by the FCA governing promotions, which took effect in October 2023. Starting 3 January 2024, Revolut Business clients in the UK will be unable to purchase crypto through the platform, while retaining the ability to hold and sell existing holdings according to Coindesk.
The decision to suspend these services is attributed to Revolut's need to align its business crypto offerings with the upcoming Direct Offer Financial Promotion (DOFP) rules, a set of regulations imposed by the FCA that will be effective from 8 January 2023. The pause is intended to provide the company with sufficient time to ensure compliance with the new requirements outlined in the DOFP rules.
This action follows a broader trend in the cryptocurrency industry, where various firms have adjusted their services to conform to the FCA's promotions rules. These regulations prompted companies to apply for a three-month extension to implement the necessary adjustments. Notable entities such as Bybit and PayPal have recently withdrawn specific services from the UK in response to these regulatory changes. Additionally, Luno opted to restrict certain clients from investing in cryptocurrency through its platform.
In November 2023, Revolut found itself under fire from of Germany-based Allianz, which filed a lawsuit against the neobank for GBP 10.4 million, alleging that it broke its obligations over a travel insurance deal.
The agreement between Revolut and the UK branch of Allianz Worldwide Partners allowed the neobank to include a collective insurance policy for its Premium and Metal account holders in the UK, Isle of Man, Jersey, and Guernsey. Moreover, the deal was set for four years after being implemented in April 2022.
However, in May 2023, Revolut informed Allianz that its customers would receive travel insurance from a different provider as of June 2023, specifically from Cowen Insurance, with the cover being arranged by Cover Genius. Revolut also mentioned that from June 2023 and for the foreseeable future no customers would be reported to Allianz, with all users being migrated to XCover.
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