The latest reports that Revolut is restricting its cryptocurrency offering to UK companies has raised many questions about the UK's plans to embrace the digital currency industry. Meanwhile, with the newly introduced Market for Cryptocurrency (MiCA) regulations, the neighboring European Union is attracting many international cryptocurrency companies.
Revolut has not made any official confirmation; City AM reported that it is suspending the ability to purchase cryptocurrencies for business-to-business customers on Revolut Business, citing an email from the fintech company.
Revolut confirmed the authenticity of the report, stating: “These requirements are intended to enhance the customer journey and provide additional protection for new and existing investors in crypto assets. As a result, current business crypto We need to adjust our currency offerings.”
of fintech The company did not elaborate on the circumstances behind this decision, but the report explains that the decision is in line with future requirements. Financial Conduct Authority (FCA) ). Revolut will restrict its services on January 3rd, and the FCA rules will come into effect on January 8th.
Interestingly, this limit only applies to business accounts, allowing UK retail customers using Revolut to buy and sell cryptocurrencies without interruption.
Cryptocurrency friendly EU
Revolut restricts cryptocurrency services in the UK, while international companies move into the European Union to offer cryptocurrencies. US-based Robinhood recently began trading cryptocurrencies in the EU under a Lithuanian licensed entity.
The EU is at the forefront when it comes to cryptocurrency regulation. The pan-European legislative body has already approved the MiCA regulation, which is expected to come into force next year. Although MiCA has attracted a lot of criticism due to some strict reporting requirements, crypto companies are optimistic about the rules.
Coinbase is another major company that has acquired multiple licenses to strengthen its presence in the EU. It is regulated in Germany, Ireland, the Netherlands, Spain and Italy. The Nasdaq listed exchange also positions Germany as a talent hub and Ireland as a major global regulatory hub.
Other companies such as eToro, Binance, Crypto.com, and many other large and small brands have obtained cryptocurrency registration with European regulators to continue operating on the continent.
Has the UK's cryptocurrency plan failed?
The UK is an important market when it comes to financial services. London is considered the European center for banks and other financial companies. The Brexit shutdown has forced many of these companies to establish separate bases for their European operations, but this change has done little to weaken London's dominance. Meanwhile, British lawmakers are pushing to make the country a fintech hub. However, the FCA remains the center of all cryptocurrency regulation in the country.
The FCA updated its crypto marketing rules in early November, making changes to crypto promotions targeted at UK consumers. The guidance, which will come into force from 8 January, clarifies how licensed businesses should incorporate consumer duty laws into their promotional activities. The new rules require a 24-hour “cooling-off period” for investors. Additionally, incentives such as referral bonuses are prohibited.
Revolut is one of many companies whose services will be suspended due to these rules. Paypal has temporarily stopped offering cryptocurrencies in the country. Similar to Paypal, Revolut allows users to hold or sell their cryptocurrencies by simply stopping purchases. In contrast to PayPal, Revolut only brings restrictions to business customers.
Revolut focuses on regulatory requirements
Meanwhile, Revolut is in the process of obtaining a banking license in the UK. The fintech currently operates as a payment institution in the country, its largest market. The company made several structural changes to its business to overcome licensing obstacles and applied for a license in 2021.
The UK is one of the many markets where Revolut has restricted its cryptocurrency offering. Earlier this year, the fintech's US arm stopped offering all crypto services, citing the country's tough regulatory environment. Revolut also offers cryptocurrencies in the EU, but users there will not be able to transfer their crypto holdings from the platform.
The latest reports that Revolut is restricting its cryptocurrency offering to UK companies has raised many questions about the UK's plans to embrace the digital currency industry. Meanwhile, with the newly introduced Market for Cryptocurrency (MiCA) regulations, the neighboring European Union is attracting many international cryptocurrency companies.
Revolut has not made any official confirmation; City AM reported that it is suspending the ability to purchase cryptocurrencies for business-to-business customers on Revolut Business, citing an email from the fintech company.
Revolut confirmed the authenticity of the report, stating: “These requirements are intended to enhance the customer journey and provide additional protection for new and existing investors in crypto assets. As a result, current business crypto We need to adjust our currency offerings.”
of fintech The company did not elaborate on the circumstances behind this decision, but the report explains that the decision is in line with future requirements. Financial Conduct Authority (FCA) ). Revolut will restrict its services on January 3rd, and the FCA rules will come into effect on January 8th.
Interestingly, this limit only applies to business accounts, allowing UK retail customers using Revolut to buy and sell cryptocurrencies without interruption.
Cryptocurrency friendly EU
Revolut restricts cryptocurrency services in the UK, while international companies move into the European Union to offer cryptocurrencies. US-based Robinhood recently began trading cryptocurrencies in the EU under a Lithuanian licensed entity.
The EU is at the forefront when it comes to cryptocurrency regulation. The pan-European legislative body has already approved the MiCA regulation, which is expected to come into force next year. Although MiCA has attracted a lot of criticism due to some strict reporting requirements, crypto companies are optimistic about the rules.
Coinbase is another major company that has acquired multiple licenses to strengthen its presence in the EU. It is regulated in Germany, Ireland, the Netherlands, Spain and Italy. The Nasdaq listed exchange also positions Germany as a talent hub and Ireland as a major global regulatory hub.
Other companies such as eToro, Binance, Crypto.com, and many other large and small brands have obtained cryptocurrency registration with European regulators to continue operating on the continent.
Has the UK's cryptocurrency plan failed?
The UK is an important market when it comes to financial services. London is considered the European center for banks and other financial companies. The Brexit shutdown has forced many of these companies to establish separate bases for their European operations, but this change has done little to weaken London's dominance. Meanwhile, British lawmakers are pushing for the country to become a fintech hub. However, the FCA remains the center of all cryptocurrency regulation in the country.
The FCA updated its crypto marketing rules in early November, making changes to crypto promotions targeted at UK consumers. The guidance, which will come into force from 8 January, clarifies how licensed businesses should incorporate consumer duty laws into their promotional activities. The new rules require a 24-hour “cooling-off period” for investors. Additionally, incentives such as referral bonuses are prohibited.
Revolut is one of many companies whose services will be suspended due to these rules. Paypal has temporarily stopped offering cryptocurrencies in the country. Similar to Paypal, Revolut allows users to hold or sell their cryptocurrencies by simply stopping purchases. In contrast to PayPal, Revolut only brings restrictions to business customers.
Revolut focuses on regulatory requirements
Meanwhile, Revolut is in the process of obtaining a banking license in the UK. The fintech currently operates as a payment institution in the country, its largest market. The company made several structural changes to its business to overcome licensing obstacles and applied for a license in 2021.
The UK is one of a number of markets where Revolut has limited cryptocurrency offerings. Earlier this year, the fintech's US arm stopped offering all crypto services, citing the country's tough regulatory environment. Revolut also offers cryptocurrencies in the EU, but users there will not be able to transfer their crypto holdings from the platform.
