Following a crackdown on crypto advertising in the UK, Revolut will suspend some crypto services for UK business customers from early next year.
The suspension will prevent Revolut's UK business customers from purchasing crypto assets through Revolut for a limited period from January 3rd.
However, it is possible to hold or sell cryptocurrencies through Revolut Business.
This suspension does not affect Revolut's retail customers, who can continue to buy and sell cryptocurrencies.
Revolut did not say how long the suspension would last, but said it would continue until Revolut's cryptocurrency offering complies with the new rules.
Earlier this year, the UK's financial regulator, the FCA, announced restrictions on advertising of cryptocurrencies such as Bitcoin and Ethereum to UK customers.
The new rules state that a cryptocurrency company's marketing must be “clear, fair and not misleading,” include prominent risk warnings, and not inappropriately encourage people to invest. Contains a request. It also includes a 24-hour cooling-off period for investors and a ban on “refer-a-friend” bonuses.
Companies that fail to comply with the rules could face up to two years in prison.
Revolut told customers:
“The UK regulator, the Financial Conduct Authority (FCA), has issued new requirements for crypto-asset investments, set to come into effect on 8 January 2024.
These requirements are intended to enhance the customer journey and provide additional protection to new and existing investors in crypto assets.
As a result, current business cryptocurrency offerings will need to be adjusted to meet all new requirements. ”
In its advice to its crypto business customers, Revolut said customers “don't need to do anything unless they wish to make different arrangements regarding cryptocurrencies”.
“We will notify you again when we lift the suspension of virtual currency purchases.
“Our team is working hard to ensure compliance with upcoming regulations and provide the best customer experience.”
Payments giant PayPal previously announced it would suspend some cryptocurrency services until it complies with new rules.
Other companies, such as ByBit and Luno, which are not registered with the FCA, also said they had suspended their services.
Lead image: Revolut. Photo: No credit.
