Revolut is gearing up for a temporary suspension of crypto purchases for its Business customers based in the United Kingdom.
Commencing on January 3, 2024, this suspension is in direct response to forthcoming regulatory changes set to be enforced by the Financial Conduct Authority (FCA) from January 8, 2024.
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While this move will impact crypto buying, it's important to note that customers will still retain the ability to hold and sell digital assets seamlessly during this period, ensuring minimal disruption to their existing holdings.
The FCA's upcoming regulations represent a significant shift in the crypto landscape within the UK. These new rules are designed to standardize crypto advertising practices and, more crucially, enhance consumer protection.
Among the key requirements are mandatory risk warnings for individuals considering crypto investments, a prohibition on offering referral bonuses, and the introduction of a "cooling-off period" aimed at delaying the execution of orders for first-time crypto investors.
Originally slated for compliance by October 8, 2024, the FCA extended the deadline to January 8, 2024, in light of anticipated challenges in aligning with the new rules. By October 25, 2024, the regulatory authority had already documented over 200 rule breaches, prompting further guidance in November.
Revolut Business is not the sole entity grappling with these regulatory shifts. Notably, Bybit exited the UK market in September, while NMarinade Finance, operating on the Solana blockchain, initiated measures to block UK-based users.
Furthermore, Binance temporarily ceased onboarding new customers in the UK in October, a decision precipitated by complications involving its compliance partner, Rebuildingsociety.com.
This move by Revolut Business serves as a testament to the evolving regulatory landscape surrounding crypto in the UK and the broader financial industry's dedication to adapting to these changes while prioritizing consumer safeguards.
