Revolut Temporarily Halts Crypto Services in the UK Amidst FCA's Recent Advertising Regulations

Numerous players in the cryptocurrency sector are swiftly adapting to the regulatory landscape shaped by the Financial Conduct Authority's (FCA) promotional regulations, which took effect in October. This regulatory shift has prompted several companies to temporarily suspend their services in order to align with the new guidelines. One notable participant, Revolut, a digital bank that secured registration with the UK's primary digital asset regulator, the FCA, in September of the previous year, is reportedly preparing to suspend specific crypto services tailored for its UK-based business clients.

According to a confidential source, beginning January 3, 2024, Revolut Business users in the UK will face restrictions on purchasing cryptocurrencies, although they will still be able to retain and sell existing holdings. The decision, initially disclosed by City A.M., is a strategic response to comply with the FCA's updated requirements, particularly the "back end" Direct Offer Financial Promotion (DOFP) rules, set to be enforced on January 8, 2023.

This temporary suspension serves as a proactive measure by Revolut, allowing the necessary time for adjustments to its current suite of crypto offerings for business clients. The aim is to ensure seamless compliance with the impending regulatory changes outlined by the FCA. A source from Bitsday emphasized that the pause is a calculated move designed to meet the new FCA rules cohesively.

In the wake of the FCA's promotional regulations, several cryptocurrency firms have been compelled to withdraw their services, responding to the rules initiated in October. The FCA provided a window for firms to request a three-month extension for the implementation of necessary adjustments.

Following this industry trend, both crypto exchange Bybit and payments giant PayPal have recently opted to withdraw specific services from the UK in response to these regulatory changes. Conversely, Luno, another prominent entity, chose a distinct approach by restricting certain clients from investing in cryptocurrencies through its platform. This dynamic shift in the cryptocurrency landscape underscores the ongoing efforts of industry participants to navigate and comply with evolving regulatory frameworks, thereby ensuring a secure and compliant environment for users.

Read More: Cryptocurrency Chronicles: The Rise of Digital Finance in the UK