Revolut suspends crypto services for UK business customers due to new FCA rules

London-based digital bank Revolut announced on Monday that it will suspend cryptocurrency purchases for Revolut Business users from 2024. This move is in response to the UK’s Financial Conduct Authority (FCA)’s new crypto regulations, which are designed to protect investors from risky crypto investments.

According to an email sent by City A.M. eseen, Revolut has informed its UK business customers that they will no longer be able to purchase cryptocurrencies such as Bitcoin and Ethereum through Revolut Business from January 3, 2024. While stocks can still be sold or transferred, the popular trading feature will be removed.

Revolut responds to tough new UK crypto rules

Revolut opened cryptocurrency trading for UK customers in September 2022 after registering with the FCA. However, strict new rules imposed by the regulator are forcing the company and others to withdraw their services.

In October, the FCA Policy on Promoting Crypto Assets in came into force to curb misleading advertising and ensure appropriate risk disclosure . Strict requirements include a 24-hour cooling-off period after deposits, bold risk warnings throughout communications, and a ban on incentives such as “referral bonuses.”

To comply, Revolut and other major platforms such as crypto exchange Bybit and PayPal have decided to limit the availability of crypto purchases and trading specifically for UK customers. PayPal withdrew its crypto service for UK users in August amid changing crypto regulations.

Some critics argued the FCA’s strict regulations could prove counterproductive.

“As history tells us, this has exactly the opposite effect and simply pulls people further away from the financial system,” tweeted Jason Deane, COO of Bitcoin mining company RenewaBlox .

Looks like @RevolutApp is the latest bank to 'suspend' #crypto services here in the UK due to the @TheFCA 's latest regs.
As history tells us, this has the exact opposite effect & simply moves people further away from the financial system. Fortunately with #bitcoin, the entire… pic.twitter.com/iw0uniVSKC

— Jason Deane (@JasonADeane) December 18, 2023

“Fortunately, with Bitcoin, the entire network can operate outside the existing financial system if necessary without being remotely affected.”

While the loss of direct purchase functionality will impact Revolut’s UK business customer base, the company assures it is working to meet the FCA’s requirements.

“These requirements aim to improve the customer experience and provide additional protection to new and existing crypto asset investors,” Revolut said in the email. “As a result, we need to adapt our current business crypto offering to ensure all new requirements are met.

For now, Revolut’s crypto features remain intact for UK retail investors. The change only affects business account holders, who will be required to use other platforms for crypto purchases starting in 2024.

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