Digital bank Revolut is shutting down cryptocurrency services for its American users, citing uncertain regulations and crypto market instability in the United States.
“Due to the shifting regulatory environment and uncertainties surrounding crypto in the U.S., we’ve made the tough decision with our U.S. bank partner to stop offering cryptos to U.S. customers,” Revolut said in a statement Friday.
Starting September 2, Revolut’s U.S. app will block the ability to buy cryptocurrencies. Then on October 3, all trading functions will be completely disabled for American account holders.
Revolut noted less than 1% of its global crypto customers will be impacted. The company provides trading in over 50 digital currencies to clients in Europe.
The move highlights the murky regulatory waters fintech companies face when expanding crypto offerings across different jurisdictions. Revolut determined the risks outweighed the benefits for its small U.S. crypto user base.
Rival European fintechs may face similar pressures as American regulations evolve. The SEC argues most cryptocurrencies are securities requiring registration.
Revolut first rolled out crypto trading in 2017 and has since expanded services amid growing retail investor interest. But the U.S. represents a uniquely challenging regulatory environment.
