Revolut, a $33 billion startup, is ending its service to U.S. customers due to the changing regulatory environment.

Revolut, a $33 billion startup, is ending its service to U.S. customers due to the changing regulatory environment.

The Great Crypto Exit: Revolut Bids Farewell to U.S. Customers

Revolut, the U.K.-based fintech firm with a staggering valuation of $33 billion in its last funding round, has dropped the bombshell on its U.S.-based customers. In an email, Revolut informed them that they will no longer be able to place buy orders for digital assets after September 2nd. Moreover, by October 3rd, access to Revolut’s crypto platform will be completely disabled, with any remaining tokens held by users liquidated at market prices. This drastic change in service will only affect U.S. users, impacting less than 1% of Revolut’s global customer base.

The decision to abandon the U.S. crypto market comes as a result of the evolving regulatory environment and uncertainties surrounding the crypto market in the country. In a statement, a spokesperson for Revolut explained, “As a result of the evolving regulatory environment and the uncertainties around the crypto market in the U.S., we’ve taken the difficult decision, together with our U.S. banking partner, to suspend access to cryptocurrencies through Revolut in the U.S.”

This move by Revolut follows their recent restriction of U.S. customers’ access to native cryptocurrencies for the Solana, Polygon, and Cardano blockchains (SOL, MATIC, and ADA, respectively). These restrictions were implemented in response to allegations made by the U.S. Securities and Exchange Commission (SEC) that the tokens were unregistered securities. The SEC has made headlines with two blockbuster lawsuits against Binance and Coinbase, two of the largest crypto exchanges.

Revolut’s decision to exit the U.S. crypto market is not an isolated incident. It reflects a broader trend of caution among larger corporations towards Web3 and cryptocurrencies, amid the ongoing battle between U.S. regulators and major industry players. One notable example is GameStop, the embattled games retailer that gained notoriety during the 2021 meme-stock craze. GameStop recently announced the discontinuation of its crypto wallet, citing “regulatory uncertainty.”

Even Robinhood, the popular online stock brokerage that also deals in cryptocurrencies, has taken action. Following the SEC’s lawsuits against Binance and Coinbase, Robinhood delisted SOL, MATIC, and ADA from its platform. These moves by Revolut, GameStop, and Robinhood highlight the increasing wariness in the crypto industry due to regulatory concerns.

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But it’s not just retail-focused companies feeling the heat. Jane Street and Jump Crypto, two of the largest market makers for cryptocurrencies worldwide, have reportedly pulled back in the United States. This retreat comes amidst the federal government’s crackdown on crypto firms following the collapse of the now-bankrupt exchange FTX.

The tension between regulators and the crypto industry seems to be escalating, causing many companies to rethink their positions and strategies. While these firms take time to reassess the situation, the uncertain regulatory landscape has sparked apprehension and prompted hard choices. Revolut’s departure from the U.S. crypto market is merely a glimpse into the challenges that lie ahead for the industry as it navigates a shifting regulatory landscape.

As the shake-up continues, it remains to be seen how U.S. regulators, industry players, and cryptocurrencies themselves will adapt and find common ground. In the meantime, the battle between regulators and the crypto industry continues to cast shadows of uncertainty over the fate of digital assets in the United States.