The UK’s Financial Conduct Authority (FCA) has introduced significant new regulations impacting firms like Revolut crypto in the Revolut UK sector, compelling many crypto firms to halt their services in the country. These companies must now adapt to comply with these new rules. Initially introduced in October, the regulations are set to take effect in January 2024, providing a readjustment period. However, the FCA has noted non-compliance among many firms and has consequently required Revolut crypto services to temporarily cease operations.
Revolut is a digital bank with the FCA registration. Since September 2022, it has been authorized to offer crypto services. Presently, the bank must suspend crypto purchases on its business platform for UK clients. However, clients can still sell their existing crypto assets; the suspension only applies to new purchases.
Revolut crypto giving an adjustment period for its customers
During this adjustment period, Revolut must modify its model to ensure compliance with the new DOFP (Designated Outcome Focused Provision) rules. The bank faces a tight deadline to revamp its platform by January 8th of the following year.
Revolut UK firms have been aware of these impending changes. The bank offered a 3-month extension period for them to restructure their businesses accordingly. Consequently, many firms have temporarily withdrawn from the platform.
Notable users of Revolut crypto services, such as ByBit and PayPal, have had to limit specific services temporarily due to the new regulations. Luno, another significant user, blocked some clients from its platform to avoid violating the guidelines.
In summary, the FCA’s new crypto regulations have prompted significant changes for Revolut crypto and other key players in the Revolut UK market, underscoring the evolving landscape of Revolut business in the financial sector. These changes highlight the evolving nature of regulatory compliance in the rapidly developing crypto sector.
