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Revolut Halts Crypto Purchases for UK Businesses
Revolut will temporarily halt certain cryptocurrency
services for its business customers in the UK in response to upcoming regulatory
changes by the Financial Conduct Authority (FCA).
According to a report by City A.M., the fintech
Fintech
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Read this Term firm disclosed its decision to suspend the ability to purchase cryptocurrencies via
Revolut Business starting January 3, 2024. This is in accordance with the FCA’s new
guidelines on crypto assets.
Recently, the FCA signaled imminent guidelines, compelling Revolut to pause the purchasing option
for cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
Read this Term through Revolut Business. However, business customers retain the ability to hold and sell
crypto. Conversely, the company’s retail customers are not affected.
The FCA’s impending regulations involve provisions
aimed at protecting investors in the volatile digital asset space. Central to
these rules is the introduction of a mandatory 24-hour “cooling off
period” for investors engaging in crypto transactions.
Additionally, incentives like “refer a
friend” bonuses will be banned. This step seeks to mitigate potential
speculative behavior in the market. Scheduled to be enforced for registered
crypto firms from January 8, 2024, the FCA has granted a transition period for
companies to make the necessary adjustments.
Revolut Joins Major Firms in Regulatory Compliance
Revolut is not the only company in the crypto industry adjusting its operations ahead of the FCA’s new requirements. In August, PayPal announced a temporary suspension
of its crypto sales in the region. This decision was effected on October
1. The company announced to its users that
they could hold or sell their existing crypto assets.
PayPal’s decision aligned with a growing trend among
financial institutions in the UK. Major banks like HSBC, NatWest, and First
Direct have already imposed daily transaction limits on cryptocurrencies,
echoing a broader industry shift toward regulatory compliance.
Last month, the FCA updated its guidance for crypto asset firms in response to new
regulations governing crypto promotions targeting consumers in the UK.
FCA’s Requirements
Despite the regulations having been in place for a while,
numerous firms are reportedly struggling to comply with its
requirements. This has led the FCA to introduce fresh guidelines. The FCA’s updated guidance aids firms to align their marketing activities with
the recently implemented “Consumer Duty” act.
Lucy Castledine, the FCA’s Director of Consumer
Investments, underscored this integration of the new crypto marketing rules
with existing high-risk investment regulations. This step showcases a concerted effort
toward consumer protection, Finance Magnates reported.
Revolut will temporarily halt certain cryptocurrency
services for its business customers in the UK in response to upcoming regulatory
changes by the Financial Conduct Authority (FCA).
According to a report by City A.M., the fintech
Fintech
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Read this Term firm disclosed its decision to suspend the ability to purchase cryptocurrencies via
Revolut Business starting January 3, 2024. This is in accordance with the FCA’s new
guidelines on crypto assets.
Recently, the FCA signaled imminent guidelines, compelling Revolut to pause the purchasing option
for cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
Read this Term through Revolut Business. However, business customers retain the ability to hold and sell
crypto. Conversely, the company’s retail customers are not affected.
The FCA’s impending regulations involve provisions
aimed at protecting investors in the volatile digital asset space. Central to
these rules is the introduction of a mandatory 24-hour “cooling off
period” for investors engaging in crypto transactions.
Additionally, incentives like “refer a
friend” bonuses will be banned. This step seeks to mitigate potential
speculative behavior in the market. Scheduled to be enforced for registered
crypto firms from January 8, 2024, the FCA has granted a transition period for
companies to make the necessary adjustments.
Revolut Joins Major Firms in Regulatory Compliance
Revolut is not the only company in the crypto industry adjusting its operations ahead of the FCA’s new requirements. In August, PayPal announced a temporary suspension
of its crypto sales in the region. This decision was effected on October
1. The company announced to its users that
they could hold or sell their existing crypto assets.
PayPal’s decision aligned with a growing trend among
financial institutions in the UK. Major banks like HSBC, NatWest, and First
Direct have already imposed daily transaction limits on cryptocurrencies,
echoing a broader industry shift toward regulatory compliance.
Last month, the FCA updated its guidance for crypto asset firms in response to new
regulations governing crypto promotions targeting consumers in the UK.
FCA’s Requirements
Despite the regulations having been in place for a while,
numerous firms are reportedly struggling to comply with its
requirements. This has led the FCA to introduce fresh guidelines. The FCA’s updated guidance aids firms to align their marketing activities with
the recently implemented “Consumer Duty” act.
Lucy Castledine, the FCA’s Director of Consumer
Investments, underscored this integration of the new crypto marketing rules
with existing high-risk investment regulations. This step showcases a concerted effort
toward consumer protection, Finance Magnates reported.
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