By Hassan Mehmood (Saudi Arabia)
Digital payments services provider Revolut has decided to halt new crypto purchases based on policy changes. The firm has cited the latest regulatory changes taking place in the UK regarding advertisement guidelines as the main reason for the decision.
Revolut officials reported that the digital banking services provider is temporarily stopping all new cryptocurrency purchases for its business platform.
On this account, the company has sent an email to the account holders entailing that the consumers. However, the email has informed the clients about halting virtual currency purchases retaining that the business will continue to sell digital currencies as usual.
The firm further noted that the pause is necessary to incorporate the latest policy changes introduced by Financial Conduct Authority (FCA) regulations.
Revolut to Stop Crypto Purchases
Revolut posted a notification on social media platform indicating that the platform will stop making new cryptocurrency purchases from 3rd January, 2024. The firm further noted that the platform is recalibrating the existing digital currency services for commercial firms to ensure that all the regulatory requirements are completed.
Also read:Revolut is one of the digital trading firms that are undertaking changes on account of the recent FCA regulatory changes.
Crypto Ad Rules
The regulatory amendments in question were introduced in June citing the issues concerning cryptocurrency advertisements. FCA officials have termed the policy changes as tough and claimed that the regulatory policies are aims to make crypto-services compliant with the latest policy changes alongside other high-risk investment options.
The regulators require cryptocurrency firms to warn consumers regarding the trading-risk associated with investing in the virtual currencies.
UK Regulators Impose Ban on Customer Referrals
FCA has also introduced a ban on referral bonuses for crypto trading platforms. It means that current account holders will not be able to get rewards such as tokens or discount coupons by sharing referral links with their peers.
At the same time, the regulatory agency has also mandated digital trading platforms to add cool-off period for new sign-ups following first purchases. FCA has extended the previous deadline on 8th October to 8th January.
The regulators note that regulatory compliance will take time. During September, the firm noted that the regulatory compliance among different crypto trading platforms declined. On 25th October, FCA listed more than 200 violations of regulatory requirements. On this account, the firm issued additional guidelines regarding updated terms of services in November
Various digital trading platforms have exited the UK sector following the advertisement policy changes issued by FCA. Bybit, a digital currency trading platform, declared that it was exiting the UK. In the same manner, NMarinade Finance a Solana-based forum started to block UK consumers.
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