Revolut Stops Offering Crypto Services to US Customers Due to Regulatory Uncertainty
Revolut is a Fintech enterprise that is operational in the USA. However, the firm has decided to close its doors to American consumers on account of regulatory issues. The management of the firm has cited that there are ongoing regulatory issues in the region.
To this effect, the firm has decided that it will halt cryptocurrency trading services for account holders in America starting 2nd September this year. The company has maintained that consumers will not be able to place new purchase orders starting in September.
However, consumers will be able to sell their reserves until 3rd October. After October, Revolut is going to shutter down all services in the country. The news is not a surprise under the pretext of an ongoing crackdown on the cryptocurrency markets.
At present, various crypto enterprises are facing regulatory troubles from the Securities and Exchange Commission. Other agencies such as the Department of Justice and CFTC have also decided to partake in bringing legal action against miscellaneous cryptocurrency enterprises.
Revolut to Exit US Market This Year
Revolut has told the media that it is making a difficult decision to exit the country in tandem with its banking partners. The spokesperson maintained that the firm intends to exit America this year.
The crypto enterprise maintained that it is going to continue its services in other regions. It is important to note that Revolut announced the delisting of listed cryptocurrencies earlier this month.
Some of the crypto coins include MATIC, SOL, and ADA. All of these cryptocurrencies have been marked down as unregistered securities by SEC. The firm has told the media that it is planning to sell these three tokens before 18 September.
An email sent to Revolut consumers from the management has informed them that these three crypto tokens will be delisted from the platform on 3rd September. The consumer base of Revolut in the US makes up only 1% of the international market share.
The firm has informed its consumers that any remaining reserves in Revolut wallets will be liquidated after 2nd October.
Tether holds $1.6 billion in Bitcoin reserves. The report has been shared by Dune Analytics. This amount makes Tether the 11th largest Bitcoin reserve holder in the world. The stablecoin project revealed earlier this year that it was planning to invest around 15% of its profits to acquire Bitcoin.
The recent changes are part of the plan of the stablecoin project to move away from US debt and increase its investments in crypto assets.
Analyst Tom Wan has maintained that the current Bitcoin reserves of Tether represent a 50% liquidity cushion. The analyst has also maintained that around 85% of USDT project reserves are dependent on cash, cash equivalents, and short-term deposits. Paolo Ardonio CTO of Tether has pointed out some issues with the 10bps pressure on USDT caused by FDUSD on Binance.
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