Revolut is now another company on the list of organizations suspending their trade of MATIC, SOL, and ADA. Last month, the same altcoins were removed as options to purchase on major US-based exchanges, including Bakkt and Robinhood.
The seemingly country-wide ban of these altcoins comes at a time when the US Securities and Exchange Commission is cracking down on any cryptocurrencies that are not Bitcoin, LiteCoin, Ethereum, or Bitcoin Cash.
This begs the question: if the US crypto market is so hostile towards these altcoins, what are their chances of survival in overseas markets?
“Our U.S. crypto services provider has decided to delist these tokens due to the changing laws and regulations around cryptocurrency in the United States,” read an email sent to US clientele.
The email signals Revolut’s announcement to suspend the purchase of ADA, MATIC, and SOL for all customers. The platform, however, will allow US clients to hold and sell their altcoin tokens until September 18th.
The company also announced its plans for any unsold ADA, MATIC, or SOL tokens found in customer accounts:
“Any remaining tokens will be sold on your behalf using the market price at the time of sale. We’ll deposit the USD proceeds into your Revolut account.”
A company spokesperson said that the decision came as a result of the company’s US infrastructure change and that the cryptocurrencies mentioned above are not officially classified as securities. He also added that these changes will only affect customers in the US market and will have no impact on other clients around the world where Revolut continues to facilitate the sale and purchase of ADA, MATIC, and SOL.
Revolut is certainly not the first exchange to drop these altcoins. In the past weeks, major exchanges, including eToro, Bakkt , and Robinhood, also announced that they’re suspending the ability for their clients to purchase SOL, MATIC, or ADA.
Moreover, Celsius, the bankrupt crypto lender has announced a plan to sell all altcoins on its platform and repay its customers in both fiat currency and NewCo stock. Considering the sum of altcoins held in customer wallets on its platform, a sizeable sell-off might influence the pricing of these altcoins.
Obviously, a future in the US market seems bleak for these altcoins. But, that doesn’t mean that SOL, MATIC, and ADA will cease to exist. Following the SEC crackdown on exchanges, such as Binance and Coinbase, many companies are looking elsewhere to carry on their business in a stable market.
Among the most notable organizations is Andreessen Horowitz, a Silicon Valley Venture capital firm, which has already announced its plans to establish a new office in the UK.
Many governments around the world are moving to establish clear regulations regarding crypto trading in an attempt to become the new financial hub of the world. Among the most impressive governments is the Hong Kong government, which is staking its own money in the crypto market, holding events to bring in all crypto stakeholders and forcing financial institutions to deal with crypto exchanges, all in an attempt to fortify its position and empower its digital currency, e-HKD.