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Starting from July 27, the clients of Revolut will have legal control of their cryptocurrencies.
UK-based fintech bank Revolut has revealed that it would grant legal control of crypto to users who own them under its updated terms and conditions of crypto offering.
With this, the online bank has given beneficial rights to users over their digital security. Revolut made this move after it enabled regular customers to gain access to crypto trading for the first time. Before now, only Revolut Premium and Metal customers had access to this feature.
In the new terms, it explains that users will own rights to the financial value of crypto the bank buys for them. They will only keep them on users’ behalf, and users would have the right to sell or transfer their funds when they like. The bank would act on the instructions of users, as they won’t be able to carry out these transactions on their own.
However, these new beneficial right given to users has certain clauses according to the recent terms. Users are only able to transfer the funds to other Revolut clients.
The fintech firm is also putting an end to its crypto card payment. It is another way users could use their crypto outside the ecosystem. Revolut old policy does not allow customers to pay for goods with cryptos except when their account had cryptocurrencies, and the bank would exchange crypto for fiat on behalf of such client. This, however, by July 27, would also be suspended.
With the policy changes, Revolut would be able to expand its crypto features according to the bank as the firm recently has been expanding its global presence entering the U.S. market in March.
Recently Introduced Revolut Products
The fintech firm claiming to be the digital bank alternative has sounded a note of warning to its clients that digital assets are not the same as deposits in their accounts. They, therefore, are not regulated in the UK by the FCA or protected by the Financial Services Compensation Scheme.
The firm has an e-money license but does not have a banking license, although it had functioned in the UK for five years without the banking license. The firm also recently doled out new products alongside its updated app. Moreover, it is expanding its services in the U.S. with Metropolitan Commercial Bank as a partner.
As of March 2020, the fintech firm already served more than nine million clients in the UK, Europe, as applications that came from the United States where suspended.