American personal finance company SoFi Technologies will stop providing cryptocurrency trading services to its users on December 19.
According to reports on November 29 announcement, new cryptocurrency account openings on SoFi will be suspended immediately. All existing SoFi Crypto users must migrate their accounts to Blockchain.com or close them. Additionally, customers residing in Hawaii, Louisiana, New Jersey, Nevada, Tennessee, Texas or Virginia must liquidate certain altcoins that are not supported on Blockchain.com prior to account transfer. New York customers of SoFi Cryptocurrency have until January 2024 to close their accounts as Blockchain.com is unavailable in the state.
The company did not give a reason for discontinuing its encryption services. However, Report A hint that the industry is facing wider scrutiny from banking regulators. The decision to terminate the SoFi Cryptocurrency Account will not affect other SoFi Invest products, such as brokerage accounts and Individual Retirement Arrangements (IRAs).
SoFi disclosed in its latest earnings report that it holds $139 million worth of Bitcoin (BTC), Ethereum (ETH) and other altcoins in customer deposits, up from $107 million a year ago. SoFi previously stated that “the Federal Reserve determined that SoFi Digital Assets, LLC engaged in certain cryptocurrency-related activities that the Federal Reserve determined that bank holding companies are not permitted to engage in under the Bank Holding Company Act and Regulation Y.” However, the company then allow Continue its crypto business for two years and extend it for three years thereafter, provided it does not expand the scope of such activities or increase its exposure to digital assets.
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