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US Financial Services Platform Sofi Announces Exit From Crypto Market

US Financial Services Platform Sofi Announces Exit From Crypto Market

Starting Dec. 19, the financial services platform Sofi will stop offering crypto services to its customers. Sofi said banking regulators’ increased scrutiny of the crypto sector compelled it to make this decision. The company has outlined the steps that must be taken by customers who are willing to have their accounts migrated to Blockchain.com during the transition period, on its webpage.

Sofi Crypto Customers Cannot Open New Accounts

The financial services platform Sofi recently informed its customers that it will stop offering cryptocurrency services starting Dec. 19. In an update shared on its webpage, Sofi told its customers that their accounts will either be migrated to the Blockchain.com platform or be closed completely. Since Nov. 29, Sofi customers have not been able to open new accounts.

According to a Bloomberg report, increased scrutiny of the cryptocurrency sector by U.S. bank regulators has forced Sofi, which received a conditional bank charter in January 2022, to exit the digital asset business. Some of the conditions of the charter required Sofi to obtain the necessary approvals within two years. Failure to receive the said approvals meant the financial services platform would be required to exit their business.

Customers Can Still Trade Crypto With Sofi Accounts

Sofi has outlined the steps for customers who are willing to have their accounts migrated to Blockchain.com during the transition period, on its webpage. Customers can still trade cryptocurrency using their respective Sofi accounts during this period.

Sofi has also informed customers who live in U.S. states like Hawaii, New Jersey, Louisiana, Nevada, Tennessee, Texas, and Virginia that they have to liquidate certain digital assets before the deadline. Failure to do so will result in Sofi liquidating these on their behalf, and the net proceeds will be deposited into the respective customers’ brokerage accounts within 60 days.

For customers living in New York State, Sofi has stated that they are not eligible for the option to migrate to Blockchain.com. While their accounts are set to remain open until Jan. 28, 2024, they will not be able to buy cryptocurrency after the deadline. Only sell orders will be permitted during this period.

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