SoFi financial platform will stop working with cryptocurrencies on December 19

As an alternative, customers were offered to move their coins to the Blockchain com exchange

04.12.2023 - 13:48

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1 min

What’s new? San Francisco-based fintech company SoFi will stop working with cryptocurrencies amid increased scrutiny of the sector by banking regulators. In a letter, it urged customers to liquidate coins on the platform’s accounts or move them to the Blockchain com exchange by December 19. It will not be possible to open new cryptocurrency accounts on SoFi as early as December 6.

Bloomberg’s material

What else is known? SoFi began offering cryptocurrency services in 2019 in partnership with the US crypto exchange Coinbase. At the same time, the company did not have a banking license until February 2022, and after that, it became one of the few traditional sector banks offering digital asset-related services.

However, such a turnaround did not please representatives of the Senate Banking Committee and the Federal Reserve. Thus, in November 2022, the Central Bank’s board deemed it unacceptable for the bank to provide crypto services and gave it until January 2024 to bring its activities in line with the regulator’s requirements.

In addition, in August this year, the Central Bank said that it would strengthen control over the cryptocurrency activities of banks.

The terms of the agreement between SoFi and Blockchain com have not been disclosed. In November, the exchange raised $110 million in a Series E funding round led by Britain’s Kingsway Capital.

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