A US-based financial technology firm, SoFi Technologies, announced it will cease its crypto trading services by December 19.
New crypto account registrations on SoFi are halted immediately. Existing users must either transfer their accounts to Blockchain.com or close them. Residents in certain states must liquidate unsupported altcoins before transferring.
New York clients must close their accounts by January 2024 due to Blockchain.com’s unavailability. SoFi didn’t specify reasons, but regulatory scrutiny on crypto activities might be a factor.
SoFi’s move doesn’t affect investment services like brokerage accounts or IRAs. The company disclosed holding $139 million in cryptocurrencies for clients, citing regulatory constraints on its crypto-related activities.
Recent industry setbacks have impacted crypto businesses, including Binance’s legal issues and ongoing regulatory clashes. Despite regulatory challenges, investor optimism in the crypto market is evident.