SoFi to Exit Crypto Business Amid Increased Regulatory Scrutiny
SoFi Technologies Inc., a financial services company, has decided to exit the cryptocurrency sector due to increased scrutiny by banking regulators.
On November 29, the company announced that it would terminate its cryptocurrency trading services for users by December 19. The company informed its crypto customers that they would need to liquidate their accounts in the coming weeks or migrate to the crypto exchange and wallet provider Blockchain.com.
$SOFI announces they are exiting crypto. pic.twitter.com/cz1HXPhg5K
— Michael McQuaid (@michaelgmcquaid) November 29, 2023
They will also be suspending new crypto account openings immediately as their existing SoFi crypto users migrate their accounts to Blockchain.com or close them.
Customers residing in certain states, including Hawaii, Louisiana, New Jersey, Nevada, Tennessee, Texas, and Virginia, must liquidate unsupported altcoins through Blockchain.com before transferring accounts.
Additionally, SoFi crypto clients in New York are required to close their accounts by January 2024 due to the unavailability of Blockchain.com in the state. The decision to end crypto services at SoFi does not impact other SoFi Invest offerings, including brokerage accounts and Individual Retirement Arrangements (IRAs).
SoFi, which began as a student-lending refinancing company in 2011, expanded its services over the years and entered the crypto space in 2019, allowing users to buy and sell Bitcoin, Ethereum, and Litecoin directly through its app.
In its latest earnings report, SoFi revealed that it held $139 million worth of Bitcoin (BTC), Ether (ETH), and other altcoins in clients’ deposits, marking an increase from $107 million a year earlier.
The decision to work with Blockchain.com, a
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