Regular customers can now opt to trade cryptocurrencies on the platform, a feature that was previously reserved for Premium and Metal customers
Revolut, the online challenger bank, recently updated the terms and conditions of its cryptocurrency offering to provide users a new “beneficial right” to their holdings.
The revamp comes shortly after the UK-based company allowed regular customers to access cryptocurrency trading for the first time. This was a feature that was previously reserved for its Premium and Metal customers.
The updated terms explain that users now, “own the rights to the financial value of any cryptocurrency we buy for you.”
“We will hold it on your behalf and you will have a right. This means you can tell us when to sell or transfer it (within the limits of these terms and conditions). You have complete control of your cryptocurrencies, and we will only act upon instructions you give us. You will not be able to carry out transactions yourself.” the terms explained.
However, the new beneficial rights come with limitations. For one, crypto holders can only transfer cryptocurrencies to other Revolut customers who also have the app. This would involve passing the buyer’s beneficial right in the stipulated amount of cryptocurrency to sellers.
Furthermore, senders can no longer pay in cryptocurrency using their Revolut Card. Any attempts to conduct a payment using the Revolut card for users that only have funds in cryptocurrency will fail.
Revolut, which advertises itself as an alternative to digital banking, also reminded customers that cryptocurrencies are not classified in the same way as the e-money in their account. As a result, it is not regulated by the Financial Conduct Authority (FCA) in the UK, nor is it protected by the Financial Services Compensation Scheme.
While the company has operated in the UK for five years, it does not yet hold a banking license. It only holds an e-money license.
Revolut recently launched a series of new products, including the introduction of its app and their partnership with the Metropolitan Commercial Bank for the US market. Before March 2020, Revolut’s services attracted over ten million customers and was only available in the UK and Europe, with US applicants being redirected to a waiting list.
This company was founded in 2015 and allegedly signs up over 250 businesses and 9,000 customers every day, with the aim to reach a 100 million milestone in the next four years.