May 26, 2024
SoFi Ends Crypto Services, Users Shift to Blockchain.com or Closure
Latest Cryptocurrency News

SoFi Ceases Crypto Trading: Users Face Account Transfers or Closure

SoFi Technologies, a U.S. personal finance company, announced the cessation of its crypto trading services by December 19. As per the November 29 announcement, new crypto account registrations are immediately halted on SoFi. Existing users must either transition their accounts to Blockchain.com or opt for closure.

Customers from specific states like Hawaii, Louisiana, New Jersey, Nevada, Tennessee, Texas, or Virginia must liquidate certain unsupported altcoins on Blockchain.com before transferring accounts. New York-based clients must close their SoFi crypto accounts by January 2024 due to Blockchain.com’s unavailability.

While the company didn’t specify the reasons, reports suggest heightened regulatory scrutiny in the sector. Terminating SoFi’s crypto accounts won’t affect other SoFi Invest offerings, such as brokerage accounts and IRAs. In its recent earnings report, SoFi revealed a rise in clients’ deposits in Bitcoin, Ether, and altcoins from $107 million to $139 million over a year.

Previously, SoFi Digital Assets, LLC, faced constraints from the Federal Reserve under the Bank Holding Company Act and Regulation. Despite this, it was permitted to operate in crypto-related activities for a limited duration without expanding the scope or increasing risk exposure to digital assets.

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