Technology

Fintech firm SoFi set to exit cryptocurrency business

 Financial technology firm SoFi Technologies is set to exit the cryptocurrency business and has given its customers the option to migrate to UK-based Blockchain.com, the companies said on Wednesday.

The San Francisco-based company said it was ending its crypto services on Dec. 19, and starting Wednesday, new SoFi crypto accounts cannot be opened.

The crypto industry has seen several industry players collapse since last year, most notably Sam Bankman-Fried’s FTX, but investor sentiment has improved in recent months after a spate of filings for spot bitcoin exchange-traded funds.

The industry took another blow last week after former Binance chief Changpeng Zhao pleaded guilty to breaking U.S. anti-money laundering laws as part of a $4.3 billion settlement.

Regulatory pressures on the industry persist as companies clash with the U.S. Securities and Exchange Commission.

SoFi said its eligible customers can migrate their account to Blockchain.com or close their account instead. Crypto users living in New York will not be eligible for the migration due to New York state availability.

The company allowed its users to buy and sell more than 20 crypto currencies including bitcoin, dogecoin and ethereum through its platform.

London-based Blockchain.com said crypto account holders at SoFi will get access to dozens of tokens traded on its platform.

SoFi’s exit was first reported by Bloomberg News.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

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