SoFi Technologies will stop crypto services until December 19
US private finance company Sophie Technologies will stop offering crypto trading services to its users on December 19.
According to the announcement of November 29, the opening of new crypto accounts on SOFI is immediately suspended. All existing SoFi crypto users should transfer or close their accounts to Blockchain.com. Additionally, customers residing in Hawaii, Louisiana, New Jersey, Nevada, Tennessee, Texas or Virginia must cancel certain altcoins not supported by Blockchain.com prior to account transfers. New York's Sofi crypto customers will have to close their accounts in January 2024 due to the absence of Blockchain.com in the state.
The company did not disclose the reason for discontinuing its crypto services. However, reports suggest that the sector is under heavy scrutiny from banking regulators. The decision to end SoFi's crypto accounts does not affect other SoFi Invest offerings, such as brokerage accounts and Individual Retirement Arrangements (IRAs).
In its latest earnings report, Sophie announced that $139 million in Bitcoin (BTC), Ether (ETH) and other altcoins were held by customer deposits, up from $107 million a year ago. SoFi previously stated that “the Federal Reserve has determined that SoFi Digital Assets, LLC is not authorized by the Federal Reserve as a banking company under the Bank Holding Company Act and Regulation Y to engage in certain crypto-related activities.” However, as long as the company does not expand the scope of these activities or increase its exposure to digital assets, it is allowed to continue its crypto operations for two-year and three-year extensions.
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