SoFi, the financial services platform that introduced cryptocurrency trading in 2019, is scaling back its cryptocurrency business, the company announced. New account creation has been disabled and existing users will have three weeks to migrate to Blockchain.com before their cryptocurrency accounts are automatically liquidated.
Some geographic restrictions apply to immigration eligibility.: Users in some states are required to sell certain unsupported tokens, including: avalanche Avex
-1.14%
and episode 
episode
+
Swap, New York State residents are not eligible to move outright.
SoFi held approximately $140 million worth of cryptocurrency as of the third quarter, according to the company’s financial statements. mostly bitcoin 
BTC
+
(approximately 75 million dollars) and Ethereum 
ETH
+
(approximately 47 million dollars).
Enhanced Investigation
According to a report from Bloomberg, SoFi’s exit from cryptocurrency is a result of increased scrutiny of the cryptocurrency sector by regulators. SoFi’s banking charter, granted in January 2022, was conditional on SoFi’s cryptocurrency business receiving regulatory approval within two years and could be extended three times a year.
SoFi acknowledged the possibility of a rapid rollback of its cryptocurrency operations in its 10-K annual report, saying, “We are working with the Federal Reserve to ensure there is a path forward to bring our cryptocurrency-related activities into compliance with the Bank Holding Company Act.” There can be no assurance that any such attempt will be successful in accordance with the requirements of the Holding Company Act, or that we will receive an extension from the Federal Reserve to continue our current cryptocurrency-related activities beyond the two-year compliance period from the date of our approval. “As a holding company, we may ultimately have to cease these activities in the short term.”
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.