SoFi, the online bank, urges customers to withdraw assets as it makes an exit from the crypto market.
SoFi Technologies, an online banking platform, has made the decision to exit the cryptocurrency market. The company has informed its customers that they will need to either liquidate their accounts within the next few weeks or transfer their assets to Blockchain.com, a popular crypto exchange and custodial service.
According to a report by Reuters on November 29th, SoFi has set a deadline of December 19th, 2023 to shut down its crypto services. As of November 29th, the company is no longer accepting new crypto account openings. SoFi has also stated that only eligible customers will be able to transfer their assets to Blockchain.com. Additionally, starting in 2024, SoFi is expected to refer its customers to other crypto partners, as reported by Bloomberg.
SoFi was originally founded in 2011 with the goal of providing more affordable options for individuals financing their education. In February 2019, the company entered into a partnership with Coinbase, a US-based crypto exchange, to offer crypto trading services with access to 20 digital currencies.
In August 2023, SoFi informed its customers that it might be required to cease trading certain types of assets due to regulatory hurdles in the US. In a filing with the US Securities and Exchange Commission (SEC), SoFi highlighted various regulatory risks associated with crypto trading and acknowledged the possibility of halting crypto trading activities until it obtains additional regulatory permission.
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