What's Happening?
SoFi Technologies, a leading financial technology company, has announced that it will be discontinuing its cryptocurrency trading services for users. The decision comes as a surprise to many, and new account openings have already been suspended.
What Users Need to Know
All existing SoFi crypto users have two options: they can either migrate their accounts to Blockchain.com or close them altogether. However, customers residing in Hawaii, Louisiana, New Jersey, Nevada, Tennessee, Texas, or Virginia must liquidate certain altcoins unsupported on Blockchain.com before transferring their accounts.
New York Clients Affected
New York clients of SoFi crypto will be particularly impacted by this decision. Due to the unavailability of Blockchain.com in the state, they must close their accounts by January 2024.
Reasons Behind the Move
SoFi Technologies has not provided a specific reason for ending its cryptocurrency services. However, reports suggest that the wider crypto sector is facing increased scrutiny from banking regulators, which may have influenced SoFi's decision.
Other SoFi Services Unaffected
It's important to note that the discontinuation of cryptocurrency accounts does not impact other SoFi Invest offerings, such as brokerage accounts and Individual Retirement Arrangements (IRAs). Users can continue to access these services without any interruption.
SoFi's Crypto Holdings
In its latest earnings report, SoFi disclosed that it held $139 million worth of Bitcoin (BTC), Ether (ETH), and other altcoins in clients' deposits. This is an increase from $107 million the previous year. The company had previously received permission to engage in crypto-related activities, but it seems that this permission has now come to an end.
Overall, the decision to end SoFi's cryptocurrency trading services is a significant development in the crypto industry. Users are advised to take action and make the necessary account transfers or closures before the deadlines.
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