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The well-known online bank and financial services provider SoFi Technologies (SOFI) has formally declared its exit from the bitcoin market. SoFi just informed users that its cryptocurrency services will be shutting down as of December 19. Customers are being advised by the corporation to liquidate their digital assets or move them to Blockchain.com’s platform.
SoFi’s desire to become a bank holding company is thought to have had an impact on its decision to leave direct bitcoin services. This strategy change was greatly influenced by the regulatory environment, especially the Federal Reserve of the United States’ mandates. The Federal Reserve stated in the bank holding company clearance that SoFi’s cryptocurrency operations did not adhere to banking regulations. It did, however, give a two-year permission with the possibility of extensions, enabling the business to go on with its cryptocurrency activities.
In an effort to make the move easier for its clients, SoFi has partnered with Blockchain.com. Customers of SoFi will no longer be able to access cryptocurrency services within the SoFi domain, but the cooperation will keep things going as the SoFi app will still link to cryptocurrency items. Blockchain.com President Lane Kassleman emphasized the strategic alliance, pointing out that it has been planned for more than a year. He alluded to the intricacy of transferring hundreds of millions of dollars and hundreds of thousands of users, illustrating the scope and careful preparation required.
“So you’ll still be able to link out to crypto products from the SoFi app. You just won’t be able to access them within the SoFi domain. This is not dissimilar to how they offer insurance products, for example,” explained Kassleman.
Even with the deliberate move away from providing direct bitcoin services, SoFi’s business has benefited greatly from the cryptocurrency market. With $139.4 million in digital assets as of September 30, SoFi has a significant presence in the digital asset market. By taking this action, SoFi is demonstrating its dedication to complying with legal obligations and preserving a channel for consumers to interact with cryptocurrency assets via its strategic alliance with Blockchain.com.