SoFi to Exit Crypto Business Amid Increased Regulatory Scrutiny

SoFi, the online lending and financial services company, announced that it will be exiting its nascent cryptocurrency business due to increased regulatory scrutiny. SoFi had recently launched cryptocurrency trading in March 2021 and offered a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple, Dogecoin, and Bitcoin Cash, to its customers.

SoFi cited the recent volatility of the cryptocurrency market—for example, the astronomical gains of Dogecoin in the past few weeks—as the main reason for terminating the service. According to their announcement, they believe that the “uncertain regulatory landscape” has led to “an increased risk that certain states could impose requirements or restrictions on the offering of this service,” forcing SoFi to remove the service entirely.

SoFi is not the only company that has made the decision to exit the cryptocurrency business amid regulatory issues. Several other banks and financial services companies, such as Coinbase and JPMorgan Chase, have decided to cease crypto operations due to concerns around the potential for money laundering and other illegal activities. Although the cryptocurrency market has seen tremendous growth over the last few years, the regulatory uncertainty continues to hinder the development of the industry.

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