Revolut Reportedly Holding Back Thousands of Pounds of User Funds Due to Gambling Site Ban
Revolut, the cash and cryptocurrency transfer service, is holding user funds in limbo as rules changed regarding transfers from gambling sites.
Revolut, the cash and cryptocurrency money transfer app, is, according to reports, holding thousands of pounds of user funds in limbo after a rule change banned transfers from gambling sites. Revolut has explained the issue to Reddit users, stating that a third party partner that processed the payments suddenly stopped all transfers to and from gambling sites.
Revolut announced that the funds have been received, but that they cannot let the users access them. Reports show that processed withdrawals from weeks ago have been held back and the official rule change has not been implemented. Meanwhile, regular Revolut users, relying on the fintech solution for cross-border payments, have also reported service problems.
Revolut became prominent within the cryptocurrency space, as it added a crypto-cashback service, as well as support for several major digital assets. The mobile banking app has added Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH), as well as Ripple’s XRP. The news of service problems arrived just as Revolut was unrolling its platinum banking card, which offered cashbacks for spending crypto assets.
However, Revolut has faced criticism for the fact that it does not allow withdrawing crypto assets to an external wallet. A purchase of coins or tokens can be transferred only within the Revolut ecosystem, and only liquidated through the app. Keeping a balance of crypto assets in a Revolut account is therefore not advisable.
Revolut, which is popular for users in Europe, has always been supportive of crypto assets, but the latest fund freeze increases skepticism. In the past, Revolut has also blocked users from transfers to and from digital currency exchanges, even those fully legal and based in Europe, such as Bitpanda and Kraken:
Reports from European users from the summer of 2018 show that transfers from exchanges were problematic, based on the fact that they were coming from crypto-trading. In those cases, the funds were sent back to the exchange service, most usually Bitpanda.
Revolut rode the wave of enthusiasm for non-banking fintech solutions. However, as many fintech companies lack their own banking license, the firm suffered the limitations of the general financial system, including the risk of blocked payments and relying on third parties to complete the actual transfer of money through a bank.
It remains to be seen how this latest issue is resolved, but some users are already threatening to report the service to authorities for fraud. If you are affected by the Revolut funds freeze please share your story by contacting us.