Revolut is facing a crackdown on cryptocurrency investing as ministers prepare to take action over the banking app’s unregulated trading strategy. According to Treasury documents, “staking,” in which investors deposit their crypto holdings in the hope of earning double-digit returns, may face new controls from the City watchdog. Revolut, which was valued at $33 billion (£27 billion) in 2021, becoming Britain’s largest private company, began offering cryptocurrency staking to customers last week, joining exchanges like Coinbase and eToro in allowing users to lock up their holdings for rewards. Depending on the cryptocurrency, it can provide returns of up to 11.65pc. The company stated that it supports new regulations.
