SoFi Technologies will exit the crypto business next month.
Customers will need to liquidate their crypto accounts by Dec. 19, SoFi said in an email and a blog post. Customers can opt to automatically migrate their crypto to the Blockchain.com exchange and wallet provider.
SoFi, in order to buy Golden Pacific Bank and gain a bank charter, agreed in January 2021 to refrain from engaging in crypto-asset activities or services. SoFi had two years to obtain regulatory approval to keep offering the service or shut it down.
For customers who fail to act, the fintech will liquidate their accounts and move any proceeds to their brokerage accounts. SoFi, which entered the crypto business in 2019, will reimburse all fees on crypto sales within 60 days of the transaction.
“We know this is a big change and are here to help you understand your options and transition smoothly,” SoFi said.
Regulators have made it clear that they are watching crypto activities, urging banks in January to be mindful of potential fraud, legal uncertainties, volatility and inaccurate or misleading disclosures, federal regulators said in a joint statement.
The Federal Deposit Insurance Corp. issued a letter in April making it clear that FDIC-supervised banks should inform the agency if they are dealing in crypto or plan to do so.
Metropolitan Commercial Bank in New York announced last January that it would shut down its crypto business. Around that time, Provident Bancorp in Amesbury, Mass., slashed its crypto loan portfolio after getting burned on loans to crypto-mining companies.