Online bank SoFi exits crypto market, urges customers to withdraw assets

Online banking firm SoFi Technologies is leaving the crypto market, urging customers to migrate assets to Blockchain.com.

SoFi Technologies Inc., an online banking platform, is set to leave the cryptocurrency market as the firm has notified its customers they need to liquidate their accounts in coming weeks or move asset to Blockchain.com, a crypto exchange and custodial service.

According to a report from Reuters on Nov. 29, the San Francisco-based company told its customers it will shut down its crypto services on Dec. 19, 2023. Starting from Wednesday, Nov. 29, SoFi no longer opens crypto accounts. SoFi also said that only eligible customers can transfer their assets to Blockchain.com. Starting from 2024, SoFi is also expected to start referring to other crypto partners, Bloomberg noted.

Founded in 2011, SoFi was initially made to provide more affordable options for those taking on debt to fund their education. Eight years late, in February 2019, SoFi entered into a partnership agreement with U.S.-based crypto exchange Coinbase to offer crypto trading services with 20 digital currencies.

In August 2023, SoFi notified its customers it might be “forced to cease trading in certain types of assets” amid the U.S. regulatory hurdle. In a filing with the U.S. Securities and Exchange Commission (SEC), SoFi outlined several regulatory risks related to crypto trading, acknowledging it might be forced to halt trading crypto, which are considered as securities until it obtains additional regulatory permission.