SoFi Technologies, a leading U.S. fintech company, is making significant strides to re-enter the cryptocurrency market following a pivotal regulatory development. The move comes after SoFi successfully navigated compliance challenges that had previously forced the company to scale back its crypto offerings.
SoFi entered the crypto space in 2019, allowing users to buy and sell major cryptocurrencies like Bitcoin and Ethereum. However, after securing a national bank charter in 2022, SoFi faced heightened scrutiny from U.S. regulators. Federal banking laws prohibit insured banks from directly holding crypto assets, prompting SoFi to announce in late 2023 that it would wind down its crypto trading services.
The company’s withdrawal was met with disappointment from its user base, many of whom valued the convenience of managing both traditional and digital assets on a single platform. SoFi’s leadership, however, maintained that the pause was temporary and committed to finding a compliant path forward.
In a recent statement, SoFi revealed it has developed a new compliance framework that aligns with federal banking regulations. According to sources familiar with the matter, SoFi plans to relaunch its crypto services through a partnership with a licensed third-party provider. This approach allows SoFi to offer crypto trading and custody services without directly holding digital assets on its balance sheet, thus satisfying regulatory requirements.
The crypto industry has welcomed SoFi’s return, viewing it as a sign of growing regulatory clarity in the U.S. market. Industry analysts note that SoFi’s large customer base and established brand could help drive mainstream adoption of digital assets.
SoFi’s renewed crypto push also reflects a broader trend of traditional financial institutions seeking compliant ways to serve the growing demand for digital assets. As regulatory frameworks evolve, more banks and fintechs are expected to follow suit. SoFi is expected to announce further details about its crypto offerings in the coming weeks.
Meanwhile, KuCoin, partnering with ERX (now KuCoin Thailand), has launched a compliant cryptocurrency trading platform in Thailand after receiving SEC approval. Existing ERX accounts have been migrated to the KuCoin TH app.
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