What does this mean for SoFi Crypto customers?
Current customers of SoFi’s digital currency should receive an email today containing details of the migration.
Users who wish to move to Blockchain.com will need to actively choose to transfer their accounts. The migration process will expand the services available for these digital accounts, including access to more tokens, advanced trading features, and security measures including the ability to hold cryptocurrencies yourself.
Should I close my SoFi Crypto account instead?
SoFi users who want to close their digital accounts can do so actively before December 19.
On that day, active accounts will automatically be liquidated and closed; users will receive details of that process via email and will receive their proceeds through their brokerage account within 60 days. The migration process is expected to be completed by 11 PM.
However, one major hurdle could be the tax implications of liquidating your assets. If you realize a profit, you may be subject to capital gains tax on that sale.
Different rules for different states and tokens
Blockchain.com does not offer its services directly in all U.S. states. There are also some tokens that will be restricted for migration to Blockchain.com in certain states.
Customers in Virginia, Hawaii, Louisiana, New Jersey, Nevada, Tennessee, and Texas will receive services through a partnership with Bakkt Crypto Solutions and will need to agree to Bakkt’s terms and conditions.
Additionally, tokens including Aave, Stellar, Uniswap, Polkadot, and others will be automatically sold at the time of account migration on December 19 for customers in those states.
Users in New York State are not eligible for migration at all. These accounts will remain open until January 28. Trading on these accounts will continue as usual until the deadline on December 19; between December 19 and January 28, users will be unable to buy cryptocurrencies, only sell. After January 28, the accounts will be closed and liquidated in the same manner as other users.
Why did SoFi shut down cryptocurrency operations?
SoFi’s exit from cryptocurrency operations has been planned over the past two years.
The company received conditional approval from the Office of the Comptroller of the Currency (OCC) to operate as a bank holding company in January 2022. This approval was based on SoFi not engaging in any cryptocurrency-related activities or services without OCC’s approval, according to the company’s historical report for 2022.
The report stated: “The Financial Investment Companies Act allows us to continue our current offering related to digital assets for a matching period of two years from the date we transitioned to a banking holding company.”
The company also noted in the past that cryptocurrencies are not a core part of its business. SoFi shares rose approximately 2% at 2 PM Eastern Time.
Source: https://www.investopedia.com/sofi-shuts-crypto-services-heres-what-customers-need-to-know-8407993
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