SoFi Crypto Shutdown: Important Points for Users to Consider

SoFi Announces Termination of Crypto Services

SoFi Technologies (SOFI) has announced the termination of its crypto services by December 19. Customers holding accounts with them can migrate to Blockchain.com or can close their accounts.

Customers opting for migration will gain access to expanded services, including more tokens, advanced trading features, and enhanced security, allowing self-custody of crypto. Those choosing to close their SoFi crypto accounts must do so proactively before the deadline, facing potential capital gains tax implications upon liquidation.

The migration process has certain caveats as Blockchain.com is not offering services in all U.S. states directly. Specific tokens will be restricted for migration in certain states, and partnerships with Bakkt Crypto Solutions will provide services to customers in Virginia, Hawaii, Louisiana, New Jersey, Nevada, Tennessee, and Texas, subject to Bakkt's terms and conditions.

Some tokens, including Aave, Stellar, Uniswap, and Polkadot, will be automatically sold during migration for customers in certain states. New York customers are ineligible for migration, and their accounts will remain open until January 28, with limited trading capabilities.

SoFi's decision to exit the crypto business has been in the works for two years, influenced by a conditional approval from the Office of the Comptroller of the Currency (OCC) in January 2022, stipulating no engagement in crypto-related activities.

The Bank Holding Company Act granted a two-year conformance period for SoFi's digital assets offerings after becoming a bank holding company. The company emphasizes that cryptocurrency is not a significant part of its business. As a result, SoFi shares were up approximately 2% at 2 p.m. Eastern.