oneybox has shelved its plans to introduce crypto products to customers as the London fintech distances itself from digital assets amid market volatility and cost-of-living pressures.
The firm, which offers app-based savings and investments services, had previously expressed enthusiasm for cryptocurrencies and boasted of plans for crypto investing options for customers following its £35 million Series D round last year, but has since put those plans on the back burner, according to a report by fintech news site AltFi.
Moneybox CEO Ben Stanway said: “Over the last 12 months, significant market volatility has affected how consumers are choosing to invest their money and while crypto remains an option on our product roadmap, its integration into the Moneybox investment proposition has been deprioritised.”
”At Moneybox we are committed to helping people build and grow wealth throughout their life and most recently, our focus has been on helping our customers make progress toward their financial goals while navigating changing market conditions with greater confidence,” he added.
Moneybox had previously talked up the importance of the crypto trading market and was keen to help shape the rules governing how it would operate, responding to a UK government consultation on future cryptocurrency regulations.
“Interest in this asset class is growing and rather than being a niche investment for hobbyists, crypto-assets can have a place within a diversified investment portfolio, provided they are subject to regulation in the same way as other high risk investment classes,” Moneybox said in its consultation response.
It comes as a number of major UK banks including Starling, Barclays and RBS have blocked credit card payments and transactions with crypto exchanges amid a broader clampdown on Bitcoin-related activity.
Starling said: “The innovative technology, and thinking, behind cryptocurrencies have great potential advantages, however, right now, they are high risk and heavily used for criminal purposes and, as such, we no longer support them.”
The price of Bitcoin has climbed 69% since the start of the year to top $29,000, but remains well down on the peak it achieved in 2021 of $64,400.
Moneybox founders Ben Stanway and Charles Mortimer each have a wealth of £19.7 million, according to an estimate produced by the Evening Standard Tech Rich List.
