SoFi offers several financial services, one being a platform for investing. One can create several different investing accounts on the app, one being for crypto. Unfortunately, SoFi will be getting rid of the crypto part of their business. Here is what customers should do.
First, why is SoFi getting rid of crypto? One of the services that SoFi offers is banking. They are extremely focused on this segment of their business. Offering crypto is, unfortunately, a problem for regulators, so SoFi is met with no choice except to get rid of their crypto options altogether.
It’s crazy to me how crypto is seen by regulators and many government officials. Companies like BlackRock, which is the largest asset manager in the world with $9.4 trillion in assets under management, are getting into crypto now which, in my opinion, speaks volumes of the crypto market as a whole. With this in mind, it annoys me that SoFi’s banking segment would be hurt by crypto.
With SoFi suspending crypto, it puts a lot of people, including myself, in a difficult position. If one holds crypto in SoFi, they have two options. They can either sell their crypto, or they can transfer it to blockchain.com. Each one of these options has pros and cons.
One may be asking, why not just sell the crypto on SoFi and then buy it back on a different platform. This could be a good option for some but not for everyone. My crypto investment is in the positive. This means that if I sell my crypto on SoFi, I will have to pay taxes. I really don’t want to pay taxes. If one is not in the positive on their crypto, this would be an option for them.
Transferring their crypto to blockchain.com also has problems. One problem is that it’s another platform. I would imagine that many people don’t want to have to worry about another platform. I will mention that blockchain.com doesn’t charge any fees, but one would have to pay a small network fee to move their crypto to blockchain.com which goes to the miners who confirm and process the network.
All-in-all I get why SoFi is doing this. It’s the smart thing for their business as they are becoming a bank. As a shareholder of SoFi, I am happy with this business move. As a customer of SoFi, however, I don’t like it at all. It puts a lot of their customers in a difficult position.
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