U.K.-based digital bank Revolut has been authorized by Cyprus to provide cryptocurrency services to millions of customers on the Old Continent. The fintech firm says the regulatory approval will allow it to establish a European crypto hub in the island nation.
Revolut to Expand Crypto Services for Europeans From Cyprus
A leader in the neobank sector, Revolut, has received approval from the Cyprus Securities and Exchange Commission (CySEC) to operate with cryptocurrencies and other digital assets. The company plans to establish a cryptocurrency hub on the island that will allow it to offer additional services to its 17 million European customers under the EU’s upcoming regulations.
CySEC’s approval comes after Revolut obtained similar authorizations in other markets, such as Spain and Singapore, the Cyprus Mail noted in a report. These licenses will enable the London-headquartered fintech to expand its sales in a number of jurisdictions. The platform will continue to serve its British clients, who form the bulk of its customer base, through its U.K.-registered entity.
With the realization of the crypto hub project, Revolut wants to remain compliant with the new rules the European Union is preparing to introduce for the industry. A representative of the company told the fintech news outlet Altfi that the online bank welcomes the EU-wide regulations and embraces the European Parliament’s intention to support innovation while ensuring strong customer protection preventing market abuse.
The comments come after the EU Parliament agreed with the other key participants in the 27-member bloc’s legislative process, the Commission and the Council, on the draft of a groundbreaking package called Markets in Crypto Assets (MiCA). The legislation will give providers of crypto-related services a “passport” to serve customers across the Union under a single regulatory framework. The Revolut spokesperson also emphasized:
In establishing a hub for our crypto operations in the EU, we recognize that CySEC has in-depth knowledge of crypto and its efforts to be a leader in crypto regulation.
The Commission has already licensed other major players in the fintech and crypto asset space such as Crypto.com, Etoro, CMC markets, and Bitpanda, the English-language daily remarked. Before picking Cyprus, Revolut conducted an extensive research, comparing all EU countries, the company revealed, citing Cyprus’s “sophisticated and robust regulatory regime” as well as the strength of its existing crypto industry as major factors for its choice.
“I can tell you that Cyprus welcomes the use of digital and crypto assets, but we still need to be very careful and respect not only the regulations currently in place but also the absence of any regulations,” Deputy Minister for Research, Innovation and Digital Policy Kyriacos Kokkinos stated this spring. He insisted that Cyprus needs to be mindful of the EU frameworks and unveiled that the government in Nicosia had already drafted its own “very attractive bill on crypto assets and blockchain technology.”