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UK-based digital bank Revolut has been authorized by Cyprus to offer cryptocurrency services to millions of customers on the old continent. The fintech firm says regulatory approval will allow it to establish a European crypto hub in the island nation.
A leader in the neo-banking 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, Cyprus Mail noted in a report. These licenses will enable the London-headquartered fintech to expand sales in a number of jurisdictions. The platform will continue to serve its UK customers, who make up the bulk of its customer base, through its UK-registered entity.
With the realization of the crypto node project, Revolut wants to remain in compliance with the new rules the EU is preparing to introduce for the industry. A representative of the company told fintech news Altfi that the online bank welcomes EU-wide regulations and embraces the European Parliament’s intention to support innovation while ensuring strong customer protection that prevents market abuse.
The comments come after the European 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 ground-breaking package called Markets in Crypto Assets (MiCA). The legislation would give providers of crypto-related services a “passport” to serve customers across the Union under a single set of regulations. The Revolut spokesperson also emphasized:
By establishing a hub for our crypto operations in the EU, we recognize CySEC’s in-depth knowledge of crypto and its efforts to be a leader in crypto regulation.
The commission has already licensed other major players in fintech and cryptoassets, such as Crypto.com, Etoro, CMC markets and Bitpanda, the English-language daily noted. Before choosing Cyprus, Revolut conducted extensive research and compared all EU countries, the company revealed, citing Cyprus’ “sophisticated and robust regulatory regime” as well as the strength of the existing crypto industry as important factors in its choice.
“I can tell you that Cyprus welcomes the use of digital and crypto-assets, but we still have to be very careful and respect not only the regulations that are in place, but also the absence of any regulations,” Deputy Minister of Research, Innovation and Digitization Politics Kyriacos Kokkinos stated this spring. He insisted that Cyprus must be aware of the EU framework and revealed that the government in Nicosia had already drafted its own “very attractive law on crypto-assets and blockchain technology.”
Do you expect more crypto companies to choose Cyprus for a European crypto base? Let us know in the comments section below.
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