The fintech and crypto landscape in CEE through the Revolut lens

Recently, Revolut received approval to offer crypto services throughout Europe. What does this mean for the crypto space in the CEE region?

Revolut has been awarded the first crypto authorization (Crypto Asset Service Provider, or CASP) from the Cyprus Securities and Exchange Commission (CySEC). This was one of the first steps in forming a new European hub for crypto assets to provide additional crypto services to its over 17 million European customers. This new entity will allow Revolut to continue to offer its EEA-based clients exposure to an ever-growing list of crypto-assets and other crypto-features, and will enable us to launch new crypto-asset products.

CySEC was chosen due to its sophisticated and robust regulatory regime, as well as the strength of the existing crypto industry in Cyprus. The decision was made after conducting an in-depth survey of all EU countries. A number of other major international crypto companies are regulated by CySEC, including Crypto.com, Bitpanda, eToro and CMC markets.

Earlier, in July, you launched “learn and earn” cryptocurrency. Can you provide more details about the content, the goals behind the project and the consumer reaction?

Our Earn and Learn program is a series of courses designed to help customers improve their knowledge of cryptocurrencies and related topics, including blockchains, and the most popular tokens and protocols. The course has been taken by approximately 2 million customers who are interested in cryptocurrency. With 60% of participants newly entering the crypto world, ‘Learn & Earn’ confirmed its role in transforming technical crypto jargon into more accessible information.

Can you outline Revolut’s European crypto consumer profile in the CEE region?

First, I would like to highlight that in the CEE region, Revolut has over 6.7 million customers, with Romania and Poland accounting for almost 60% of the total number of customers in the area. 53% of our customers are between the ages of 25-44 According to our data, Learn & Earn particularly attracted the customers belonging to Millennials and GenZ (18-34 years). Almost two-thirds of the total number of crypto customers who completed the courses and earned the rewards fall into these age categories. According to various studies conducted by independent research companies*, men are more interested in investing in crypto, and users who have already adopted fintech solutions to manage their money are more likely to invest in crypto than traditional banking users. Interest in cryptocurrencies is highest in the group under 24 years of age. Men tend to be between 50%-100% more interested than women in risky assets like crypto and trading. The gap widens with the increase in risk, with the largest gap in cryptocurrencies (22% of all male respondents are interested in crypto versus 12% of females).

Are there any crypto-friendly banks in the CEE regions?

The general perception is that cryptocurrencies are more related to technology than banking. In fact, crypto is a new asset in an increasingly cashless economy. This is why, for example, in the CEE region, the most used channels for buying and selling crypto are the crypto platforms, as a recent regional survey showed**. It is difficult to see traditional banks involved in crypto, but it is expected to see an increase in regulation from national governments or central banks, as has always happened in new and fast-growing industries, especially those related to retail finance.

This year, the EU sealed deals on two landmark crypto laws (its new Markets in Crypto Assets law, known as MiCA, along with the controversial Identity Checks in Transfer of Funds regulation). What was Revolut’s reaction and how do these affect your crypto operations?

We welcome EU-wide regulation and wholeheartedly embrace the European Parliament’s clear intention to support innovation while demanding strong customer protection measures to prevent any form of market abuse. We are proud to be among the first to receive this authorization from CySEC and look forward to working with CySEC on the responsible and secure development of our crypto services. We are establishing an entity in Cyprus in anticipation of new EU regulation that will change how EU companies offer crypto services to our EEA-based customers. Our UK customers will continue to be served by our UK based company, Revolut Ltd.

If you were to portray the perfect crypto market (in terms of crypto user adoption, regulators’ attitude, local officials’ view of crypto, etc.) what would it look like?

There is no such thing as perfect markets. All businesses must comply with local and global regulations in order to offer responsible, reliable and responsible products and services to their customers. The recent history of breakthrough innovations – smartphones, electric vehicles, IoT devices, fintech, cryptocurrencies – showed us that regulation, education and the best understanding of the customer experience are fundamental to successful positioning in the market. Revolut’s mission is to offer the best products and services when it comes to money management, and an important part of that is improving financial literacy, especially related to new technologies and tools. It is important to understand the trends, risks and potential opportunities associated with any financial product or service, including crypto. Crypto is becoming more and more popular, which makes education about it increasingly important.

What are the main features you are personally passionate about in crypto payments? How will you convince skeptics to join the crypto bandwagon?

We do not persuade customers to trade crypto, nor do we try to convince the skeptics. It is always up to the individual customer to decide which types of assets the customer wishes to buy or sell. Our aim is to ensure that our services are error-free, secure, fast and easy to use, at a good price. We make innovative products available to customers and educate customers about them (Learn & Earn), but we don’t try to convince them to try if they are skeptical. We are building Revolut to be the first truly global banking service provider. The exciting thing about cryptos is that they are truly global.

*Survey conducted by Reveal Marketing Research in Romania, in June 2022.

**Survey made by iSense Solutions, in May 2022, on crypto adoption in the region.

About Alexey Kosceev

Alexey Kosceev, Head of Growth for the CEE region, joined Revolut in May 2022 and he is responsible for building the financial super app’s business in Romania, Poland, Hungary, the Czech Republic, Slovakia, Slovenia, the Baltic States (Lithuania, Latvia, Estonia ), Bulgaria. His focus is on developing team structures, enabling partnerships with brands, networks, agencies, influencers, affiliates and media, planning and executing marketing strategies and campaigns across marketing channels – including digital marketing, community management, CRM, content and offline marketing and Revolut’s first nationwide and cross-country TV campaigns.

Aleksej previously held senior marketing roles at Delivery Hero, as Global Head of TV & offline, and was responsible for markets in Europe, America, MENA and APAC, in Lidl Lithuania and in Vizeum, part of the Dentsu Aegis Network.