Neobank Revolut has just obtained its approval from the Cyprus Securities and Exchange Commission (CySEC) and confirms its intention to confirm to current and future European regulations.
Revolut approved by CYSEC
Revolut, the up-and-coming British neobank, has just received approval from the Cyprus Securities and Exchange Commission (CySEC) to offer its dedicated cryptocurrency services within the European Economic Area (EEA).
The news comes after the fintech announced a 20% increase in staff operating in its dedicated cryptocurrency arm earlier this month.
Revolut, now valued at more than $33 billion, now has the endorsement of the Cypriot body in charge of stock market regulation and financial market supervision.
The CySEC approval provides additional security for its 17 million European clients, and requires a segregated account for the organization to ensure that its equity is separate from the funds committed by traders.
It thus joins various companies offering cryptocurrency-related services such as the European branch of FTX, Crypto.com, Bitpanda or eToro.
The neobank explains that it chose Cyprus after a thorough study of the European Union, recognizing the country’s “sophisticated and robust regulatory regime, as well as the strength of the existing crypto industry in Cyprus.”
A step ahead of the upcoming regulation
The year 2022 is a pivotal year for regulation within the European market: the MiCA regulation project is moving forward and its publication is scheduled for the beginning of 2023 after its adoption in plenary session. We interviewed Faustine Fleuret, President of ADAN, on this subject in early July.
The MiCA project will be used to define the scope of action of companies offering cryptocurrencies, which is why they are already taking the necessary steps to ensure compliance as soon as possible.
Thus, we can expect to see cryptocurrency issuers multiplying the requests for licenses and approvals from the various European regulators, the latter wishing above all, in the main, to protect the consumer by fighting against money laundering and any form of financial crime. This is also what CySEC is proposing, which is why it may be a strategic choice.
This was notably confirmed by a Revolut spokesperson:
“We welcome the European regulation and wholeheartedly endorse the European Parliament’s clear intention to support innovation while requiring strong customer protection measures to prevent any kind of market abuse.”
Regarding the UK, the fintech is offering its services there through a temporary license from the Financial Conduct Authority (FCA), pending registration with the agency.
Revolut continues to expand its range of cryptocurrencies, with the fintech recently adding around 20 earlier this month, including APE, AVAX or SAND.
