Cyprus will serve as the hub for Revolut’s European Crypto operations

On August 12, the Cyprus Securities & Exchange Commission (CYSEC) authorized the European digital bank Revolut to provide cryptocurrency and digital asset services in Cyprus and throughout the European Economic Area (EEA), which includes all 27 members of the European Union as well as Iceland, Liechtenstein, and Norway.

Revolut is the first organization to receive a CySEC license as a provider of crypto-asset services. It valued at 33 billion dollars, with headquarters in the UK, and currently provides exposure to more than 80 crypto assets. Revolut stated that by using its app, users would be able to purchase, hold, and sell cryptocurrency assets in “a responsible manner” that help them in understanding the associated risks. Additionally, it will offer users a regulated platform for digital asset-based derivatives.

Prior to the EU’s proposed Markets in Crypto-Assets (MiCA) regulation, cryptocurrency companies are aiming to create regulated businesses in EU countries to ensure that they would be allowed to offer services across the economic bloc. On June 30, the European Council and the European Parliament came to a temporary agreement on the MiCA regulatory framework, which applies to companies that issue “stablecoins” and unbacked crypto assets, as well as the exchanges places and wallets where these assets are stored.

Revolut aims to ensure that it will be allowed to provide crypto services to its 17 million consumers in the EEA, when MiCA becomes law. It will keep operating its UK-based organization to serve UK customers. The company can provide cryptocurrency services in the UK through the FCA’s Temporary Registration Regime while its registration application with the UK Financial Conduct Authority (FCA) is still pending.

According to a Revolut’s spokesperson, they support the EU-wide law and fully endorse the European Parliament’s intention in supporting innovation while demanding strict customer protection regulations to prevent any form of market exploitation. Also, they acknowledge that CYSEC has in-depth knowledge of cryptocurrencies and is working to be a pioneer in crypto regulation, as setting up a hub for our cryptocurrency activities in the EU.

For being licensed in Cyprus, the company is required to follow strict financial standards, including the segregation and protection of client funds, complete transparency of business operations, and capital adequacy controls, that must be in accordance with the EU’s Markets in Financial Instruments Directive II (MiFID II) framework.

Cyprus had been chosen after carrying out an in-depth survey of all EU countries, and, because of its “sophisticated and robust regulatory regime, as well as the strength of the existing crypto industry in Cyprus” Revolut said.

Revolut, founded in London in 2015, today serves more than 20 million retail customers globally and processes more than 250 million transactions each month.

According to Bloomberg, 5% to 10% of Revolut’s global revenue comes from cryptocurrencies, and the company has tripled its crypto staff since July 2021. Additionally, Revolut is recruiting for 13 positions with a focus on cryptocurrency, including in compliance and financial crime prevention.