UK-based digital bank Revolut has been approved by Cyprus to offer cryptocurrency services to millions of customers on the Old Continent. The fintech firm said 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
Revolut, a leader in the neobank sector, has received authorization from the Cyprus Securities and Exchange Commission (CySEC) to operate in cryptocurrencies and other digital assets. The company plans to establish a cryptocurrency hub on the island to be able to offer additional services to its 17 million European customers under the upcoming EU regulations.
CySEC’s approval comes after Revolt obtained similar licenses in other markets such as Spain and Singapore, Cyprus Mail noted in a report. These licenses will allow the London-based fintech to expand its sales in a number of jurisdictions. The platform will continue to serve UK customers, who form the bulk of its customer base, through entities registered in the UK.
With the realization of the Crypto Hub project, Revolut hopes to maintain compliance with the new regulations that the European Union is preparing to introduce to the industry. A representative of the company told fintech news outlet Altfi that the online bank welcomes EU-wide regulations and embraces the European Parliament’s intention to support innovation while ensuring strong customer protections that prevent market abuse.
The comments come after the EU Parliament agreed with the European Commission and Council, the other key participants in the 27-nation legislative process, on a draft of a landmark package called the Crypto Asset Market (MiCA). The legislation will give providers of crypto-related services a “passport” to serve customers across the EU under a single regulatory framework.A Revolut spokesperson also stressed that.
In establishing our crypto operations hub in the EU, we recognize CySEC’s deep knowledge of cryptography and its commitment to being a leader in crypto regulation.
The European Commission has already licensed other major players in the fintech and crypto asset space, including Crypto.com, Etoro, CMC markets and Bitpanda, said the English daily remarked. Before choosing Cyprus, Revolut conducted extensive research, comparing all EU countries, and the company revealed that Cyprus’ “advanced and robust regulatory regime” and the strength of its existing crypto industry were cited as key factors in its choice.
“We can say that Cyprus welcomes the use of digital and crypto assets, but we still need to be very careful and respect not only the regulations that currently exist, but also the lack of regulations,” Deputy Minister for Research, Innovation and Digital Policy Kyriacos Kokkinos said this spring He said Cyprus is a member of the EU frame of reference. He insisted that Cyprus needs to take note of the EU framework and announced that the Nicosia government has already drafted its own “very attractive bill on crypto assets and blockchain technology.”
Image credit: Shutterstock, Pixabay, Wiki Commons