Revolut, a U.K. digital bank, has been granted permission by Cyprus to offer cryptocurrency services to customers across the Old Continent. Revolut, a fintech company claims that the regulator approval will permit it to set up a European Crypto Hub in the island country.
The Revolut will expand its crypto services for Europeans from Cyprus
Revolut has been approved to use cryptocurrencies and digital assets by the Cyprus Securities and Exchange Commission. 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, the Cyprus Mail noted in a report. The licenses will allow the London-based fintech company to increase its sales in many jurisdictions. Through its U.K. registered entity, the platform will continue serving its British customers, which make up the majority of its client base.
Revolut will continue to be compliant with new EU rules for the industry, due to the completion of its crypto hub project. A representative of the company told the fintech news outlet Altfi that the online bank welcomes the EU-wide regulations and embraces the European Parliament’s intention to support innovation while ensuring strong customer protection preventing market abuse.
The comments come after the EU 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 groundbreaking package called Markets in Crypto Assets (MiCA). The legislation will give providers of crypto-related services a “passport” to serve customers across the Union under a single regulatory framework. Revolut’s spokesperson stressed that:
We recognize the CySEC’s in-depth knowledge in crypto and our efforts to lead crypto regulation by establishing an EU hub.
Other major crypto- and fintech players have been licensed by the Commission, such as Crypto.com and Etoro. Before picking Cyprus, Revolut conducted an extensive research, comparing all EU countries, the company revealed, citing Cyprus’s “sophisticated and robust regulatory regime” as well as the strength of its existing crypto industry as major factors for its choice.
“I can tell you that Cyprus welcomes the use of digital and crypto assets, but we still need to be very careful and respect not only the regulations currently in place but also the absence of any regulations,” Deputy Minister for Research, Innovation and Digital Policy Kyriacos Kokkinos stated this spring. He insisted that Cyprus needs to be mindful of the EU frameworks and unveiled that the government in Nicosia had already drafted its own “very attractive bill on crypto assets and blockchain technology.”
What do you think will happen to the number of crypto companies choosing Cyprus as a European base for crypto? Please let us know your thoughts in the comment section.
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