UK-based digital bank Revolut has been authorized by Cyprus to offer cryptocurrency services to millions of customers across the Old Continent. The fintech firm says regulatory approval will allow it to set up a European crypto hub in the island nation.
Rebellion to Expand Crypto Services from Cyprus to Europeans
Revolut, a leader in the Neobank sector, has received approval from the Cyprus Securities and Exchange Commission (CySEC) to work with cryptocurrencies and other digital assets. The company is planning to set up a cryptocurrency hub on the island that will allow it to offer additional services to its 17 million European customers under upcoming EU regulations.
CySEC’s approval comes after Revolut obtained similar authorization in other markets, such as Spain and Singapore, the Cyprus Mail noted in a report. These licenses will enable the London-based fintech to expand its sales to multiple jurisdictions. The platform will continue to serve its British customers, who make up the bulk of its customer base, through its UK-registered entity.
With the realization of the Crypto Hub project, Revolut wants to stay in line with the new regulations that the EU is preparing to introduce to the industry. A representative for the company told fintech news outlet Altfi that the online bank welcomes EU-wide regulations and the European Parliament’s intention to support innovation while ensuring strong customer protections to prevent market abuse. Is.
The comments came after the EU Parliament agreed to a draft of a groundbreaking package called Markets in Crypto Assets (MiCA), along with other key participants in the 27-member bloc’s legislative process, the Commission and the Council. The law would give providers of crypto-related services a “passport” to serve customers across the union under a single regulatory framework. A Revolut spokesperson also emphasized:
In establishing a center for our crypto operations in the European Union, we recognize that CySEC has a deep knowledge of crypto and its endeavor to be a leader in crypto regulation.
The commission has already licensed other major players in the fintech and crypto asset space, such as Crypto.com, eToro, CMC Markets and the English-language daily Bitpanda, commented. Before choosing Cyprus, Revolut conducted an extensive research comparing all EU countries, with the company citing Cyprus’s “sophisticated and strong regulatory regime” as well as the strength of its current crypto industry as key factors of its choice. citing disclosed.
“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 current regulations, but also the absence of any regulations,” said Deputy Research , Minister of Innovation and Digital Policy Kyriacos Kokkinos said this spring. He stressed that Cyprus needs to be mindful of the EU framework and unveiled that the government in Nicosia had already drafted a “very lucrative bill on crypto assets and blockchain technology”.
Do you expect more crypto companies to choose Cyprus for the European crypto base? Let us know in the comments section below.
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