Cyprus has given the U.K.-based digital bank Revolut permission to offer cryptocurrency services to millions of customers on the European continent. According to the fintech company, the island nation will now have a European crypto hub thanks to regulatory approval.
Revolut, a pioneer in the neobank industry, has been given permission to work with cryptocurrencies and other digital assets by the Cyprus Securities and Exchange Commission (CySEC). According to the upcoming regulations of the EU, the company intends to set up a cryptocurrency hub on the island to enable it to provide additional services to its 17 million European clients.
Following similar approvals in other markets, including Spain and Singapore, Revolut now has CySEC’s approval, the Cyprus Mail noted in a report. The fintech company with its headquarters in London will be able to increase its sales in several countries thanks to these licenses. Through its U.K.-registered entity, the platform will continue to provide services to its British customers, who make up the majority of its clientele.
Revolut wants to comply with the new regulations the European Union is getting ready to enact for the industry as the crypto hub project is realized. The online bank welcomes the EU-wide regulations and supports the European Parliament’s intention to support innovation while ensuring strong customer protection and preventing market abuse, a representative of the company told the fintech news outlet Altfi.
The remarks follow the EU Parliament’s agreement with the Commission and Council, along with other significant players in the 27-member bloc’s legislative process, on the draft of a ground-breaking bill titled Markets in Crypto Assets (MiCA). The legislation will grant “passports” to service providers of crypto-related services, enabling them to serve clients throughout the EU within a single regulatory framework. Moreover, the Revolut spokesperson.
In establishing a hub for our crypto operations in the EU, we recognize that CySEC has in-depth knowledge of crypto and its efforts to be a leader in crypto regulation.
The English-language daily noted that the Commission has already licensed other significant players in the fintech and crypto asset space, including Crypto.com, Etoro, CMC markets, and Bitpanda. According to the company, Revolut conducted a thorough analysis of all EU nations before deciding on Cyprus, and it cited Cyprus’s “sophisticated and robust regulatory regime” as well as the strength of its current crypto industry as key deciding factors.
Deputy Minister for Research, Innovation, and Digital Policy Kyriacos Kokkinos said this spring, “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.” 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.”