Revolut, the digital bank based in the United Kingdom, has received authorization from Cyprus for providing crypto services to people on the Old continent.
According to the fintech, this regulatory approval will enable it in establishing a European crypto hub and cater to millions of customers in the island nation.
The Cyprus Securities and Exchange Commission (CySEC) has granted approval to Revolut, which is recognized as a leader in the neobank sector, to provide crypto services.
The company has plans of establishing a crypto hub on Cyprus that will enable it to provide its 17 million European customers with additional services under the upcoming regulations of the European Union.
The approval from CySEC comes after similar authorizations were obtained by Revolut in a number of other markets, such as Singapore and Spain.
Thanks to these licenses, the fintech, which is headquartered in London, will be able to expand its business in a number of jurisdictions.
It will also continue to provide its services to its clients in Britain, as they make up most of its client base, and it will do so via its entity registered in the United Kingdom.
Revolut wants to use its crypto hub project for ensuring compliance with the new rules that have been developed for the crypto market for implementation in the European Union.
According to a representative of Revolut, the online bank is ready to accept the regulations that will be introduced in the European Union.
In addition, the online bank is pleased with the intention of the European Parliament to create a supportive environment for innovation without making any compromises in terms of consumer protection.
Plus, it also expresses their commitment to prevent market abuse. These comments come after the groundbreaking regulatory framework titled MiCA (Markets in Crypto Assets) was developed.
The package was agreed upon by the EU parliament, the European Commission and the Council and other key participants in the legislative process of the 27-member bloc.
Thanks to this legislation, those who provide crypto-related services will be able to operate under one regulatory framework throughout the union and cater to clients.
A spokesperson for Revolut also said that they had chosen Cyprus for establishing their base of crypto operations because of its in-depth knowledge of the crypto sector and its efforts in terms of crypto regulation.
A number of other companies have already been licensed by the Commission in the crypto asset and fintech space, including Bitpanda, CMC Markets, Etoro and Crypto.com.
Before Revolut opted for Cyprus, it had done a great deal of research and compared several countries in the European Union.
It had then opted for Cyprus because of its robust and sophisticated regulatory regime and the strength of the island’s crypto industry.
The use of digital and crypto assets has been welcomed in Cyprus, but companies have to comply with existing regulations.
EU frameworks should also be complied with, including those that have already been introduced and others that will be.