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While digital currencies are not the primary strength of Revolut, it has joined the race for license approvals like other crypto-focused companies in and beyond Europe.
British digital bank, Revolut has received the license to operate as a digital currency service provider in Cyprus. The Cyprus Securities and Exchange Commission (CYSEC) granted the fintech firm the authorization to operate a crypto exchange business in the country, the first authorization of its kind.
This authorization will notably grant Revolut the freedom to offer its services to countries in the European Economic Area (EEA), a move that will further expand its footprint in a region that is increasingly becoming important to key Virtual Assets Service Providers (VASPs) in the digital currency ecosystem.
Many crypto trading firms have been revising their approaches to align with regulators in the European Union. The region is known to exhibit a favorable stance toward the crypto ecosystem with the successful passage of the Markets in Crypto Assets (MiCA) regulatory framework.
The passage of this bill is bound to make engagement with digital currencies clearer with all stakeholders having a first-hand understanding of what is expected of them. This has accelerated the rate at which crypto firms, especially those with foreign origins are exploring avenues to hit at least one regulatory approval with regional regulators that can grant access to the rest of the EEA prior to the implementation of the MiCA Bill.
Revolut said its choice of Cyprus is not far-fetched and is based on the currently clearer regulatory stance regarding digital currencies on the island nation. Besides Revolut, Cyprus has also attracted other major players in the space including but not limited to Crypto.com and Bitpanda.
“We welcome the EU-wide regulation and wholeheartedly embrace the European Parliament’s clear intention to support innovation whilst requiring strong customer protection measures to prevent any type of market abuse, ” a spokesperson for Revolut said, “In establishing a hub for our crypto operations in the EU, we recognise that CYSEC has in-depth knowledge of crypto and its efforts to be a leader in crypto regulation.”
Revolut Joins Pursuit of License Approvals in Europe
While digital currencies are not the primary strength of Revolut, it has joined the race for license approvals like other crypto-focused companies in and beyond Europe. With Revolut’s biggest customers previously in the UK, the company will now be able to extend its services to connect with more users in a wider jurisdiction across the board.
In consonance with the growing regulatory regime in Cyprus and how it is attracting global players, Crypto.com secured regulatory approval from CySEC. Other regions in Europe particularly Italy, Spain, Ireland, and France have also been welcoming to crypto exchanges like Binance, Coinbase Global Inc (NASDAQ: COIN), and FTX Derivatives Exchange amongst others.
Revolut on its part has been shoring up its potential and has recently added 20 new cryptocurrencies to expand its service offering to its customers across the board.