Financial services company Revolut has won approval from the Cyprus Securities and Exchange Commission (CYSEC) to offer Bitcoin services across the European Economic Area (EEA). This has reportedly made the London-based company the first entity to receive approval as a crypto-asset service provider (CASP) from the regulator.
The authorization will allow Revolut to provide Bitcoin and cryptocurrency services to its 17 million customers based in the EEA across the 27 member states of the EU plus Norway, Iceland, and Liechtenstein.
Revolut’s authorization comes ahead of the Markets in Crypto Assets (MiCA) regulation. MiCA is a legal framework that the EU says will provide consumer and investor protection, ensure accountability of crypto firms, and fight scams, money laundering, and other forms of financial fraud in the cryptocurrency industry.
Although the agreed text is yet to be published, digital asset firms are rushing to establish regulated entities to ensure they will be able to offer services across the EU once it is finalized. In this regard, CYSEC’s approval will enable Revolut to offer crypto services across the EEA out of a new crypto-asset hub it plans to build in Cyprus.
Revolut says it chose Cyprus due to its “sophisticated and robust regulatory regime, as well as the strength of the existing crypto industry.” The decision came after an “in-depth survey of all EU countries.”
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,
a Revolut spokesperson said.
According to the CYSEC website, Revolut has been given permission to engage in exchange between digital assets, exchange between digital assets and fiat currency, management, transfer, holding, or safekeeping of Bitcoin and cryptocurrencies, and other financial services related to digital assets.
Revolut has about 20 million customers in total, the bulk of which are in the UK. The company confirmed that it will continue to serve its existing UK customer base despite its unresolved application with the UK Financial Conduct Authority (FCA). Revolut is able to do so through the FCA’s Temporary Registration Regime.