UK-based digital bank Revolut has been approved by Cyprus to offer cryptocurrency services to millions of customers in the Old Continent. The fintech firm says regulatory approval could allow it to establish a European crypto hub on the island nation.
Revolut Expands Crypto Services For Europeans From Cyprus
Revolut, a leader in the neobank sector, is a member of the Cyprus Securities and Exchange Commission (CySEC) manipulate cryptocurrencies and other digital assets; The company plans to set up a cryptocurrency hub on the island to allow it to offer additional services to its 17 million European customers under upcoming EU regulations.
The CySEC approval comes after Revolut obtained similar approvals in other markets such as Spain and Singapore, Cyprus Mail notes in its report. These licenses will allow the London-headquartered fintech to expand its sales in many jurisdictions. The platform will continue to serve its UK clients, which form the bulk of its customer base, through UK registered entities.
With the Crypto Hub project coming to fruition, Revolut wants to stay compliant with new regulations that the European Union is preparing to introduce into the industry. A company representative told fintech news outlet Altfi that online banks welcome the EU-wide regulation, embracing the European Parliament’s intention to support innovation while ensuring strong customer protections that prevent market abuse. said.
Comments come after EU parliament agreed Along with other key participants in the legislative process of the 27-member bloc, the European Commission and Council, on drafting a landmark package called Markets in Crypto Assets (MiCA). The law provides the provider of cryptocurrency-related services with a “passport” to serve her EU-wide customers under a single regulatory framework. A Revolut spokesperson also emphasized:
In establishing a hub for cryptocurrency business in the EU, we recognize CySEC’s deep knowledge of cryptocurrencies and its commitment to becoming a leader in cryptocurrency regulation.
The European Commission has already granted licenses to other major players in the fintech and cryptocurrency space, including Crypto.com, Etoro, CMC Markets and Bitpanda, the English-language daily said. Before choosing Cyprus, Revolut reveals it conducted extensive research comparing all her EU countries, choosing Cyprus’ “sophisticated and robust regulatory regime” and the strength of the existing crypto industry. cited as the main factor.
“It can be said that Cyprus welcomes the use of digital and crypto assets, but the lack of regulation, as well as the regulations currently in place, need to be taken into account and respected,” said the study. , Deputy Minister for Innovation and Digital Kyriacos Kokkinos announced a policy this spring. He argued that Cyprus needs to take note of her EU framework, making it clear that the Nicosia government has already taken note of the EU framework. drafted Unique “Highly Attractive Bill on Crypto Assets and Blockchain Technology”.
Do you think more crypto companies will choose Cyprus as their European crypto base? Let us know in the comments section below.
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