European digital bank Revolut has received authorization from the Cyprus Securities and Exchange Commission (CYSEC) to offer cryptocurrency services across the European Economic Area (EEA). The EEA encompasses the 27 European Union member countries, along with Iceland, Liechtenstein, and Norway.
Revolut, valued at $33 billion, is the first entity to obtain approval as a crypto-asset service provider from the Cyprus regulator. This authorization allows Revolut to provide cryptocurrency services to its 17 million customers in the EEA from a new crypto-asset hub based in Cyprus. The choice of Cyprus as its hub is attributed to the country’s advanced regulatory framework, which has also attracted other prominent crypto firms like Crypto.com, eToro, and BitPanda.
Crypto companies are striving to establish regulated entities in EU countries to ensure their ability to offer services throughout the economic bloc in anticipation of the European Union’s forthcoming Markets in Crypto-Assets regulation (MiCA). MiCA is designed to enhance consumer protection and combat scams, money laundering, and other financial crimes within the crypto industry.
With an existing customer base of 17 million across the EEA, Revolut aims to be prepared to provide cryptocurrency services once MiCA is implemented. Revolut has also confirmed that it will continue to serve its customers in the United Kingdom through its UK-based entity. Although its registration application with the UK Financial Conduct Authority (FCA) is still pending, the firm can offer crypto services in the UK through the FCA’s Temporary Registration Regime.