Revolut Secures Crypto Asset License
Revolut, the prominent British fintech firm, has achieved a significant milestone by securing a crucial crypto asset service provider license from the Cyprus Securities and Exchange Commission. This licensing achievement, reported by Reuters on October 23, allows the company to enhance and maintain its cryptocurrency services for its vast user base throughout the European Union.
Impact of the MiCA Legislation
With the license granted under the EU’s groundbreaking Markets in Crypto-Assets (MiCA) legislation, Revolut can now offer its crypto offerings across all 27 member nations without dealing with a complex array of national regulations. This regulatory approval positions Revolut favorably among a competitive landscape of fintech companies striving to comply with MiCA standards.
Growth and User Engagement
For a company valued at $75 billion, which has seen its crypto services emerge as a key element of growth, this license guarantees seamless access to one of its most engaged markets. Revolut ventured into the digital currency arena early, launching crypto trading in 2017. Currently, the firm boasts a global client base exceeding 65 million, with approximately 14 million, equating to 22%, actively participating in cryptocurrency trading.
Their latest annual report highlights a remarkable surge of nearly 300% in revenue from its “Wealth” sector, reflecting its crypto endeavors, amounting to $674 million last year. This substantial growth is largely attributable to heightened trading activity and the unveiling of its recently established Revolut X exchange, indicating the deep integration of digital assets into the company’s financial strategy.
Broader Trends in Fintech
This explosive growth aligns with a broader trend in the finance sector, where digital currencies are becoming fundamental to fintech operations. Major payment entities, such as PayPal and Stripe, have expanded their cryptocurrency services, while platforms like Robinhood and investment management giant BlackRock have also broadened their digital asset offerings.
Recent Developments
Additionally, Revolut’s rapid expansion was recently highlighted by its successful bid to obtain final regulatory approval for full banking operations in Mexico, making it the first fully licensed independent digital bank to launch in the country from scratch. Furthermore, just prior to the MiCA licensing news, Revolut announced its acquisition of the AI-based travel startup Swifty on October 14, indicating its commitment to advancing its loyalty and AI assistant programs with innovative lifestyle technologies.
