Revolut receives crypto clearance from Cyprus regulator

Revolut receives crypto clearance from Cyprus regulator

Digital banking platform, Revolut, has received clearance from the Cyprus Securities and Exchange Commission (CYSEC) to expand its crypto services in the European Economic Area (EEA).

According to a new report, Revolut has become the first entity to obtain crypto asset service provider (CASP) from the island country regulator. The news comes amid his ongoing hiring spree despite a lackluster market.

Cyprus Crypto Authorization

With the new authorization, the company will be able to offer crypto services to its 17 million customers in the EEA region from the newly developed hub in Cyprus. Revolut emphasized that it chose Cyprus after surveying other EU countries. Notably, the nation is home to popular crypto platforms like CryptoCom, eToro, CMC Markets, and Bitpanda.

A spokesperson for the app also attributed the sophistication and strong regulatory regime of the CYSEC agency to the latest move.

“We welcome regulation at the EU level and wholeheartedly embrace the clear intention of the European Parliament to support innovation while requiring strong customer protection measures to prevent any kind of market abuse. By establishing a hub for our cryptocurrency operations in the EU, we recognize that CYSEC has a deep understanding of cryptocurrency and its efforts to be a leader in crypto regulation.”

In addition to Cyprus, Revolut also acquired crypto authorization from the Central Bank of Spain and the Monetary Authority of Singapore (MAS). The British fintech company also plans to increase crypto-focused staff by 20% in the UK, US and Europe over the next six months. This year alone, Revolute brought on 43 of these staff members. It also added 22 new crypto assets to its trading service.

Mica

The development is ahead of the recently agreed Markets in Crypto Assets Act (MiCA). Lawmakers have been haggling over the MiCA framework for almost two years, but it will finally come into force at the end of 2023. It is part of the European Commission’s digital finance strategy.

As such, MiCA aims to ensure legal certainty by establishing a strong legal framework for crypto assets in its purview that had previously been left out of the reach of existing financial services legislation.

Supporting innovation and fair competition will also be one of its focus areas while protecting market participants from potential risks associated with crypto assets. In addition, it will also address the risks associated with financial stability.

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