Cyprus Securities and Exchange Commission (CYSEC) has issued another authorization to a European digital bank known as Revolut.
Henceforth, the digital bank can offer its crypto services across the European Economic Area (EEA). The EEA includes Iceland, Liechtenstein, Norway, and 27 other countries in the European Union. This makes Revolut the first entity to receive approval from CySEC as a virtual assets service provider (VASP).
Cumulatively, there are 447 million people in the EEA, out of which 17 million are Revolut users. With this authorization, the British financial technology company’s 17 million users can buy, sell, and store crypto on the Revolut platform. The crypto trading services will be offered from a new digital assets hub located in Cyprus.
Revolut Pursued CySEC Approval Before MiCA
Revolut which is valued at $33 billion, mentioned that its choice to enter Cyprus was due to the sophisticated regulatory regime of the country. This same regulated infrastructure has also attracted other crypto firms like Crypto.com, eToro, and BitPanda.
The fintech company put in much effort to receive this approval before the launch of the European Union’s Markets in Crypto Assets regulation (MiCA). Revolut believed that this gives it an edge over other crypto firms after the enactment of the MiCA.
The reason is that once the MiCA framework is enacted, exchanges can pick a state to launch their activities.
The MiCA framework was provisionally designed by the European Union and European Parliament. To enumerate, the MiCA regulation permits cryptocurrency service providers to offer their products and services across the EU with only one national authorization. Also, MiCA is designed to provide crypto users with protection against money laundering schemes and other criminal activities.
Earlier, the Cyprus regulator provided one of the world’s fastest-growing cryptocurrency exchanges, Crypto.com with approval to offer its services in Cyprus. For Revolut, this is another giant stride in its effort to become globally recognized.
A few weeks ago, the fintech company secured approval to begin trading in the Singaporean territory. With the approval, Revolut can now trade up to 80 cryptos including Bitcoin (BTC) and Ethereum (ETH) in Singapore.