UK fintech company Revolut, established in 2015, launched its Bitcoin trading, custody, and transfer services in 2017. It currently offers trading and transfers for over 30 types of tokens. However, since announcing in August that it would no longer provide cryptocurrency services to US users, it has also temporarily suspended UK corporate customers from purchasing cryptocurrencies. Bloomberg reports that its revenue is expected to increase significantly in 2023, but there still seems to be no sign of progress regarding its application for a UK banking license.
According to The Block’s report, Revolut’s UK corporate customers can no longer purchase new digital assets, but they can still hold or sell cryptocurrencies. Revolut is “pausing the service to allow more time to adapt to the new requirements set by the Financial Conduct Authority in October.” Retail customers are currently unaffected.
Revolut stated in an email:
Advertisement – Continue Reading Below
This measure aims to enhance the customer journey and provide additional protection for both new and existing investors in cryptocurrencies. We need to adjust our current business cryptocurrency products to ensure that all new requirements are met.
Revolut announced in August that it would no longer provide cryptocurrency services to US users, citing challenges in the regulatory environment in the US.
According to Bloomberg, Revolut’s revenue is expected to reach $1.9 billion this year, far surpassing last year’s $1 billion.
This startup company was valued at $33 billion in its latest financing round in 2021 but has yet to receive a banking license from UK regulatory authorities. It was previously found by the UK Financial Reporting Council to have deficiencies in its audits and a high risk of misreporting, putting pressure on Revolut to improve its internal financial reporting controls. Revolut is expected to release its audited financial statements for 2022 in the near future, but it is already several months late.
Earlier this year, interest income generated by Revolut’s business across Europe was three times its foreign exchange income. Cryptocurrency activities once brought significant benefits to the company in 2021 but have now declined to less than 5% of the platform’s total volume.
Financial technology consultant Meaghan Johnson said:
If they ultimately overcome the challenges of UK regulation (referring to the banking license), they will open up many new areas for them to explore in terms of product development.
Revolut
UK
Further reading
UK fintech bank Revolut terminates US cryptocurrency services: regulatory environment is challenging
Curve complains that neobank Revolut is not crypto-friendly! Andre Cronje: Building a crypto-friendly bank, opening this year!