Digital banking platform, Revolut has been awarded authorization by the Cyprus Securities and Exchange Commission (CYSEC) to expand its crypto services across the European Economic Area (EEA).
According to a new report, Revolut has become the first entity to be awarded crypto-asset service provider (CASP) from the regulator of the island country. The news comes amidst its 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 such as CryptoCom, eToro, CMC markets, and Bitpanda.
A spokesperson of the app also attributed the CYSEC agency’s sophistication and robust regulatory regime to the latest move.
“We welcome the EU-wide regulation and wholeheartedly embrace the European Parliament’s clear intention to support innovation whilst requiring strong customer protection measures to prevent any type of market abuse. In establishing a hub for our crypto operations in the EU, we recognize that CYSEC has in-depth knowledge of crypto and its efforts to be a leader in crypto regulation.”
In addition to Cyprus, Revolut also acquired crypto authorization from the Spanish Central Bank and the Monetary Authority of Singapore (MAS). The British fintech company is also planning to ramp up crypto-focused staff by 20% across the UK, US, and Europe over the next six months. This year alone, Revolute onboarded 43 such staff members. It also added 22 new crypto-assets to its trading service.
The development comes ahead of the newly agreed Markets in Crypto Assets (MiCA) law. The policymakers have been haggling for nearly two years over the MiCA framework but will finally come into force by the end of 2023. It is part of the European Commission’s digital finance strategy.
As such, MiCA aims to ensure legal certainty by setting up a sound legal framework for crypto-assets in its scope that have previously been left out of the purview of existing financial services legislation.
Supporting innovation and fair competition will also be one of its focus areas while simultaneously protecting market participants from the potential risks associated with crypto assets. Furthermore, it will also address risks associated with financial stability.
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