Revolut approved to offer crypto services by the Cyprus Securities and Exchange Commission (CYSEC). CYSEC has granted authorization to European digital bank Revolut, enabling it to provide cryptocurrency services within the European Economic Area (EEA).
Revolut, which has a market cap of $33 billion, was announced as the first organization to receive a crypto-asset service provider (CASP) designation from CYSEC on August 12.
Revolut Approved To Offer Crypto Services By Cyprus Regulator
The approval would allow Revolut to operate a new crypto-asset hub in Cyprus and provide cryptocurrency services to its 17 million EEA consumers. Revolut claimed that its decision was influenced by the island nation’s advanced regulatory framework, which also attracted companies like Crypto.com, eToro, and Bitpanda.
Ahead of the implementation of the European Union’s Markets in Crypto-Assets regulation (MiCA), crypto businesses are aiming to create regulated organizations in EU nations in order to provide services across the economic bloc.
MiCA was created with the goal of offering excellent consumer protection and eradicating fraud, money laundering, and other financial crime in the cryptocurrency sector.
Revolut wants to make sure that it will be allowed to provide crypto services to its 17 million consumers in the EEA if MiCA is passed into law.
Revolut also affirmed that its U.K.-based business will continue to service British consumers. Although the Financial Conduct Authority (FCA) of the United Kingdom (UK) has yet to resolve its registration application, the company is still permitted to provide cryptocurrency services there under the FCA’s Temporary Registration Regime (TRR).
The digital banking company has almost 20 million clients globally and currently provides exposure to 80 cryptocurrencies after adding more than 20 new ones at the beginning of this month, including APE, AVAX, and SAND.
MiCA Bill Will Prevent Collapses Like Terra
The Terra collapse would not have been conceivable under the legal standards outlined in the EU’s Markets in Crypto Assets (MiCA) bill, a representative of the European Union told conference delegates at Korea Blockchain Week in Seoul earlier this month.
The bill’s proposed compliance criteria, according to Peter Kerstens, a technology and cybersecurity policy consultant at the executive branch of the EU, would make stablecoin projects more visible and enable them to redeem customer holdings upon request.
“We don’t want people to blow up the system or just go bust without any recourse, as we’ve seen for example recently with Terra-LUNA, which just melted away,” Kerstens said. “MiCA prevents such schemes from coming onto the market.”
The legal framework hasn’t been made into law yet.
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