Revolut obtains the first CASP approval from CySEC. British neobank Revolut is clearly determined to position itself for the next bull market. After announcing a 20% increase in its workforce (including 13 crypto-related positions), it has just obtained the famous CASP approval issued by CySEC, the Cypriot regulator. Pretty much, it's the equivalent of a PSAN approval in France.
Revolut is the first to obtain CASP clearance from CySEC
The Cyprus Securities and Exchange Commission (CySEC) has granted Revolut its very first CASP ( crypto-asset service provider ) license, a specific legal document created for crypto platforms.
Thanks to this status, the subsidiary of the British neobank can now operate from Cyprus to offer its crypto trading services to its 17 million customers in the European Economic Area (EEA).
The choice of a domiciliation in Cyprus is due, according to the neobank, to its “sophisticated and robust regulatory regime, as well as the strength of the existing crypto industry in Cyprus ”.
Translation: in addition to its accommodating taxation, the Cypriot regulatory framework is the most stable and advanced in Europe.
"By establishing a hub for our crypto operations in the EU, we recognize that CySEC has an in-depth knowledge of crypto and its efforts to be a regulatory leader in the field."
Revolut's new Cypriot license follows a market trend, following competitors Gemini ( Ireland ), Crypto.com ( Italy ), Coinbase ( Italy ), eToro ( France ), and of course Binance ( France, Italy, Spain ).
Present on the crypto market since 2017, the British fintech derives significant revenue from this activity: 50 million euros in 2020, then double in 2021. A growth lever that is no stranger to its current valuation – 33 billion dollars – when its German competitor N26 is struggling to exceed 10 billion.
Finally a crypto wallet in the Revolut offer?
So far Revolut has offered to “invest” in 80 cryptocurrencies in its mobile app without having access to private keys. Quotation marks are required because the client did not hold cryptocurrencies, strictly speaking, he held open positions on derivatives replicating the price of the underlying cryptocurrency.
Clearly, it was in the legal sense of trading, like CFD brokers who offer to trade cryptos through these instruments. No transfer or payment in crypto is possible.
We can therefore expect things to change. Nick Storonsky, CEO of Revolut, told Reuters last April that the team was working on integrating a crypto wallet into its app:
"For example…decentralized wallets and enabling crypto deposits, withdrawals, staking, and lending – this is something that is missing and we are working on."
The obstacle was obviously legal (how to find a digital asset provider license?)
After integrating Nasdaq shares, commodities, and bonds into its mobile application, Revolut would become a significant player in online financial services, like PayPal, with its wallet.
Revolut moves and anticipates the entry into force of the European MiCA law on crypto-assets
The timing of the neobank's announcement owes nothing to chance. It is clear that Revolut has been working hard to receive its license before the new European Union Regulation on Crypto Asset Markets (MiCA) comes into force.
Inspired by the PACTE law (May 2019), the MiCA law was voted on March 14 by the Economic and Monetary Affairs Committee (ECON) of Parliament – then adopted by 31 votes for, 4 against, and 23 blank votes.
The text proposes a new framework for players in the sector: more transparency for individuals, very strict obligations for stablecoins, even if it means curbing innovation in Europe, and measures to further combat the financial crime that is rampant in Europe. ecosystem.
Except that the debates will still last several months between the representatives of the European Parliament, those of the Council, and those of the European Commission to reach a final text.
This will then be published in the Official Journal of the European Union, to finally come into force at a deadline of 18 months, the time for all the players to comply.
Present on the crypto market since 2017, the British neobank Revolut, launched in 2015, has been popularized thanks to its low-cost exchange services.
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