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The UK challenger bank has won registration from the Financial Conduct Authority (FCA) after a prolonged approval process.
Revolut, the UK’s most valuable fintech, has had its crypto licence officiated by the FCA, after more than a year spent operating under a temporary waiver.
Through the waiver regime, introduced after the FCA’s registration deadline closed, Revolut has still been able to offer crypto services.
Revolut was one of five firms operating under this regime, along with CEX.I0, Copper Technologies, GlobalBlock and Moneybrain. None of the other four firms has subsequently been approved.
Revolut, which offers crypto trading, is estimated to have around 20m customers worldwide and offers exposure to about 80 crypto-assets.
It will be some relief for the firm, which is still awaiting a UK banking licence, after a turbulent period that has seen compliance staff come and go.
It has been assumed by both the industry and the press that Revolut’s hold-up with the FCA revolved around anti-money laundering issues, which have proven a headache for many challengers.
For example, Monzo faced an FCA investigation, while Germany’s N26 has dealt with scrutiny from Bafin and Italy’s central bank.
Although Revolut still awaits a UK banking licence, it has received one from the EU.
In December 2021, the Bank of Lithuania, which Revolut is registered with, announced that the European Central Bank had granted the company an EU-wide banking licence.
The EU also granted Revolut a crypto licence quicker. In August, Cyprus’ Securities and Exchange Commission approved its registration to offer services in the trading bloc.
Revolut first made an application to the FCA in January last year, and the slow process has drawn ire from its outspoken chief executive, Nik Storonsky.
Storonsky expressed his frustration at FCA officials in the summer, complaining that they needed stricter timelines and “more efficient people”.
