The London-based Revolut Bank has secured a banking license in the United Kingdom (UK). The license comes after a three-year-long regulatory approval process.
According to a July 25 announcement, the company has entered the Prudential (LON:PRU) Regulatory Authority’s (PRA) “mobilisation stage.” This approach allows startups in the banking sector time to build and develop their operations while subjecting them to certain regulatory oversight.
This means the bank currently has to operate within certain restrictions before rolling out a full-scale launch.
Nik Storonsky, the CEO of Revolut, labelled the approval as an “important milestone” for the bank, adding that the firm aims to be “the bank of choice for UK customers.”
Revolut’s foray into cryptocurrencies
The bank has made quite a name for itself within the crypto space. Since its inception, the bank has facilitated buying and selling of cryptocurrencies.
Revolut partnered with prominent crypto wallet provider MetaMask in March 2024. The integration allowed Revolut customers in the UK and the European Economic Area to purchase multiple cryptocurrencies using fiat directly within the web3 wallet.
The firm also partnered with Solana-based memecoin Bonk to launch a “Learn and Earn Campaign,” designed to boost the memecoin’s user base.
In May, the fintech firm launched Revolut X, a crypto trading platform designed for U.K. retail users. The platform aims to offer easy access to crypto assets via fiat onramps and charge minimal fees.
Revolut’s popularity in the crypto space was showcased with the launch of the memecoin Floki Inu, which surged more than 10% after getting listed on Revolut Business. The service allows businesses to send and receive payments in cryptocurrency.
However, the bank has faced several challenges along the way and had to scale back its crypto operations due to regulatory complexities as a result of Financial Conduct Authority rules.
At the moment, the bank has also suspended crypto offerings in the United States due to uncertainty over crypto regulations.
The bank currently boasts a presence in over 35 countries, with over 45 million users. According to data from PitchBook, Revolut is looking to liquidate $500 million worth of its shares, which would push its overall valuation to $40 billion.
Amidst this backdrop, some banking institutions have taken steps to distance themselves from the crypto sector. As previously reported by Invezz, banking giant HSBC (LON:HSBA) said it would block all transactions to cryptocurrency exchanges in Australia, citing a surge in scams.
This article first appeared on Invezz.com
