A British fintech firm has achieved a significant regulatory milestone by obtaining a Markets in Crypto Assets license from the Cyprus Securities and Exchange Commission (CySEC). This approval enables the company to offer cryptocurrency services across all 30 nations within the European Economic Area. The announcement follows closely on the heels of a successful bid for a banking license in Mexico, allowing them to receive deposits and issue loans as a licensed financial institution in that region.
This new license underscores CySEC’s confidence in the company’s adherence to regulatory standards. The representative from the company highlighted that the Markets in Crypto Assets Regulation (MiCA) provides a framework for offering innovative and secure cryptocurrency products, catering to the expanding digital finance market in Europe.
In conjunction with the new license, the company has unveiled plans for an upgraded platform termed “Crypto 2.0.” This new offering is set to feature access to over 280 digital tokens as well as a staking feature that allows users to earn returns on their cryptocurrency holdings without incurring platform fees. The staking options could yield annual returns of up to 22%, although these returns are subject to market fluctuations and are not guaranteed.
Additionally, the platform aims to facilitate the conversion of stablecoins to U.S. dollars at a one-to-one basis without any price spreads, providing a more cost-effective solution for swapping between digital and fiat currencies.
The timing of this regulatory success coincides with the introduction of MiCA, a new regulatory framework in Europe that aims to enhance transparency and consumer protection within the crypto exchange industry. This regulatory environment has encouraged firms to invest substantial efforts to ensure compliance. Many exchanges have temporarily halted new customer registrations to reorganize in line with these new rules.
Approximately 65% of European cryptocurrency platforms are expected to be compliant with the MiCA guidelines by the end of 2025. Failure to meet these standards may result in fines that could amount to over €1.2 billion this year across the industry.
Expanding beyond the realm of digital banking, the recent licensing achievements include a noteworthy success in Mexico, where the local banking authority approved the establishment of operations as a Multiple Banking Institution. This makes the fintech a pioneer as the first independent digital bank to navigate the complete licensing process in Mexico.
Company representatives have indicated plans to begin onboarding customers who were on a waitlist shortly, estimating that they may engage as many as 1.5 million clients within the first year of operations in Mexico based on earlier sign-up numbers.
Additionally, the company has ambitions to obtain banking licenses in Colombia and is exploring the acquisition of a bank in Argentina, continuing its expansion after initiating its services in Brazil in 2023. Recently, the firm declared intentions to invest £10 billion over five years, with goals to elevate its customer base from 65 million to 100 million by mid-2027.
However, there have been challenges along the way. In the UK, the company is experiencing delays in receiving a full banking license, largely attributed to concerns regarding its risk management protocols amid rapid global expansion efforts.
The operations in Cyprus will act as the central hub for its cryptocurrency activities across the EEA, backing various services including the Revolut X trading platform and partnerships with third-party digital wallets such as MetaMask and Ledger. As the company continues to fine-tune its offerings, it aims to solidify its presence in the evolving financial landscape while adhering to increasing regulatory standards.