Revolut Gets the Green Light

The United Kingdom’s Financial Conduct Authority (FCA) has officially welcomed cryptocurrency payments app Revolut into its circle of approved crypto service providers. This decision came with an update to the FCA’s list of registered crypto asset firms, confirming that Revolut has met the necessary regulations since the overhaul of Money Laundering and Terrorist Financing rules back in 2017.

Temporary Registration: A Bumpy Ride

For those keeping score, Revolut was operating under a temporary registration since March, amid a much-needed regulatory cleanup regarding Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT). Let’s not forget, since the crackdown began, companies have had to tick all compliance boxes, lest they find themselves on the wrong side of the law. Until now, Revolut was the last of the original twelve companies that had received this temporary status, gingerly walking the rope of compliance while the FCA was tightening its embrace around crypto regulations.

FCA’s Stance on Crypto Firms

As part of a broader strategy that has been in place since 2020, all companies offering cryptocurrencies in the U.K. must register with the FCA. While this regulation aims to instill confidence and safety in the fast-paced crypto landscape, it has also left some firms scrambling to keep their operations afloat. Companies like Revolut can now breathe a sigh of relief as they move forward with full authorization.

Audit Controversy and Valuation

Of course, no good news comes without a sprinkle of concern. A recent report from the Financial Times uncovered some audit irregularities at Revolut, highlighting an “unacceptably high” risk of material misstatements. While these revelations raised eyebrows, investors remain bullish on the fintech firm, which stands at a whopping $33 billion in valuation post an $800 million investment round. Talk about keeping your investors on their toes!

Political Landscape Shifts and Corporate Transparency

The backdrop to these developments is quite dramatic. The U.K. recently welcomed a new Prime Minister, following the historic passing of Queen Elizabeth II. In a swift political turn, the government unveiled the Economic Crime and Corporate Transparency Bill on September 22. This ambitious legislation aims to empower law enforcement agencies with the ability to seize and recover crypto assets, marking an intense push towards financial transparency in the crypto sector. Yet, one got to wonder whether this newfound focus on regulation will also bolster the UK’s ambitions to remain a leading global hub for innovative crypto technologies.