- Revolut entered the crypto market with Revolut X.
- Legal uncertainty and competition may impact Revolut’s cryptocurrency expansion.
May 7th, RevoluteThe UK-based fintech company known for its mobile banking and payment solutions has taken a big step into the cryptocurrency space with Revolut X.
Regarding the motivation behind this move, Leonid Vasilikov, head of crypto exchange products at Revolut, told The Block:
“We put our customers at the center of everything we do and understand that competitive fees and easy on/off ramping are at the heart of what experienced traders look for in a crypto platform.”
The reason behind Revolut’s move
In line with the global growth of the cryptocurrency market, Revolut has stepped up its cryptocurrency activities in recent years.
In March, it partnered with MetaMask (operated by ConsenSys) to launch Revolut Ramp, a platform for direct crypto purchases in the UK and Europe.
Regarding the same, Vasilikov added in a conversation with payment experts:
“Revolut X, along with our recent partnership with MetaMask, further strengthens our product offering in the Web3 world.”
Revolut’s crypto dream: It’s not that easy
Amid these developments, a recent legal skirmish between the SEC and ConsenSys has added further uncertainty to the situation.
Furthermore, Revolut’s launch of Revolut X in the cryptocurrency market contrasted with its withdrawal from providing cryptocurrency services to US customers in August 2023.
This decision was due to unclear regulations and market uncertainty in the US, which affected 1% of users.
What’s interesting is that it could face stiff competition from established rivals like Binance. [BNB]Coinbase, Bybit, OKX.
Notably, this event coincides with the preparation of UK legislation governing stablecoins and various aspects of cryptocurrencies, including staking, exchange and storage.
The Minister of Economic Affairs also made a similar statement. Bim AfolamiSpeaking at the Innovation Finance Global Summit, he added:
“Once operational, all crypto-asset activities, including exchange operations and custody of customer assets, will be within the scope of regulation for the first time.”
