Revolut Secures MiCA Crypto License in Cyprus

The Cyprus Securities and Exchange Commission (CySEC) has granted Revolut a Markets in Crypto-Assets license, representing a crucial regulatory achievement for one of Europe’s most prominent digital banks. This authorization allows Revolut to leverage MiCA’s ‘passporting’ provision, enabling the company to provide and market crypto-asset services across all 30 markets within the European Economic Area. Costas Michael, CEO of Revolut Digital Assets Europe, emphasized the significance of this development, stating that receiving the license ‘is a significant step in our journey, reflecting CySEC’s confidence in our commitment to regulatory compliance in crypto.’

This regulatory approval builds upon Revolut’s established presence in the crypto sector, where the company has offered crypto trading services since 2017. The MiCA license represents the latest expansion of Revolut’s digital asset offerings, following the November 2024 launch of Revolut X, a standalone crypto exchange available across all EEA countries. The desktop-based platform enables users to trade 200 cryptocurrencies, demonstrating Revolut’s continued commitment to broadening its crypto services despite ongoing regulatory scrutiny from individual EU states.

Revolut’s Cyprus-based strategy mirrors approaches taken by other major crypto players. In January, Coinbase acquired the Cyprus-based unit of BUX, rebranding it as Coinbase Financial Services Europe ahead of securing its own European MiCA license in Luxembourg. This pattern highlights Cyprus’s emerging role as a strategic gateway for companies seeking MiCA approval and access to the broader European market.

The MiCA license opens a clear pathway for Revolut to potentially issue its own stablecoin, though the regulatory framework requires careful navigation. According to Sadri Sali, a Netherlands-based lawyer specializing in EU crypto regulation, ‘In practical terms, Revolut is now positioned to legally issue its own stablecoin under the EU framework.’ However, Sali clarified that the MiCA license itself ‘does not grant permission for the issuance of stablecoins,’ noting that according to MiCA Title IV, ‘the issuance of e-money tokens is restricted to credit institutions and electronic money institutions.’

Revolut’s existing Electronic Money Institution license in Lithuania provides the necessary legal foundation for stablecoin issuance. Sali explained that should Revolut decide to proceed, the company would need to ‘activate their Lithuanian Electronic Money License and ensure compliance with European Banking Authority supervision should the token attain a level of significance.’ This process would require drafting ‘a whitepaper that adheres to MiCA standards while also guaranteeing complete compliance with reserve, governance, and redemption protocols.’

The speculation around a Revolut stablecoin has circulated for more than a year, with sources confirming in June 2025 that the bank was continuing to pursue the creation of its own stablecoin. However, market sentiment remains cautious, with users on prediction market Myriad placing just a 25% chance on Revolut launching a stablecoin before the end of the year. Sali projects that ‘the introduction of a Revolut stablecoin by 2026 appears to be a plausible development, particularly once the issuer regime under MiCA is fully operational.’

Revolut’s MiCA license represents more than just regulatory compliance—it signals the company’s ambitious plans for the crypto sector. Michael’s statement that ‘it’s no secret that we have ambitious plans for the crypto sector in the future, and our MiCA licence is fundamental to all of that’ underscores the strategic importance of this regulatory milestone. The license enables Revolut to operate with greater certainty across European markets while positioning the company as a leader in the convergence of traditional finance and digital assets.

Concurrently with the license announcement, Revolut revealed plans to launch ‘1:1 conversion between stablecoins and USD’ without spreads, eliminating the difference between buy and sell prices for currencies. This enhancement to its crypto services demonstrates Revolut’s commitment to improving user experience and expanding its digital asset offerings, potentially creating a more seamless ecosystem for future stablecoin integration.

The broader market implications are significant, as Sali notes that Revolut has ‘provided a clear framework for action’ for other companies considering stablecoin issuance in the EU. However, he observes that many smaller and mid-sized challenger banks may be deterred by the substantial compliance costs associated with EU anti-money-laundering provisions, which could require ‘hundreds’ of salaried compliance officers. This dynamic suggests that larger, well-resourced players like Revolut may have a distinct advantage in navigating Europe’s evolving crypto regulatory landscape.