Two prominent crypto companies, Coinbase and Revolut, faced contrasting fates with UK authorities recently. While the UK’s Financial Conduct Authority (FCA) slapped Coinbase’s subsidiary, CB Payments Limited (CBPL), with a hefty £3.5 million fine for Anti-Money Laundering breaches, Revolut celebrated receiving a restricted banking license from the UK’s Prudential Regulation Authority (PRA).
The FCA’s fine on CBPL stemmed from the subsidiary’s repeated violations of the regulatory body’s guidelines. Despite an initial £5 million penalty, CBPL saw a reduction to £3.5 million due to a settlement discount. The FCA highlighted CBPL’s failure to adhere to its commitments made in October 2020, especially concerning onboarding and serving high-risk customers. This non-compliance significantly increased the risk of financial crime being facilitated, leading to the FCA’s intervention.
On the other hand, Revolut’s achievement of receiving a restricted banking license marks a significant milestone for the challenger bank in the UK. After more than three years since the initial application in 2021, Revolut has entered the mobilization stage with the PRA’s approval. The UK CEO of Revolut, Francesca Carlesi, emphasized the responsibility the bank holds and their dedication to enhancing the financial lives of their users.
Revolut’s recent developments in the crypto industry, such as the launch of Revolut X, a dedicated crypto exchange for retail customers, showcase the firm’s commitment to innovation and expanding its offerings. This move highlights Revolut’s focus on empowering its users with access to crypto services in addition to traditional banking products.
Through these recent events, the diverging paths taken by Coinbase and Revolut in their interactions with UK authorities underscore the importance of regulatory compliance and responsibility within the crypto industry. While Coinbase faced financial penalties for failing to meet AML guidelines, Revolut’s successful licensing signals its commitment to growth and compliance in the banking sector. As the crypto landscape continues to evolve, companies must navigate regulatory frameworks diligently to maintain trust and stability within the industry.
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