Coinbase and Revolut, two key players in the crypto industry, recently faced vastly different regulatory outcomes in the UK. While Coinbase subsidiary CB Payments Limited (CBPL) was fined a substantial sum of £3.5 million for Anti-Money Laundering breaches, Revolut obtained a restricted banking license from the UK’s Prudential Regulation Authority (PRA).
The UK’s Financial Conduct Authority (FCA) imposed a £3.5 million fine on CBPL for repeatedly violating its Anti-Money Laundering guidelines. Despite initial efforts to strengthen financial crime control policies following a regulatory visit, CBPL continued to onboard and serve a significant number of high-risk customers. This failure to comply with recommended controls raised concerns about the risk of financial crime facilitation on the platform.
In contrast, Revolut’s achievement of obtaining a restricted banking license from the PRA represents a significant milestone for the challenger bank. More than three years after submitting its initial application, Revolut now enters the mobilization stage with plans to offer products and services aimed at improving the financial lives of its users.
Revolut’s foray into the crypto industry has also seen notable developments, such as the launch of Revolut X, a standalone crypto exchange catering to retail customers. This move highlights Revolut’s commitment to expanding its offerings in the digital asset space and enhancing its position in the competitive crypto market.
The contrasting fortunes of Coinbase and Revolut with UK authorities underscore the importance of regulatory compliance and oversight in the crypto industry. While Coinbase faced regulatory scrutiny and a substantial fine for compliance failures, Revolut’s successful licensing application signals its commitment to regulatory adherence and responsible financial services provision. As the crypto industry continues to evolve, regulatory compliance will remain a key factor influencing the success and reputation of companies operating in this space.
