The launch of Revolut’s dedicated cryptocurrency exchange marks a significant advancement for UK crypto according to Coincover.
With regulatory advancements seemingly moving in a positive direction, the arrival of Revolut X is a timely reminder of the UK’s accelerated efforts to diversify its financial landscape by openly embracing crypto and other digital assets.
Alex Saleh, Head of Partnerships at blockchain protection firm Coincover, believes that whilst talks of regulating the sector may hinder aspects of innovation, it is promising that one of the leading European fintechs is committing to crypto as strongly as it is.
He said: “Revolut’s launch of its new crypto exchange is a significant advancement in UK crypto, and demonstrates a significant turnaround from the regulatory uncertainty that was impeding innovation in the space.”
In a bid to differentiate itself from other crypto exchanges in the market, Revolut X is lowering attached fees set at 0% for the marker and 0.09% for the taker of crypto transactions, with more than 100 tokens to buy, sell and hold.
There is also a concerted effort for Revolut to lean in on its fintech roots by facilitating fiat-to-crypto transactions. Users are able to seamlessly migrate from the Revolut app to Revolut X whilst being able to trade with competitive fees.
Whilst the launch of a dedicated exchange platform reaffirms Revolut’s long-standing commitment to crypto, the London fintech had paused its operations within the field at the top of the year due to a changing regulatory climate.
The Financial Conduct Authority (FCA) introduced the crypto marketing and promotion regulation in September 2023 that aimed to stomp out potentially ‘risky’ advertisements of digital asset products.
Revolut subsequently told customers on 3 January that it would be blocking users from buying the cryptocurrencies on offer to give the company time to adjust to the new FCA rules.
Despite this, a definitive UK crypto legislation has been catching steam and could potentially be set to be signed off on this year. City Minister Bim Afolami revealed in February that a crypto bill should arrive within the next six months.
These regulatory talks may have bolstered Revolut’s position to launch the cryptocurrency exchange ahead of the impending bill, with Saleh praising Revolut X’s ‘compliance-first’ strategy.
He explained: “It’s really positive to see Revolut place a lot of emphasis on its “compliance-first” strategy. With robust compliance and security measures, it sets an example for a mature approach to crypto trading that aligns with institutional norms and should help to build trust in the market.
“Revolut’s millions of users can take a shot at using an advanced trading platform that backs funds 1:1, something that still haunts traders following the FTX fallout.”
With some of the largest exchanges in the sector currently struggling to find a foothold in the UK crypto market, Revolut’s decision to launch a dedicated crypto exchange enables fintech to gain a head start due to its existing large-scale user base.
If or when a crypto bill were to be signed off this year, Revolut X will be able to attract existing and new customers to the exchange securely as the UK continues its push to become a hub for digital assets and financial innovation.
