- Central Bank has already made its decision and announced it to the Finance Ministry
- The reason was inconsistencies with the 2021 audit
- But the rejection will not prevent Revolut from continuing its current services
The Telegraph reports that Britain plans to deny Revolut a banking license. Journalists do not name the source of information. But give an important argument for refusal.
The U.K. launched additional inspections of Revolut last year after inconsistencies in the financial report.
Fintech company reported $31.25 million in deferred revenue for 2021. But later BDO’s auditor expressed doubts about the documents.
He noted the inability to verify three quarters of the 2021 revenue due to IT system issues.
Revolut has already responded to The Telegraph article. They say they do not comment on current licensing applications. The Bank of England declined to comment on the matter.
The revocation of the banking license will not affect existing non-banking services. But it will not be able to launch new services in the country – mortgage and consumer loans and loans to local customers.
Revolut has been operating since 2015 and has grown into Britain’s most famous fintech firm..
And, during the bull market of 2021, about a third of Revolut’s revenue came from cryptocurrency transactions.
Now those numbers are down. But the company is preparing new crypto products in the UK and around the world. So, just yesterday they opened business accounts in Australia