Global: Ukraine’s Central Bank Declares Revolut Requires License for Operations

Ukraine’s central bank has clarified that Revolut, the London-based fintech giant, lacks the necessary licensing to operate in the country, despite its recent announcement allowing Ukrainian residents to open accounts.

In early February, Revolut issued a press release stating that Ukrainian residents could now seamlessly access a European Revolut account and benefit from its suite of financial services. However, the National Bank of Ukraine (NBU) swiftly responded, asserting that Revolut Bank UAB has not applied for or received any permits or licenses to conduct business within Ukraine.

Regulatory Requirements for Market Entry

The NBU emphasized that Revolut Bank UAB, which operates under a Lithuanian banking license within the European Union, must adhere to Ukraine’s financial regulations before entering the local market. Under Ukrainian law, foreign financial institutions seeking to provide banking services must either establish a local branch or obtain a banking license issued by the NBU. Both options require regulatory approval and a comprehensive assessment to ensure compliance with prudential standards.

While expressing support for fintech innovation and fair market competition, the central bank stressed the importance of compliance with national regulatory requirements. The NBU reiterated its commitment to safeguarding the stability of Ukraine’s banking sector, ensuring adherence to financial laws, and protecting consumer interests.

Revolut’s Position on Compliance

In response, a Revolut spokesperson affirmed the company’s commitment to regulatory compliance, stating that the firm had thoroughly evaluated its service structure before extending cross-border offerings to Ukrainian residents. Currently, Revolut provides services through its Lithuanian entity, which is supervised by the European Central Bank and the Bank of Lithuania. The fintech clarified that it only offers EU-based accounts and does not intend to launch Ukrainian accounts without obtaining proper authorization.

Revolut highlighted that it already serves hundreds of thousands of Ukrainian customers across the European Union, facilitating instant, fee-free payments among users to connect Ukrainian families worldwide. The company also confirmed prior discussions with Ukrainian regulators and expressed its intent to pursue a local banking license in due course. Revolut affirmed its willingness to collaborate with the NBU to introduce more innovative financial solutions to Ukraine’s market.

As Ukraine continues to strengthen its financial regulatory framework, the case underscores the growing importance of compliance management and regulatory oversight in fintech expansion strategies.