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Editor's note: The article was updated with Revolut's statement.
London-based digital bank Revolut has not obtained the required license to conduct banking activities in Ukraine, the National Bank of Ukraine (NBU) said in a press release on Feb. 27.
According to Ukrainian banking law, a foreign bank can only operate in Ukraine if it opens a local branch or obtains a banking license. This process must first be approved by the NBU, the bank said in the press release.
Revolut denied any wrongdoing, clarifying that it is merely offering EU accounts to Ukrainian residents on a cross-border basis and that it does not plan to open Ukrainian accounts without further authorization.
"We have previously notified the Ukrainian regulator about our plans in Ukraine, and we will seek a local license in due course and will work closely with the NBU to bring even more innovative financial services to Ukrainians," the banking company said in a statement for the Kyiv Independent on Feb. 28.
Revolut on Feb. 11 began offering Ukrainian residents access to features like instant, free transfers between app users by setting up a European Revolut account.
Revolut said its services for Ukrainian residents were provided by Revolut Bank UAB, a Lithuania-based bank supervised by the European Central Bank and the Bank of Lithuania.
The NBU argues that while this license allows Revolut to operate in EU countries, the fintech company has not applied for a license to operate in Ukraine as required by law.
"We support open competition and financial technology development, but all market players must follow legal and regulatory requirements," the NBU wrote.
The Ukrainian regulator also warned that Revolut customers in Ukraine will not be protected by local laws on financial consumer rights or deposit guarantees.
Revolut is a British multinational neobank and fintech company, co-founded by Ukrainian tech entrepreneur Vlad Yatsenko and Russian-born Nikolai Storonsky, who renounced his Russian citizenship after Russia’s full-scale invasion of Ukraine. The company has also stopped all operations in Russia and Belarus.
The Kyiv Independent
