Revolut stops providing services to Ukrainians after the NBU's refusal to grant a license.
We are well aware of Revolut's activities in Europe, but the British neo-bank, as it introduces itself, is not hindered from carrying them out. However, it seems that even in a country often mocked, there are certain rules. Discussions with the National Bank of Ukraine (NBU) reached a deadlock, leading the NBU to refuse a banking license for Revolut in Ukraine. Consequently, Revolut announced it will cease services to Ukrainians living in Ukraine, while continuing to serve those residing in the European Union. This is inconceivable, as the NBU identified risks that the European Union refuses to see, being "penny wise and pound foolish," as the proverb goes.
What will happen to Ukrainian accounts
The decision to stop providing banking services to Ukrainian residents who opened accounts through Revolut Bank UAB applies exclusively to operations within Ukraine and does not affect Ukrainians registered in countries of the European Economic Area, according to Revolut. The company, however, does not explain what led to this decision after months of negotiations with the NBU ended in failure. The National Bank of Ukraine openly expressed concerns regarding the lack of deposit guarantees, pointing out that Revolut users are not covered by the Deposit Guarantee Fund.
Furthermore, the NBU warned that in the event of Revolut's closure, Ukrainian depositors would have no right to compensation. At the same time, the bank's decision to halt services in Ukraine is also linked to the National Bank's policy against Revolut's operation due to the risks posed by easy access to banking services without the necessary license. Revolut, with its simplified account-opening process, allows Ukrainians to move money easily to and from Ukraine, which according to the NBU, increases capital outflows from the country.
Problems for Ukrainians
The bank had begun its operations in Ukraine in February 2025 using its Lithuanian branch license but failed to secure authorization from the Ukrainian Central Bank. In this context, Ukrainian banks began blocking money transfers to and from Revolut cards, further complicating the situation for the neo-bank. Following this decision, Revolut customers in Ukraine were informed of their account closures, with a 60-day deadline to withdraw their funds.
After this period, accounts will be closed, and all payments and transfers sent to closed accounts will automatically return to the senders. Revolut warns its users to withdraw all funds and download their statements before the deadline expires.
Who is Revolut
The irony is that Revolut was founded in 2015 in London by the Ukrainian Vlad Yatsenko and the Russian Nikolai Storonsky. It markets itself through the innovative financial services it offers, including currency exchange, card services, stock and cryptocurrency trading, and other payment services. Although the company has managed to obtain licenses for banking services in EU countries and the United Kingdom, the NBU's refusal to grant a license for operations in Ukraine causes market concern. This situation highlights the need for stricter regulations in the fintech and banking sector, especially in countries in a state of war or transition, such as Ukraine.
www.bankingnews.gr
Readers’ Comments