Revolut secures financial service license for Australia operations

Fintech startup Revolut has been given the green light by regulators in Australia, following confirmation the firm had been granted an Australian Financial Service License.

Originally disclosed by the Fintech Australia Chairman Alan Tsen, the news was shortly confirmed by Revolut’s global expansion manager.

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Revolut began operating in Australia in 2019 under a special exemption granted by the Australian financial regulator ASIC. The exemption had been due to expire on June 1, which would have prevented the bank from continuing to trade in the country.

According to a memo from Revolut, the Australian business will now be conducted through Revolut Payments Australia Pty Ltd., the firm which holds the license on behalf of Revolut in Australia.

The AFS License is a mandatory requirement for companies carrying out financial services business in Australia. The move to Australia was Revolut’s first expansion beyond Europe, with the firm launching their beta product in Australia last June.

Separate pilot programs in Melbourne, Perth and Sydney saw the firm offer basic services on its platform, including extending access to trading across a basket of digital currencies. The confirmation of a permanent base in Australia will allow Revolut to capitalize on its early work in the country.

Valued at £4.2 billion (US$5.14 billion), Revolut has been ranked as the U.K.’s most valuable startup in 2020. The valuation comes after the firm secured US$500 million in funding from Technology Crossover Ventures, which has previously backed companies including Spotify and LinkedIn. With 10 million customers worldwide, the platform is now more than twice as valuable as rival Monzo, which is valued at around £2 billion (US$2.45 billion).