The European Central Bank temporarily restricted Revolut's European banking arm in July 2025 over concerns about product approval speed. The restrictions were communicated to Revolut's European board as the company prepared a share sale valuing it at $75 billion. The regulator withdrew permission for Revolut's European division to launch new products across the European Economic Area until it addressed deficiencies in approval processes.
ECB Ordered Third-Party Review of Revolut's Product Approval Systems
The ECB ordered Revolut to commission a third-party review of the risk, compliance and legal functions involved in new product launches. Regulators asked for an assessment of staffing levels, skills and the independence of teams responsible for approving new initiatives.
The regulator required future products to receive sign-off from in-house experts and urged Revolut's European board to consider how new launches could affect group capital and liquidity. Revolut's European business was barred from taking on new customers or pursuing corporate acquisitions outside Europe while supervisory measures were in force.
The measures challenged the operating culture associated with co-founder and chief executive Nik Storonsky. In a December 2024 podcast appearance, he said staff should behave like a "self-guided missile" and added: "They press the button and they reach the goals themselves."
Revolut Strengthened Internal Review Process Following Regulatory Action
A person close to the company said Revolut had strengthened its product-launch process, including enhanced internal review of new initiatives. It remains unclear whether all restrictions have been lifted.
"We are in continuous and constructive dialogue with our regulators, including the European Central Bank, as part of our normal course of operations as a fully licensed bank," the company said.
A spokesperson added: "Revolut is committed to the highest standards of governance and risk management. In line with supervisory expectations, we regularly strengthen our internal control environment and operational processes."
Revolut's European operations are supervised by the ECB and the Bank of Lithuania, which granted the firm a European banking licence in 2018. The company received a full UK banking licence in March after years of discussions with British regulators. Italian authorities fined the company €11.5 million in April over information provided to investment customers.
Revolut Reports 57% Profit Growth Amid $115 Billion Valuation Round
Revolut serves 75 million customers. Last year, pre-tax profit rose 57% to £1.7 billion on revenue of £4.5 billion.
The company is running another share sale valuing it at $115 billion, up from $75 billion in 2025. Revolut has secured a banking licence in Mexico and applied for a US banking charter.
FAQ
What did the ECB restrict at Revolut in July 2025?
The European Central Bank temporarily restricted Revolut's European banking arm in July 2025, withdrawing permission to launch new products across the European Economic Area and barring the division from taking on new customers or pursuing acquisitions outside Europe.
Why did the ECB impose restrictions on Revolut?
The ECB raised concerns about how quickly Revolut approved and launched new financial products across the region. The regulator ordered the company to commission a third-party review of risk, compliance and legal functions involved in product launches and to assess staffing levels and team independence.
What is Revolut's current valuation?
Revolut is running a share sale valuing the company at $115 billion, up from $75 billion in 2025. Last year, the company reported pre-tax profit of £1.7 billion on revenue of £4.5 billion.
