The National Bank of Ukraine (NBU), recently clarified the reason behind fintech giant Revolut’s recent decision to close accounts of its Ukrainian customers, as reported by the local media outlets.
The bank explained that any firm wishing to offer financial services in Ukraine must first obtain a local license, and adhere to Ukrainian law.
Revolut Notified Ukrainian Customers That Their Accounts Are Being Shut Down
The statement came shortly after Revolut, one of the most valuable startups in Europe, started sending notifications to Ukrainian users, telling them that their accounts – opened through its Lithuanian entity – would be closed within 60 days.
Revolut previously suspended new client registrations from Ukraine earlier this year, in April. The move came after the NBU reiterated that the firm was operating without a local license. However, while the initial news brought concern and confusion, the bank’s clarification suggests that this might not be a permanent exit for Revolut, but a temporary impasse. In other words, the company could return if it manages to obtain the license to operate throughout Ukraine.
The central bank insisted that its rules are the same for all market participants. It also noted that it had provided Revolut with “comprehensive clarifications” concerning the necessary authorization procedures in the past.
It noted that any company that intends to provide financial services to residents of Ukraine must undergo an authorization procedure in accordance with the requirements of Ukrainian legislation and comply with the requirements of legislation on consumer protection and advertising.
Revolut Planned To Get A License By The End Of 2025
It is also worth noting that Revolut announced its work on the Ukrainian financial services market at the start of this year, while the process of obtaining the license has been ongoing since February. At the time, the firm’s representative, Dmytro Strelchuk, said that the plan is to obtain a license by the end of 2025.
However, this seemingly did not happen, and the NBU explained that the reason is the fact that Revolut had not fulfilled the main condition for conducting business, which is establishing a branch of a foreign bank or obtaining a banking license.
Local reports have also added that Revolut notified the National Bank of its intention to stop providing services to Ukrainian citizens, but the bank also noted that it remains open to further regulatory dialogue with the company. It added that it welcomes any duly authorized form of this company’s presence in the Ukrainian financial market.
If Revolut decides to return, the future model of presence in Ukraine will be determined directly by the company itself, taking into account the regulatory requirements and the list of services planned to be provided to Ukrainian consumers.