UK-based fintech Revolut did not have a blissful 2020 as their losses nearly doubled. The losses negate the fact that the firm grew in revenue in the last quarter of 2020. The company cashed out over £39 million in the last two months of the past year.
The increase in its revenue in the previous year surfaced as a result of the growth in demand for cryptocurrency activities by users. It generated a 57 percent revenue increase amounting to £226 million. Out of the £226 million, £44 million was generated from forex, crypto, and stock trading activities.
According to Revolut’s annual reports, within the 12 months as well it lost a total of £168 million. Factors that contributed to the pretax loss last year were triggered by investments in engineers and share-based payouts for its employees. Revolut’s Financial Head Mikko Salovaara said that the firm experienced profits but couldn’t determine if it was heading for a pretext profit on record.
Revolut Has Eyes on Incoming Regulatory Actions
Revolut Has expanded massively to over 34 countries after it was launched in 2015. After its establishment, the firm announced that it’d help users access crypto trading services for free. It also offers banking-related services but has leaned to cryptocurrencies, unlike other British financial institutions.
Within the first days of June, global regulatory officials from the influential Basel Committee mentioned that the strictest capital rules would apply to Bitcoin. The reason for this is to prevent their volatility from affecting other monetary commodities. If the proposal is approved, British lending firms like Revolut will be compelled to put aside sufficient capital to make up 100 percent of profits.
The Bank of England and the Financial Conduct Authority warned the public of losing their funds if they continue investing in crypto assets. This statement follows after China suspended financial institutions from conducting crypto-related services.