Revolut Product Restrictions
European Central Bank Restricts Revolut's New Product Rollouts Over Governance Concerns
Anonymous
Key Points
1
The ECB’s restrictions were not aimed specifically at crypto-related offerings: one report noted the measures “did not specifically target any cryptocurrency tokens or digital asset products,” focusing instead on product-approval governance.
2
Revolut backed its position with a direct statement to the Financial Times: “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,” adding: “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.”
3
The fintech’s rapid product pipeline was linked to a “VC-style” internal “new bets” strategy, where “Revoluters” experiment with product ideas using upfront investment from the business—an operating model that helps explain the speed of launches regulators scrutinized.
4
Revolut’s European banking oversight includes the ECB plus the Bank of Lithuania, which granted the firm its European banking licence in 2018—highlighting that the supervisory framework extends beyond ECB-only oversight.
The European Central Bank quietly told Revolut's European board in July 2025 that it had to stop launching new financial products across the 27-country European Economic Area, according to Financial Times. The ECB found that Revolut's blazing-fast product rollouts had outrun its own governance controls — a finding the regulator called "deficiencies" — forcing Europe's most valuable fintech to hit pause on expansion.
The restrictions came as Revolut was preparing a share sale that valued the company at $75 billion, Finance Feeds reported. The company serves 75 million customers globally and posted $4 billion in revenue in 2024 — up 72% year-on-year — making the ECB's intervention a high-stakes moment for one of Europe's most watched financial firms.
ECB Orders Audit and Freezes New Product Rollouts
The ECB told Revolut to commission an independent third-party review of the risk, compliance, and legal functions behind its product approvals, Sifted reported. That meant scrutinizing how approving staff are chosen, trained, and kept independent from the teams building products. Until those "deficiencies" were fixed, no new products could launch inside the EEA.
Future product launches would also need formal sign-off from in-house experts. The board was required to assess each launch's impact on capital and liquidity. On top of that, the ECB raised Revolut's Pillar 2 capital requirement — a bank-specific safety buffer — to 4.5%, the highest of any bank the ECB directly supervises, according to PYMNTS.
Outside Europe, Revolut Faced Even Broader Curbs
The restrictions did not stop at product launches. Revolut's European unit was also barred from taking on new customers and pursuing acquisitions in markets outside the EEA while the measures were in place, Finance Feeds reported. That meant the Lithuanian banking license — which Revolut has held since 2018 — could not be used as a springboard for new global growth during this period.
Importantly, the ECB's actions were not a crackdown on crypto. Crypto Briefing noted the measures "did not specifically target any cryptocurrency tokens or digital asset products." The focus was entirely on the process of approving and launching products — not what those products were.
The 'Self-Guided Missile' Culture That Caught Regulators' Attention
At the heart of the ECB's concern was Revolut's internal "New Bets" strategy. Under this model, employees — called "Revoluters" — pitch and build new products using upfront company investment, much like a startup inside a startup. CEO Nik Storonsky has described his staff as "self-guided missiles" who operate with high autonomy and minimal top-down oversight, according to Value The Markets.
Regulators saw that speed as a problem. Banking supervisors expect slow, deliberate checks before any new product reaches customers. Revolut's VC-style pace meant those checks were being skipped or rushed. A person close to the company told the Financial Times that product-launch processes have since been strengthened, though it remains unclear whether all restrictions have been fully lifted.
Revolut's Valuation Keeps Climbing Despite the Regulatory Heat
Investors appear largely unbothered. Revolut completed its $75 billion share sale in November 2025 — with the ECB restrictions still in place but undisclosed. By June 2026, the company was seeking a new secondary share sale at a $115 billion valuation, which would make it worth more than Barclays and Deutsche Bank combined, according to Sifted.
Revolut said in a statement to the Financial Times: "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. Revolut is committed to the highest standards of governance and risk management." The company also secured its full UK banking license in March 2026, a separate but significant milestone.
Sentiment
Mostly NegativeNEGATIVENEUTRALPOSITIVE
Publishers
14
Articles
5
Reach
19
A
AnonymousAuthor
