The British fintech giant Revolut, one of Europe’s most successful digital banks with millions of users and a valuation recently reaching around $115 billion, has had its expansion in Europe temporarily halted by the European Central Bank (ECB). The decision raises questions about whether the EU’s regulatory apparatus protects consumers or rather favors slow-moving, established European banks.

According to several reports, the measures were implemented as early as July 2025. The ECB informed Revolut’s European board (via the Lithuanian subsidiary Revolut Bank UAB, which is under the ECB’s direct supervision) about temporary restrictions. The company was prohibited from launching new financial products within the European Economic Area (EEA) until deficiencies in the approval processes for new products had been addressed.

The ECB pointed out shortcomings in risk management, compliance, legal, and internal controls. Revolut’s rapid product development – with new features rolled out at a high pace – was believed to have outpaced the company’s internal governance.

The company was forced, among other things, to undergo an independent third-party review of its functions, strengthen staffing and competence in the approval processes, and ensure that new products receive approval from internal experts and board evaluation of their impact on capital and liquidity.

The restrictions went further. Outside the EEA, Revolut was temporarily prohibited from accepting new customers or carrying out acquisitions. It is unclear exactly how long the restrictions lasted, but Revolut has nevertheless launched several new products in the past year, such as teen accounts, mortgages, savings accounts, and hardware for payments.

Revolut itself comments that it is in “continuous and constructive dialogue” with regulators, regularly strengthens internal controls, and is committed to the highest standards for governance and risk management.

“The EU Is Corrupt”

Officially, it is about consumer protection and financial stability. The European Central Bank is concerned that Revolut’s culture, where employees are encouraged to drive innovation very quickly, may create risks. Rapid growth can mean new products are not scrutinized thoroughly enough, that there are deficiencies in anti-money laundering efforts, or other problems with regulation and control. Similar issues have previously come up in connection with the company’s application for a full banking license in the UK.

Critics, including many on social media and in fintech circles, see it differently. Revolut challenges the traditional big banks with lower fees, better apps, and innovative services. To slow down a company specifically because it “is growing too fast” smells of protectionism.

Why is it a problem if a new company that changes the market offers better terms to European consumers?

The EU’s heavy regulations often benefit established players who have the resources to handle the bureaucracy, while innovators are punished. This reinforces the image of an EU that struggles to produce its own tech champions compared to the USA.

Many users on X and Reddit have reacted strongly. “The EU is corrupt and protects old banks” is a recurring comment that echoes. There are also speculations that reports from dissatisfied customers may have played a role, but the ECB’s actions seem mainly driven by internal supervisory assessments.

Broader Context and Criticism

Revolut has grown rapidly and offers a broad range of services, including payments, currency exchange, investments, crypto, and insurance. The company has a banking license in Lithuania and serves millions of customers in Europe through its European subsidiary Revolut Bank UAB, which is supervised by the ECB and Bank of Lithuania.

At the same time, Revolut has previously received attention for compliance challenges, including anti-money laundering controls, which regulators have highlighted as an area requiring robust internal processes.

According to the British business newspaper Financial Times, Revolut’s rapid product development was internally described at the European Central Bank as “self-driving robots,” a description that shows regulators’ concern that the pace of innovation has outstripped the company’s own systems for control and follow-up.

Many commentators and representatives in the fintech world have criticized the decision, arguing that it risks hampering European innovation and competitiveness against actors outside the EU. Some see it as an example of how extensive regulations benefit established banks that have greater resources to handle bureaucracy, while fast-growing disruptors are punished.

Others emphasize that regulatory interventions are necessary to protect consumers and maintain financial stability, especially considering Revolut’s previous issues with compliance.

Revolut has stated that they are in “continuous and constructive dialogue” with regulators, regularly strengthening their internal controls and are committed to the highest standards of governance and risk management. The company has reportedly taken measures such as independent reviews and enhanced internal approval processes.

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