Bitcoin
$63,980.71-3.98%
Ethereum
$3,133.23-3.70%
Binance Coin
$607.48-0.35%
Solana
$146.26-7.43%
XRP
$0.52238826-5.08%
Dogecoin
$0.14981220-7.63%
Toncoin
$5.46-6.91%
Cardano
$0.47097865-6.67%
Shiba Inu
$0.00002493-8.19%
Avalanche
$35.36-10.06%
Tron
$0.11421087+0.51%
Wrapped Bitcoin
$64,073.01-4.06%
PlayIconNav
Crypto Prices CoinDesk 20 Index CoinDesk 20 Index
Countdown to Consensus 2024The largest and longest running event that covers all sides of Crypto and Web 3
34
DAYS
03
HR
38
MIN
48
SEC
Finance

Revolut Said to Be Under Pressure From Regulator Over Risk of 'Material Misstatement' in Auditing: Report

The auditor of Revolut, a digital bank that earns up to 10% of revenue from crypto trading, was criticized by the U.K. accountancy and auditing watchdog, the Financial Reporting Council (FRC).

By Jamie Crawley
AccessTimeIconSep 5, 2022 at 12:49 p.m. UTC
Updated May 11, 2023 at 6:51 p.m. UTC
(Shutterstock)
(Shutterstock)
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto-friendly digital bank Revolut is under pressure from U.K. regulators after an "unacceptably high" risk of "material misstatement" was highlighted in the auditing of its accounts, the Financial Times reported Monday.

  • An audit of an unidentified company by BDO was criticized by the Financial Reporting Council (FRC), the accountancy and auditing watchdog.
  • The "financial services provider" under audit was identified as Revolut by people familiar with the matter, the FT said.
  • The audit was conducted with an "inadequate" approach to revenue recognition, meaning the "the risk of an undetected material misstatement was unacceptably high." The FRC also had concerns over how BDO tested payment processes.
  • Crypto trading accounts for up to 10% of Revolut's annual revenue, which was 261 million British pounds ($300 million) in 2020.
  • Its application to be licensed by the Financial Conduct Authority (FCA) remains unresolved, with the firm able to offer crypto services through the FCA's Temporary Registration Regime.
  • Revolut had not responded to CoinDesk's request for comment at press time. BDO declined to comment.
VolumeMuteUnmute

How Saga's Chainlets Automate Layer 1s

  • Inside Saga's 'Power-Level Over 9000' Campaign
    00:43
    Inside Saga's 'Power-Level Over 9000' Campaign
  • Saga CEO on Chainlets Feature
    19:20
    Saga CEO on Chainlets Feature
  • DOJ Wants CZ to Serve 3 Years in Prison; Tether to Freeze Wallets Evading Venezuelan Sanctions
    02:26
    DOJ Wants CZ to Serve 3 Years in Prison; Tether to Freeze Wallets Evading Venezuelan Sanctions
  • What's Driving HBAR's Roller-Coaster Ride?
    01:12
    What's Driving HBAR's Roller-Coaster Ride?

    • Read more: Crypto.com Exchange Registers With UK Financial Regulator

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley
    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.

    Follow @JamieCrawleyCD on Twitter

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.