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Revolut fails to stop financial losses despite the cryptocurrency boom

Revolut

TL;DR Breakdown

• Revolut paid almost double the taxes in cryptocurrencies by 2020.
• The UK company’s financial services accept 40 cryptocurrencies.

Fintech company Revolut is going through financial losses. These losses almost doubled in 2020 despite cryptocurrencies going through an incredible boom.

The former Lehman Brothers’ traders, Nik Storonsky and Martin Gilbert, founded this company. The former cryptocurrency trader admits that he made 39 million pounds. Storonsky’s profits are attributed to cryptocurrencies and the high demand for services throughout 2020. However, even with this, the financial company is in a difficult time.

Revolut obtained over 34% of revenues in commercial services valued at €222 million. The Bitcoin bubble continued to grow at the beginning of the year when it had a value of $28,500. BTC did not stop rising in value until its historical maximum of $64,000 for April 2021.

Revolut has huge tax losses

Revolut

Although Revolut’s outlook against cryptocurrencies looked beneficial, it had more losses than gains. Taxes took over this great scheme that the company was earning from cryptocurrencies.

On average, the financing company lost €207,875 in taxes. This figure showed a big loss, greater than 2019 when the company paid €107,680 in taxes.

Mikko Salovaara, head of finance, said that the company had a better perspective on taxes in 2021. However, he did not give figures on the tax payment in the first six months of the year. Salovaara only said that the company is recovering from that shares loss in 2019 and 2020 afterward.

The company has faith in cryptocurrencies

Revolut, the UK’s leading financial company, was launched in 2015 as a crypto-focused prepaid card. This company is very valuable to investors in the UK, for which it has achieved a net worth of $5.5 billion.

With this boom experienced, Revolut allows it to expand its operations in 34 countries. The company includes business firms, salary advances, investors, and other things in its financial services. However, unlike UK banks, the company leans towards virtual currency rather than fiat.

Revolut cryptocurrency services only show 15-20% of their actual income. But it allows buying and selling 40 tokens, including Bitcoin, Ether, and Dogecoin. However, the company’s success in this New Year may be affected by the latest measures the nation has taken. Regulators have tried to wipe out the crypto market by likening it to being more tolerant of scams and money laundering. As a result, many banks have refused to trade cryptocurrencies in the UK.

Carisbel Guaramato

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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