Is my Revolut crypto protected if Revolut fails?
No. Revolut's own terms say cryptocurrency isn't covered by the FSCS, and unlike a bank deposit or a safeguarded e-money balance, there is currently no dedicated statutory custody-protection regime standing behind it either.
No. Revolut's own cryptocurrency terms say that cryptocurrency held for customers is not covered by the Financial Services Compensation Scheme. That is true regardless of whether your everyday balance sits with Revolut Bank UK Ltd or the e-money entity, because crypto is not a deposit and the FSCS only compensates deposits. What is less well known is that, unlike an e-money balance, there is currently no separate statutory custody-protection scheme standing behind it either — so what happens to your crypto in an insolvency depends on Revolut's own custody arrangements, not on a ready-made legal backstop.
Why doesn't the FSCS cover crypto?
The FSCS exists to compensate customers of firms authorised to take deposits — banks, building societies and credit unions — up to £120,000 per eligible person, per authorised firm. A cryptoasset is not money placed with a bank; it is an asset whose value can rise or fall, held (or represented) on your behalf by a firm. That structural difference is why the Revolut FSCS article on this site already notes, in passing, that Crypto, Commodities and Stocks sit outside Revolut Bank UK Ltd's deposit protection — they are provided through different arrangements entirely.
This is not a Revolut-specific gap. No cryptoasset firm operating in the UK today offers FSCS-backed crypto holdings, because the scheme was built around deposit-taking, not custody of a volatile asset.
Which entity actually provides Revolut's crypto service?
Revolut has said its UK crypto service is run as a registered cryptoasset business under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. That registration is principally an anti-money-laundering control — the FCA checks the firm's systems for detecting suspicious activity — and it is not the same as being authorised to hold client cryptoassets under a dedicated custody-protection regime. In other words, being registered for AML purposes tells you the firm has passed a money-laundering check; it does not by itself tell you what happens to your coins if the firm goes under.
Is any custody protection coming?
Yes, eventually, but it will not be FSCS-style compensation. The FCA has confirmed that it does not plan to extend the FSCS to the new regulated cryptoasset activities it is bringing in. Instead, the finalised cryptoassets regime is expected to require firms that safeguard customer cryptoassets to segregate them from the firm's own assets — a custody duty with the same broad purpose as e-money safeguarding, aimed at ring-fencing customer assets in an insolvency rather than compensating for their loss.
| Bank deposit (Revolut Bank UK Ltd) | E-money balance (Revolut Ltd) | Crypto (Revolut, current rules) | Crypto (once the new FCA regime applies) | |
|---|---|---|---|---|
| Statutory scheme | FSCS deposit protection | Safeguarding duty | None yet | Custody segregation duty (not FSCS) |
| Cash compensation limit | £120,000 per person | No fixed limit | None | None |
| What you get back if the firm fails | Compensation up to the limit | A share of the ring-fenced pool, administration costs may reduce it | Depends on the firm's own custody arrangements and general insolvency law | A share of segregated cryptoassets, in principle, once rules apply |
Treat the timing loosely: the FCA has said firms will be brought into full authorisation for these activities from a date it has set out in its policy statements, and that kind of implementation date has moved before in this programme. Check the FCA's own pages for the current position before relying on it, and do not assume the regime is already in force just because it has been finalised on paper.
How is this different from what happens to a safeguarded e-money balance?
The safeguarding versus FSCS protection article explains that e-money firms must already keep customer money segregated today, under rules that have applied for years. Crypto is a step behind that: the segregation duty for cryptoassets is still being built into UK regulation rather than already in force, so today's protection — such as it is — comes from Revolut's own operational choices (for example, how it splits holdings between cold and hot storage, and whether it appoints another party to hold assets) and from its contract with you, not from a rule the FCA can currently enforce in the same way it enforces e-money safeguarding.
What should I actually check before keeping crypto with Revolut?
- Read the current cryptocurrency terms on Revolut's own site — custody practices and entity names can change, and the terms are the authoritative version for your account.
- Do not assume your crypto shares the protection of your bank balance. They are different products with different rules, even inside the same app.
- Remember price risk is separate from custody risk. Even with perfect custody protection, a cryptoasset's value can still fall to zero for ordinary market reasons — no protection scheme, current or future, changes that.
- Do not treat a large crypto holding like a large deposit. If you would want £120,000 of FSCS-style certainty, a protected deposit account is the product that offers it; crypto held through Revolut is not a substitute, however the balance is presented in the app.
In short
Revolut says plainly that your crypto is not FSCS protected, and — unlike your Revolut Bank deposit or an e-money balance held under safeguarding — there is no equivalent statutory scheme covering the custody of that crypto yet either. A dedicated cryptoasset custody regime is on its way through the FCA's cryptoassets policy programme, but even that will not be a compensation scheme with a cash limit. Until it is in force, what protects your Revolut crypto is Revolut's own custody practice and your contract with it, so check the current terms rather than assuming any protection you may be used to from banking automatically carries over.
This article explains how the protections work today. It is not financial advice, and Banking Explained does not recommend particular products. Cryptoassets are high-risk and you can lose the full value of your holding regardless of any custody protection.
Frequently asked questions
Is Revolut crypto covered by the FSCS?+
No. Revolut's own cryptocurrency terms state that cryptocurrency held for customers is not covered by the Financial Services Compensation Scheme. The FSCS protects deposits with authorised banks and building societies; a cryptoasset is not a deposit, so it was never in scope, whichever Revolut entity holds it.
Which Revolut entity actually holds my crypto?+
Revolut's crypto services in the UK are provided separately from the deposit-taking bank. Revolut has said it operates as a registered cryptoasset business under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, which is an anti-money-laundering registration, not the same thing as being authorised by the FCA to hold client assets under a custody-protection regime.
Will the FCA's new cryptoasset regime give me FSCS-style compensation?+
No. The FCA has been explicit that it does not plan to extend the FSCS to cover the new regulated cryptoasset activities. What is coming is a custody safeguarding duty — broadly, a requirement to segregate customer cryptoassets from a firm's own assets — not a compensation scheme with a cash limit like the £120,000 FSCS deposit limit.
What happens to my crypto today if Revolut became insolvent?+
That depends on Revolut's own custody arrangements and contract terms rather than on a ready-made statutory scheme, because the FCA's custody safeguarding rules for cryptoassets are not yet in force. Revolut's terms describe it as deciding how and where cryptoassets are held (including moving them between cold and hot storage) and say it may appoint another party to hold them. Read the current cryptocurrency terms yourself before treating a large crypto balance as equivalent to a protected deposit.
Is my Revolut current account balance protected the same way?+
No — and that is the point of this article. A Revolut Bank UK Ltd deposit can be FSCS protected up to £120,000 per person; crypto held through Revolut never falls into that category, however the deposit side of your account is protected.
Official sources
Every checkable claim in this article can be traced back to a source below. Rates, fees and exchange rates change — always confirm the current figures on the day you decide.
⚠️ This is general information, not financial advice. Specific figures (interest rates, APR, AER, fees, allowances) change often — check the current values on the provider’s own website, or with the FCA, Bank of England or MoneyHelper, on the day you decide.
Banking Explained is an independent editorial project. See our editorial and sourcing policy.
Related articles
What is safeguarding, and how is it different from FSCS protection?
Safeguarding means a payment or e-money firm must keep your money separate from its own. It is not compensation: if the firm fails you get a share of a ring-fenced pool, minus administration costs.
Is money held in Revolut FSCS protected in the UK?
It depends which Revolut entity holds your account. Balances with Revolut Bank UK Ltd are FSCS protected up to £120,000 per person; balances still with Revolut Ltd are e-money and only safeguarded.
Will my bank refund me if I was tricked into sending money?
Usually yes. Since October 2024 UK banks must reimburse victims of authorised push payment scams up to £85,000, within five business days — unless you were grossly negligent or in on the fraud.