Kazakh Fintech Billionaire Timur Turlov Seeks Entry into European Digital Banking Amid US Regulatory Scrutiny

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Kazakh billionaire Timur Turlov is advancing plans to expand his fintech empire into Europe, submitting an application for a banking licence in France despite ongoing regulatory pressure from U.S. authorities.

Turlov, founder and chief executive of Freedom Holding Corp., aims to establish a large-scale digital bank across the European Union. If approved, the venture would represent the first significant entry by a company with Russian origins into the European banking sector since Russia’s full-scale invasion of Ukraine in February 2022.

Freedom Holding, which began as a small brokerage firm in Moscow over a decade ago, has evolved into a diversified fintech group headquartered in Kazakhstan. The company now offers banking, investment, telecommunications, travel, and food delivery services. Its parent entity is incorporated in Nevada and listed on the Nasdaq stock exchange.

In an interview, Turlov cited the company’s strong performance in Kazakhstan — where it serves nearly half the population across its various services — as evidence that its model can succeed in more mature European markets.

“We have proven that our technology and customer-centric approach work,” Turlov said, drawing a parallel between his ambitions in Central Asia’s tech landscape and Elon Musk’s role in the United States, albeit on a smaller scale.

Following the outbreak of the Ukraine war, Turlov divested his Russian businesses, renounced his Russian citizenship, and became a citizen of Kazakhstan. Freedom Holding currently operates in Kazakhstan, Turkey, Cyprus, Tajikistan, and the United Arab Emirates. The company maintains a highly visible presence in Kazakhstan, with prominent branding in airports and public spaces, including the provision of Wi-Fi services at major terminals.

European Ambitions

Freedom Holding has formally submitted documents to France’s banking regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), seeking approval for a full banking licence. The proposed digital bank would offer consumer loans, investment products, and lifestyle-oriented financial services across Europe.

The company has set an ambitious target of acquiring up to 50 million customers within three years of approval. Turlov noted that France was selected after exploring several EU jurisdictions, describing it as relatively more open to the proposal. The ACPR declined to comment on the pending application.

Freedom remains smaller than leading European fintech players. For context, Revolut serves over 70 million customers, Trade Republic approximately 10 million, and France’s BoursoBank more than 8 million. However, Freedom’s banking business has grown rapidly, with its customer base doubling to 5.2 million by March 2026. Net profit more than doubled to $153 million, while annual revenue increased to $2.2 billion.

Regulatory and Governance Challenges

The expansion push comes as the company faces heightened scrutiny in the United States. In its latest annual report, Freedom Holding disclosed that both the company and Turlov had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). The notice stems from an investigation into the company’s accounting practices and internal trading activities.

According to the disclosure, SEC staff are considering recommending a civil enforcement action for alleged violations of U.S. securities laws. Turlov described the notice as a standard procedural step and emphasized that it does not constitute a formal finding of wrongdoing. He stated that the company intends to vigorously contest the allegations and does not anticipate the matter derailing its European plans.

Freedom gained access to U.S. capital markets through an unconventional path, acquiring a former Kazakh oil company that had been trading as a shell entity on over-the-counter markets before transforming it into Freedom Holding and listing on Nasdaq in 2019.

The company has previously faced criticism over its corporate structure, including the use of a Belize-based affiliate for part of its brokerage operations — an entity that has since been closed, with customers migrated to other parts of the group. Financial disclosures also highlight significant concentration risks, including heavy reliance on a single market maker and $4.6 billion in margin lending receivables, much of which is linked to just three customers.

In 2023, short-seller Hindenburg Research accused Freedom of employing opaque structures that allegedly facilitated the movement of funds from Russia. Turlov has consistently rejected such claims. The company’s latest report also revealed that approximately $188 million linked to sanctioned individuals or entities remains frozen, with Freedom cooperating with relevant U.S. authorities.

Despite these challenges, Turlov remains focused on international growth, positioning Freedom Holding as a potential disruptor in Europe’s competitive digital banking market.