Timur Turlov's Freedom Holdings has applied for a French banking license as the Kazakhstan-based fintech group seeks entry into Europe's digital banking market. The move comes while the Nasdaq-listed company faces investigation from the US Securities and Exchange Commission over accounting practices related to internalized trades. Approval would make Freedom the first formerly Russian business to enter European banking since Russia's 2022 invasion of Ukraine.

Turlov founded Freedom in Moscow in 2011 before renouncing his Russian passport and relocating to Kazakhstan. The group now operates brokerages, banks, telecoms, food delivery and travel businesses across multiple countries including Turkey, Cyprus and the UAE. Freedom doubled its banking customers to 5.2mn by March 2026 and generated $153mn in net income, though revenues only rose 9% to $2.2bn.

The company disclosed receiving a Wells Notice from the SEC, with staff making a preliminary determination to recommend civil enforcement action. Turlov characterized the notice as routine, noting the SEC issues hundreds annually. Meanwhile, Freedom earned $367mn through a single market maker - 17% of total revenue - and holds $4.6bn in margin lending receivables, representing 35% of total assets.

Freedom faces questions about its Belize affiliate structure and previously drew criticism from short seller Hindenburg Research over alleged opaque practices. The annual report shows $188mn in customer liabilities tied to sanctioned entities, which Turlov says reflects frozen funds. Despite regulatory headwinds, the company aims to reach 50mn European customers within three years of license approval.