The US Office of the Comptroller of the Currency (OCC) has denied a banking licence to Dutch digital bank bunq, blocking the fintech's entry into the American market.
The regulator issued the decision in a letter dated 4 August, according to a report by Reuters.
The rejection prevents bunq from operating as a national bank in the United States, a key step for its international growth strategy.
The decision aligns with a tightening regulatory environment for fintech entrants in the US.
Earlier this year, payments firm Wise was also denied a US banking licence, dealing a significant blow to its ambitions in the American market.
The OCC's stance suggests heightened scrutiny for non-traditional banking applicants seeking to establish a physical banking presence in the US.