Nikita Veremeev
03.12.2025 | 6 min read
Updated: 03.12.2025
In 2025 the global financial services market is undergoing tectonic shifts: according to the BIS, in just the past year the volume of global cross-border payments exceeded $156 trillion, and the number of new fintech companies grew by 23%. But behind these impressive figures lies a harsh reality: more than 70% of international startups, according to Deloitte, face regulatory rejections at the licensing stage or suffer significant reputational damage due to compliance errors.
Why do some companies confidently scale in the EU, Asia and the Middle East while others are forced to wind down operations? How can you avoid the pitfalls and build a business that clients, partners and investors trust?
My experience at COREDO shows: a financial services license is not just a formality but a strategic asset that determines a business’s competitiveness, value and resilience. This article is not another overview but a practical guide in which I examine who truly needs a license, what the current requirements are, which pitfalls lie ahead and how the COREDO team helps clients build transparent, reliable and scalable financial structures in the EU, Czechia, Slovakia, Cyprus, Estonia, the UK, Singapore and Dubai.
If you’re looking for practical solutions and strategic ideas rather than theory, read to the end. Here you’ll find answers to the questions that define the future of your business.
What is a financial services license?
A financial services license is a permission issued by an authorized regulator (for example, the Central Bank or a financial services authority) that grants the right to conduct certain types of activities: from payment operations and microfinance to brokerage and investment services. In current conditions Licensing of financial organizations has become an integral element of regulating financial services, ensuring the protection of clients’ interests, transparency of operations and market stability.
A license is not only a legal obligation but also a key factor of trust from clients and partners. In COREDO’s practice there have been multiple cases where even minimal non-compliance with licensing requirements of a financial company led to account freezes, refusal of partnerships or inability to enter new markets.
Types of licensed financial organizations
- Microfinance organizations (MFOs, MFCs): Providing microloans and credit products requires a separate microfinance organization license. Regulators impose specific requirements on charter capital, transparency of ownership structure and internal control.
- Payment systems: Licensing of payment systems is a mandatory requirement for companies planning to carry out transfers, acquiring and electronic payments. Key attention is paid to the technological platform, scalability and security of operations.
- Brokers and securities dealers: To operate in the securities market a broker and dealer license is required, which includes requirements for staff qualifications, capital and risk management systems.
- Financial platforms and operators: Registering a financial platform requires a separate authorization, especially if it involves digital rights, crowdfunding or asset management.
Risks of operating without a license for businesses
Operating without a financial services license inevitably leads to legal and reputational risks:
- Legal sanctions: Violating regulatory requirements results in fines, revocation of a banking license, and in some countries, criminal liability.
- Reputational risks: Information about unlicensed activity spreads quickly among partners and clients, leading to loss of trust and refusal to cooperate.
- Restrictions on operations: Without a license it is impossible to legally open accounts, attract investments, work with major payment systems and enter international markets.
A real case from COREDO’s practice: an international fintech company that failed to obtain its EU license on time faced account freezes and loss of access to key markets. The solution developed by COREDO not only restored operations but also increased the business’s investment attractiveness.
Regulatory requirements and licensing authorities
In each jurisdiction the licensing of financial institutions is overseen by specialized authorities. The central bank and the licensing authority determine the regulatory requirements for financial services, including minimum capital, structural transparency, compliance procedures and standards for protecting the rights of financial services recipients.
In recent years self-regulatory organizations in the financial market have taken on a special role: they develop additional standards and monitor adherence to industry practices. For international companies, cross-border requirements for financial licensing, harmonization of standards and recognition of licenses in other countries are important.
Regulatory authorities in jurisdictions
| Region | Key regulator | licensing features |
|---|---|---|
| EU | European Central Bank, national regulators | Strict requirements for capital, compliance, data protection, harmonization of standards (MiFID II, PSD2) |
| Czech Republic, Slovakia | National banks, financial services authorities | Structural transparency, mandatory audit, requirements for statutory capital |
| Cyprus, Estonia | CySEC, FIU | Attractive for fintech, fast procedures, but enhanced AML controls |
| United Kingdom | FCA (Financial Conduct Authority) | High standards for transparency, reporting, and investor protection |
| Singapore | ACRA, MAS (Monetary Authority of Singapore) | Minimum capital from 1 SGD, fast registration timelines, strict AML/KYC controls |
| Dubai | DFSA, Dubai FSA, Central Bank UAE | Flexible regime for startups, but emphasis on cybersecurity and investor protection |
At COREDO we regularly monitor updates to regulatory acts, including new EU requirements for financial licensing, as well as the specifics of licensing in Asia and Africa.
How to apply and processing times
- Preparation and submission of documents: founding documents, proof of capital, internal regulations, business plan, compliance policies.
- Application review: The regulator conducts a comprehensive check, including Due Diligence of beneficiaries and analysis of financial stability. In Singapore, for example, the standard application review time ranges from 15 minutes to 60 days depending on complexity and the need for additional licenses.
- License renewal and extension: In some countries the license requires annual confirmation of compliance with standards, regular reporting and undergoing an audit.
Financial and operational requirements for a license
COREDO’s expertise shows: successful licensing of financial organizations is impossible without comprehensive preparation across four key areas – capital, technological infrastructure, compliance and internal control.
Capital requirements in finance
| Type of organization | Minimum capital (example) | Specific requirements |
|---|---|---|
| MFO (EU, Asia) | from 50,000 to 350,000 EUR | Transparency of structure, verification of sources |
| Payment systems | from 125,000 to 350,000 EUR | Reserve requirements, liability insurance |
| Brokers/dealers | from 730,000 EUR (EU) | Capital adequacy ratio, mandatory audit |
| Financial platforms | from 50,000 EUR | financial stability, reporting, AML/KYC |
The minimum capital for a financial license depends on the jurisdiction and type of activity. Requirements for the charter capital of MFOs and the capital adequacy ratio are set by the regulator and are subject to annual confirmation.
Technological infrastructure and security
In recent years, requirements for the technological platform for a payment license and other financial services have tightened significantly. Regulators require:
- Scalability and reliability of the platform: The system must ensure uninterrupted processing of transactions as load increases.
- Data protection and information security: Implementation of ISO 27001 standards, regular audits, protection against cyber threats.
- Contracts with technology partners: All service providers must comply with security and compliance standards.
In one of COREDO’s projects for a fintech company in Singapore, we implemented integration with leading KYC providers and payment gateways, which allowed us to obtain licensing approval on the first attempt and ensure platform scalability.
Compliance and risk management
- anti-money laundering legislation (AML): Implementation of procedures to detect suspicious transactions, regular staff training, automation of monitoring.
- Customer identification (KYC): Use of digital platforms for verification, data storage in accordance with GDPR and local standards.
- Internal policies and audit: Development of compliance programs, regular internal and external audits, implementation of risk management systems.
COREDO’s practice confirms: companies that invest in compliance and automation of AML/KYC not only obtain licenses faster, but also significantly reduce operational and reputational risks.
How do I obtain a financial services license?
Company registration and obtaining a license for financial services is a step-by-step process that requires a systematic approach and a deep understanding of regulatory requirements.
What documents are required for the application?
| Document | Description and requirements |
|---|---|
| Incorporation documents | Company charter, meeting minutes |
| Financial statements and proof of capital | Bank statements, audited financial statements |
| Internal regulations and policies | AML/KYC, risk management, data protection |
| Business plan | Description of the model, target markets, financial projections |
| Personal data of beneficial owners | Passport details, address verification |
| Agreements with technology partners | Proof of compliance with standards |
Interaction with the regulator and review timelines
- Application review stages: preliminary check, due diligence, requests for revisions, final approval.
- Possible requests: Regulators may request additional information about ownership structure, sources of capital, and staff qualifications.
- Receiving the authorization document: After approval, a license is issued that confirms the right to operate.
Review timelines depend on the jurisdiction: in Singapore: from 15 minutes to 60 days, in the EU – from 1 to 6 months, in Dubai, from 2 to 4 months.
AML/KYC control: how to organize?
- Implementation of AML and KYC procedures: development and implementation of standard operating procedures, automation of client identification.
- Staff training and audit: regular training, internal checks, preparation for external audit.
- Monitoring and reporting: continuous monitoring of operations, timely submission of reports to regulatory authorities.
In one of COREDO’s cases for a digital asset platform in Estonia, implementing an automated monitoring system not only enabled compliance with licensing requirements but also increased trust from banks and investors.
Licensing in Europe, Asia and Africa
Features of licensing in different regions — Europe, Asia, Africa: they take into account both national legislation and industry-specific requirements, which directly affect business conditions. To successfully enter a new market you should understand the basic differences and the key steps for obtaining licenses specific to the target region. Below we will look at how licensing in Europe, Asia and Africa differ.
Licensing in Europe
The EU operates under the principle of harmonizing standards: requirements for capital, compliance and data protection are standardized (MiFID II, PSD2, GDPR). A license obtained in one EU country is often recognized in others (passporting). At the same time, national regulators may introduce additional requirements, especially regarding AML and the protection of consumers of financial services.
Licensing in Asia
In Asia, for example in Singapore, licensing is characterized by high speed (1 to 3 days for company registration, up to 60 days for a financial license), minimal share capital (from 1 SGD) and an emphasis on technological infrastructure and cybersecurity. Regulators (ACRA, MAS) impose strict requirements on corporate structure transparency, customer identification and compliance.
Licensing in Africa
In Africa, licensing requirements for financial companies vary from country to country, but overall there is a tightening of controls, the adoption of international AML/KYC standards and an emphasis on investor protection. Special attention is paid to the resilience of financial platforms and the transparency of operations.
Licensing: impact on business
The impact of licensing on business and competitiveness is manifested not only in reducing administrative barriers but also in creating conditions for rapid market entry and fostering innovation.
Competently structured licensed processes can strengthen a company’s position, increase its attractiveness to investors, and ensure sustainable growth in a competitive environment.
Competitive advantages of licensing
- Access to international markets: A licensed company can legally operate in different countries, open accounts, attract investment, and enter into partnerships with major players.
- Increased trust from clients and partners: A license confirms transparency, financial stability, and compliance with international standards.
- Investment attractiveness: Companies with a financial license are valued higher and are easier to sell or to attract a strategic investor.
Risks and sanctions: what they are and how to avoid them
Operating without a license or violating the terms of a license leads to:
- Freezing of accounts and assets
- License revocation and a ban on operating
- Substantial fines and legal claims
- Loss of business reputation and market trust
The COREDO team has carried out projects to restore licenses and minimize the consequences for companies that faced regulatory sanctions. In each case, the key success factor was transparency of processes and readiness to promptly implement new standards.
Trends in consolidation and regulation
In 2025, the financial market is experiencing consolidation: stricter regulation, removal of unscrupulous players, and increased requirements for capital and cybersecurity. For companies, this means the need for constant monitoring of changes and adaptation of internal processes.
Key findings and recommendations for entrepreneurs
- financial services license – a strategic tool that determines the legality, sustainability and investment attractiveness of a business.
- To successfully obtain a license it is important:
- Prepare a complete set of documents, including founding documents, financial statements, internal AML policies/KYC.
- Ensure sufficient capital and transparency of funding sources.
- Implement a technology platform that meets security and scalability requirements.
- Establish internal controls, regular audits and staff training.
- When choosing a jurisdiction, consider not only the cost and timing of obtaining a license, but also compliance requirements, opportunities for cross-border activity and recognition of the license in other countries.
- Minimize risks by automating compliance, regularly monitoring changes in legislation and working with professional advisors.
COREDO’s experience confirms: a comprehensive approach to licensing is not only about meeting requirements, but also a guarantee of long-term success in the international market. If you plan to scale up, enter new markets or introduce innovative financial products, COREDO’s strategic support and expertise will help you complete the licensing process as efficiently and transparently as possible.