How to obtain a financial license in the EU

Nikita Veremeev

29.11.2025 | 6 min read

Updated: 29.11.2025

95% of European B2B and B2C customers choose licensed services rather than unlicensed ones. This statistic reflects not only the level of trust in regulated companies but also the market’s growing demands for transparency, sustainability, and the protection of clients’ interests. In 2025, obtaining an EU financial license is not just a question of legality but a strategic necessity for any business that seeks to expand beyond national markets and compete internationally.

Why is this so important? Firstly, an EU financial license provides official recognition by European regulators, which is critical for building trust and reputation. Secondly, Licensing opens access to the single European market (passporting), allowing services to be offered in most EU countries without the need for re-licensing. Thirdly, compliance with EU financial services regulatory standards — from MiCA to FATF and AML/CFT — becomes a mandatory condition for attracting investors and partners, as well as for protecting the business from sanctions and reputational risks.

The practice of COREDO confirms: companies that have timely completed the licensing procedure in Europe gain not only competitive advantages but also access to the best financial instruments, payment systems, and banking services. In an environment of tightening controls over financial flows and digital assets, only licensed businesses can count on long-term development and scaling.

If you want to understand how to go through this process without mistakes, gain a deep understanding of all the nuances, and avoid common pitfalls, I recommend reading the article to the end. Here I share not theory but practice, tested on dozens of COREDO cases in the EU, Asia, and the CIS.

EU Financial Licenses in 2025

Illustration for the section «EU Financial Licenses in 2025» in the article «How to obtain a financial license in the EU»
In 2025 the European financial market becomes even more segmented and technology-driven. For a successful registration of an EU financial company it is important to choose the correct type of license that matches the business model and scaling plans.

EU Electronic Money and Payment Services License

The EU electronic money license (EMI) and the payment institution license (PI) are the foundation for fintech companies, marketplaces, international platforms and startups working with payments, e-wallets, cards and transfers. In 2025 the most popular jurisdiction for such licenses remains Lithuania: here the minimum capital for an EMI starts from €350 000, and for a PI from €125 000. The Lithuanian electronic money license allows you to operate across Europe thanks to passporting, and to integrate with SEPA and major banks.

A project implemented by the COREDO team to launch a fintech company in Vilnius showed that thorough preparation of the business plan, implementation of modern KYC systems and the construction of a transparent governance structure make it possible to obtain a license in 6–9 months, and to enter the market: within 12 months from launch.

EU Forex Broker License

A license for an EU forex broker (Investment Firm License) is a mandatory requirement for companies providing services in currency trading, derivatives and securities. In Germany the minimum capital for such a license reaches $20 million, and the requirements for reporting transparency and internal control are extremely strict. The COREDO team implemented a licensing project for a brokerage platform in the Czech Republic: the key success factor was the integration of automated internal audit systems and preparation for multi-level BaFin inspections.

Crypto Licensing: MiCA and CASP

In 2025 new rules MiCA (Markets in Crypto-Assets Regulation) and CASP (Crypto-Asset Service Provider) come into force. The MiCA EU license and the CASP EU license become the standard for crypto exchanges, stablecoin issuers, crypto wallets, crypto brokers and other participants in the digital assets market. These licenses cover a wide range of services: from crypto trading and custody to staking, lending, derivatives and even crypto insurance.

A real COREDO case: launching a crypto platform in Estonia with a subsequent transition under MiCA. The COREDO team developed a comprehensive AML/CFT implementation solution, prepared documentation for the regulator and ensured compliance with the new security standards. This allowed the client not only to preserve the business but also to scale operations across Europe.

Key requirements for an EU financial license

Illustration for the section «Key requirements for an EU financial license» in the article «How to obtain a financial license in the EU»
Success in licensing depends on thorough preparation and a deep understanding of regulator requirements. Over the past years the COREDO team has developed a unique set of best practices that help minimize risks and accelerate the process of obtaining a license.

Minimum capital and stability

Different types of licenses have their own capital requirements for an EU license.

For example, the minimum capital for a MiCA license is from €125 000 to €350 000 depending on the type of services. It is important not only to contribute capital but also to confirm its legal origin, sustainability and sufficiency to cover operational and risk-related expenses. The solution developed by COREDO includes financial modelling and the preparation of documents that demonstrate to the regulator the sustainability and transparency of the capital structure.

Corporate structure and director requirements

EU regulators require that the board of directors include at least one EU resident with proven qualifications and experience in financial services. For an EU CASP license special requirements are imposed on directors:

the presence of relevant education, an impeccable business reputation and experience managing similar projects. Having a physical office for an EU license and a local team is a mandatory condition for most jurisdictions.

KYC and AML/CFT policies

Compliance with AML/CFT policies for EU financial licenses and the implementation of effective KYC requirements for an EU license are key factors for successful licensing. Regulators require not only the existence of formal procedures but also the real functioning of client identification systems, transaction monitoring and employee training.

COREDO’s experience shows: implementing automated KYC/AML solutions reduces client verification time and lowers the risk of fines.

Security standards and data protection

In 2025 special attention is paid to security standards for an EU license: protection of client data, cyber security, regular external audits, compliance with GDPR and ISO 27001 requirements. For fintech and crypto companies this means the need to implement modern encryption technologies, multi-factor authentication and anomaly detection systems.

Financial reporting and audit

Reporting for EU financial licenses includes regular reports to the regulator, a mandatory external audit, disclosure of information about risks and compliance with ESG criteria.

COREDO’s practice confirms: transparency and timeliness of reporting are the foundation of trust from regulators and partners.

Step-by-step procedure for obtaining an EU license

Illustration for the section 'Step-by-step procedure for obtaining an EU license' in the article 'How to obtain a financial license in the EU'
The licensing process in the EU is strictly formalized, but with proper preparation it becomes manageable and predictable.

Preparation of documents and business plan

First stage: registration of an EU financial company and preparation of a complete set of documents: incorporation documents, a business plan with financial calculations, KYC questionnaires, proof of source of funds.

At COREDO we develop tailored business plans that take into account the specifics of the chosen jurisdiction and the regulator’s requirements.

Interaction with the regulator and review

The next step is submitting the application and interacting with the regulator. This usually includes a preliminary review, interviews with key persons, and sometimes taking exams in compliance and risk management.

COREDO’s experience shows: openness and willingness to engage in dialogue with the regulator accelerate the application review process.

License issuance and start of operations

After successfully passing the review, the company receives the license and can begin operations.

It is important to comply with all the conditions of the electronic money license or other chosen license, regularly update documentation, and maintain compliance with standards.

License for crypto companies under MiCA and CASP

$Illustration for the section \$
In 2025 licensing of crypto companies becomes a separate direction with unique requirements and challenges.

Capital and director requirements for CASPs

For MiCA and CASP the minimum capital depends on the type of services: for crypto exchanges: from €125 000, for custodial services, from €150 000, for stablecoin issuers, from €350 000. The director must be an EU resident, have experience in digital assets and an impeccable business reputation.

At COREDO we assist with the selection and training of directors, as well as building a qualified team.

Physical office and staff

The presence of a physical office for the EU license and a local staff is a mandatory requirement in most countries. This confirms the company’s real presence and ensures effective interaction with the regulator.

AML/CFT and KYC for crypto companies

Implementing strict AML/CFT policies for EU financial licenses and KYC procedures is a key element of licensing crypto companies. Regulators require integration with international databases, automated transaction monitoring and regular staff training.

The solutions implemented by COREDO enable clients to comply not only with European but also with global FATF standards.

Reporting and audit for crypto companies

Reporting required for EU financial licenses for crypto companies includes regular transaction reports, smart contract audits, disclosure of risk information and adherence to security standards.

License requirements in EU countries – comparison

Country	License type	Minimum capital	Director requirements	Physical office	AML/CFT	KYC	Reporting	Security standards
Lithuania	Electronic money	€50 000–€150 000	One director, EU resident	Yes	Yes	Yes	Yes	Yes
Germany	Forex broker	$20 000 000	One director, EU resident	Yes	Yes	Yes	Yes	Yes
France	payment services	€50 000–€150 000	One director – EU resident	Yes	Yes	Yes	Yes	Yes
Austria	MiCA/CASP	€50 000–€150 000	One director, EU resident	Yes	Yes	Yes	Yes	Yes

Practical steps for entrepreneurs

Illustration for the section «Practical steps for entrepreneurs» in the article «How to obtain a financial license in the EU»
Practical steps and recommendations for entrepreneurs are a tool that helps not only to shape a company’s growth strategy but also to increase business efficiency at every stage of development.

By following these approaches, an entrepreneur will be able to objectively assess their resources and make decisions that minimize risks and open up new opportunities.

How to choose a reliable consulting partner

Obtaining a license in Europe: a task that requires not only legal expertise but also a deep understanding of the specifics of each jurisdiction.

COREDO’s experience has shown: the key to success is a partner who takes on not only document preparation but also comprehensive support at all stages, including AML implementation/KYC, the selection of directors and the construction of a corporate structure.

How to minimize risks and avoid fines

financial services regulation in the EU is becoming increasingly strict. To minimize risks, it is important not only to comply with formal requirements but also to implement effective internal control mechanisms, compliance automation and regular employee training.

The COREDO team has implemented projects in which the introduction of automated monitoring systems reduced the likelihood of fines and sped up license approval.

How can I get a license quickly and cheaply?

Time and resource savings are achieved through well-designed business processes, preparing a complete package of documents correctly the first time and effective interaction with the regulator. The solution developed by COREDO includes checklists, templates and quality control tools at every stage, allowing clients to launch a business in the EU within optimal timeframes.

Key takeaways

financial license in the EU is not only a formal document but also a strategic asset that ensures legality, trust and access to European markets.

COREDO’s practice confirms: success in licensing depends on thorough preparation, transparency of business processes and the choice of a reliable partner. If your goal is to obtain a license in Europe and build a sustainable international business, it is important to act systematically, take into account all the requirements of regulators and implement best practices.

Registering an EU financial company and going through all stages of licensing is a task that requires not only expertise but also strategic thinking. The COREDO team is ready to share its experience, help avoid common mistakes and provide comprehensive support at every stage.

How can I obtain a financial license in the EU