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Licensing

Financial and Crypto Licences in the EU: Full-Cycle Advisory

Obtaining a licence is a prerequisite for operating legally in a regulated financial market. Choosing the right licence and jurisdiction directly affects business opportunities, time-to-market, and access to international markets.

Since 2016, COREDO has been assisting clients with obtaining financial and crypto licences, helping them select the most suitable regulatory solutions and navigate licensing procedures in more than 23 jurisdictions.

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Licensing Overview

Financial services licensing in the European Union is based on a unified regulatory framework that creates a harmonised market. Key legislative acts include:

PSD2 (Directive 2015/2366) — governs payment services and the activities of payment institutions (PI) and Payment Service Providers (PSP).
EMD2 (Directive 2009/110/EC) — governs the issuance of electronic money and the activities of Electronic Money Institutions (EMI).
MiFID II (Directive 2014/65/EU) — governs investment activities, securities trading, and forex brokerage.
CRD IV (Directive 2013/36/EU) — governs banking activities.
MiCA (Regulation (EU) 2023/1114) — governs the crypto-assets market and establishes a single CASP licence for the entire EU.

Holding an EU licence gives a company the right to passporting — the ability to provide services in all EU/EEA member states without obtaining separate licences in each country. This is a significant advantage for financial companies targeting the pan-European market.

Financial Licences

Financial licences cover a broad range of regulated activities — from basic payment services to full banking operations and investment fund management. COREDO supports the acquisition of all types of financial licences available in EU and other jurisdictions. A detailed overview of all subtypes is available on the Financial Licences page.

EMI — Electronic Money Institution Licence

An Electronic Money Institution (EMI) licence is for companies issuing electronic money: digital wallets, prepaid cards, and payment products. Governed by EMD2 (Directive 2009/110/EC). Minimum share capital — EUR 350,000 (EMD2, Art. 4). The licence grants passporting rights across all EEA countries. Popular jurisdictions: Lithuania (Lietuvos Bankas), Estonia (Finantsinspektsioon), Czech Republic (ČNB).

Learn more about the EMI licence →

PSP — Payment Institution Licence

A Payment Service Provider (PSP) / Payment Institution (PI) licence is for providing payment services: money transfers, acquiring, payment initiation (PISP), and account information (AISP). Governed by PSD2 (Directive 2015/2366). Minimum share capital depends on the range of services: from EUR 20,000 (money transfers) to EUR 125,000 (full service range). Some countries offer simplified regimes: Small Payment Institution (SPI) in Poland, Agent PI in Lithuania.

Learn more about the PSP licence →

Banking Licence

Allows acceptance of deposits, issuance of loans, and provision of the full range of banking services. This is the most strictly regulated licence type: minimum share capital — EUR 5,000,000 (CRD IV, Directive 2013/36/EU, Art. 12), and the licensing process takes 12 to 24 months. The licence is covered by EU passporting.

Learn more about banking licences →

Investment Activity Licence

Allows management of investment funds and client portfolios. Governed by MiFID II (Directive 2014/65/EU) and, for fund managers, AIFMD. In the Czech Republic, management of alternative investment funds below the threshold is governed by ZISIF §15 (simplified regime) — one of the most accessible forms of licensing in the EU.

Learn more about the investment activity licence →

Forex Broker Licence

For conducting brokerage activity in the foreign exchange market, executing client orders, and market-making. Governed by MiFID II (Directive 2014/65/EU). Requirements include minimum share capital (EUR 730,000 for a full investment business), risk management systems, segregation of client funds, and regulatory reporting.

Learn more about the forex broker licence →

Securities Trader Licence

Allows trading in equities, bonds, and derivatives. Governed by MiFID II (Directive 2014/65/EU). Compliance, risk control systems, and regulatory reporting requirements are similar to those for investment licences.

Learn more about the securities trader licence →

Trust and Fund Management Licence

Allows the creation and management of trusts and funds for clients. Licensing requirements and structure depend on the jurisdiction and fund type. In the Czech Republic, a simplified regime is available for sub-threshold AIFs (ZISIF §15), which is attractive for managers of smaller funds.

Learn more about the trust management licence →

Foreign Exchange

Licensing of foreign currency exchange operations. In the Czech Republic — special registration with ČNB (Česká národní banka) for domestic market operations without EU passporting. For full operations with EU passporting, a MiFID II licence is required.

Learn more about the Foreign Exchange licence →

Crypto Licences

With the introduction of the MiCA regulation (Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114), the EU has established a single licence for crypto-asset service providers — CASP (Crypto-Asset Service Provider). MiCA replaces fragmented national VASP (Virtual Asset Service Provider) regimes with a single European standard and passporting rights across the entire EU.

CASP under MiCA covers three classes depending on the type of activity:

Class 1 — custody and administration of crypto-assets, exchange of crypto-assets, minimum share capital EUR 50,000.

Class 2 — the above plus exchange of crypto-assets for fiat currencies and other services, minimum share capital EUR 125,000.

Class 3 — full range of crypto services, minimum share capital EUR 150,000.

MiCA requirements include: AML/CFT policies, protection of client funds, management of reserve assets, disclosure via a White Paper, and corporate governance requirements.

The transition from national VASP regimes to CASP under MiCA is implemented in accordance with national transitional periods. Companies that held a national VASP licence are required to undergo re-licensing under MiCA within the established deadlines.

COREDO supports CASP licence acquisition in 16 EU jurisdictions. Key regulators: ČNB (Czech Republic), Lietuvos Bankas (Lithuania), Finantsinspektsioon (Estonia), KNF (Poland).

Learn more about crypto licences →

Licence Type Comparison

Licence Type	Regulatory Framework	Min. Capital (regulatory)	EU Passporting	Timeframe
EMI	EMD2 (Dir. 2009/110/EC)	EUR 350,000	Yes	6–18 months
PSP / PI	PSD2 (Dir. 2015/2366)	EUR 20,000–125,000	Yes	3–12 months
Banking	CRD IV (Dir. 2013/36/EU)	EUR 5,000,000	Yes	12–24 months
Investment / MiFID	MiFID II (Dir. 2014/65/EU)	EUR 50,000–730,000	Yes	6–12 months
CASP Class 1	MiCA (Reg. 2023/1114, Art. 67)	EUR 50,000	Yes	3–6 months
CASP Class 2	MiCA (Reg. 2023/1114, Art. 67)	EUR 125,000	Yes	3–6 months
CASP Class 3	MiCA (Reg. 2023/1114, Art. 67)	EUR 150,000	Yes	3–6 months

Note: Minimum capital is stated in accordance with EU directive and regulation requirements. COREDO’s licensing service fees are listed on the respective licence type pages.

Jurisdictions

COREDO works with financial and crypto regulators in the following key jurisdictions:

EU and EEA Regulatory Centres

Lithuania — Lietuvos Bankas. In demand for EMI, PSP, and CASP licences. A pragmatic regulator with balanced application review timelines.

Czech Republic — Česká národní banka (ČNB). Suitable for EMI, PSP, investment funds (ZISIF), CASP (MiCA), and forex. COREDO is headquartered in Prague, providing direct access to the regulator.

Poland — KNF (Komisja Nadzoru Finansowego). A Small Payment Institution (SPI) is available — a simplified payment institution regime for volumes not exceeding EUR 1,500,000 per month. For CASP — a full licence via KNF.

Estonia — Finantsinspektsioon (EFSA). Attractive for CASP, PI, and EMI.

United Kingdom — FCA (Financial Conduct Authority). EMI, PI, and crypto licences following Brexit are regulated separately from the EU regime, without passporting into the EU.

Spain, Portugal, Germany — PSP/EMI through the respective national regulators.

Non-EU Financial Licensing Jurisdictions

Singapore

MAS (Monetary Authority of Singapore) licensing. COREDO advises on payment institution licences, electronic money institution authorisations, and investment firm licensing under Singapore’s regulatory framework. Singapore is a major hub for financial services with access to ASEAN markets.

Canada

FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) registration for Money Services Businesses (MSB). COREDO coordinates MSB registration including payment transmission services, foreign exchange dealing, and virtual asset service provider (VASP) activities for companies seeking to operate across Canadian provinces and territories.

United Kingdom

Beyond EU operations, UK-FCA regulated structures remain significant for international financial companies. COREDO advises on FCA authorisation for payment institutions, electronic money institutions, investment firms, and crypto asset firms under the FCA’s regulatory framework.

Switzerland

FINMA (Swiss Financial Market Supervisory Authority) licensing for banks, payment service providers, and financial market infrastructures. COREDO also coordinates SRO (Self-Regulatory Organisation) registration for crypto-asset service providers in Switzerland’s balanced regulatory environment.

Dubai and UAE

VARA (Virtual Assets Regulatory Authority) licensing for crypto-asset service providers, including exchanges, custodians, and trading platforms. COREDO supports clients in establishing VARA-licensed operations in Dubai’s global financial centre.

Hong Kong and Asia-Pacific

Company registration and initial licensing consultation across Hong Kong, India, Malaysia, and other Asia-Pacific jurisdictions (part of COREDO’s 38+ jurisdiction corporate registration network).

Company Registration Network (38+ Non-EU Jurisdictions)

Beyond licensing, COREDO coordinates company registration and legal establishment across a global network including:

Hong Kong

Singapore

United States (Delaware, New York)

British Virgin Islands

Cayman Islands

Mauritius

And 32 other jurisdictions for corporate structuring.

The Licensing Process with COREDO

COREDO manages licensing projects according to a unified methodology adapted to the requirements of the specific regulator and licence type:

Preliminary Screening.

Analysis of the client’s business model, identification of the licence type and optimal jurisdiction. Risk assessment and evaluation of compliance with the regulator’s preliminary requirements.

01

Corporate Structure Preparation.

Where necessary — registration of a legal entity in the required jurisdiction, formation of the board of directors, appointment of an AML officer (MLRO).

02

Documentation Development.

Business plan, AML/CFT policies and procedures, description of IT architecture, financial projections, documentation of founders and beneficial owners. For PSP/EMI — description of payment products and safeguarding procedures. For CASP — a White Paper under MiCA.

03

Application Submission.

Compilation of the complete document package in accordance with regulatory requirements and submission of the application. COREDO liaises directly with the regulator.

04

Review Support.

Responding to regulator queries, adjusting documentation, providing additional information. This stage is critical for a successful outcome.

05

Licence Receipt.

Following regulatory approval — receipt of the official licence and preparation for launch: opening bank accounts, setting up compliance processes, connecting infrastructure.

06

Why COREDO

Since 2016, COREDO has been advising financial companies, fintech startups, and crypto businesses on licence acquisition across the EU and beyond.

Experience since 2016.

Over nine years of operation, COREDO has completed dozens of licensing projects — EMI in Estonia, PSP in Lithuania and the Czech Republic, investment funds, CASP under MiCA, forex licences. We know the regulatory requirements and the typical grounds for refusal.

Working with 23+ jurisdictions (with expansion into 38+ for corporate services).

The COREDO team has practical experience working with regulators and licensing authorities across Europe, the United Kingdom, Singapore, Canada, Switzerland, the UAE, and other jurisdictions. The company also supports business incorporation and corporate structuring in more than 38 international jurisdictions.

Full-cycle support.

COREDO guides projects from legal entity registration through to licence receipt and post-licence setup: AML policies, account opening, payment infrastructure connection.

Legal expertise.

COREDO’s legal team specialises in EU financial regulation: PSD2, EMD2, MiFID II, MiCA, AIFMD, CRD IV. We prepare documentation that meets the specific requirements of the regulator, not template standards.

Prague-based team.

Headquarters in the Czech Republic provides direct access to ČNB and convenience for clients from the EU and CIS countries.

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Our Experts

Licensing projects at COREDO are handled by lawyers with experience working with EU regulators.

Pavel Kos

Head of Legal. At COREDO since 2017. Responsible for the legal preparation of licence applications, liaison with regulators, and development of corporate documentation. Specialisation: EU financial law, PSD2, EMD2, MiCA.

Basang Ungunov

Lawyer. On the COREDO team since 2022. Participates in the preparation of AML/CFT documentation, corporate structures, and the legal components of licence applications.

Frequently Asked Questions

What licence is needed for a payment application?

For an application that initiates payments or provides account information, a PSP (Payment Institution) licence under PSD2 (Directive 2015/2366) is required. If the application issues electronic money or manages wallets — an EMI licence under EMD2. The specific type depends on the business model; we conduct a preliminary screening free of charge.

In which EU country is it easiest to obtain a financial licence?

There is no universal answer: each jurisdiction has its own specifics regarding timelines, capital requirements, and regulatory acceptance. Lithuania is in demand for EMI and PSP due to predictable timelines; Czech Republic — for investment funds (ZISIF §15) and forex; Estonia and Poland — for CASP. COREDO helps select the jurisdiction for the specific business model.

What is passporting and how does it work?

Passporting is a mechanism under PSD2 (Art. 28), EMD2, and CRD IV that allows an EU licence holder to provide services in any EEA member state without obtaining a separate licence. To do so, the licensee notifies the home regulator, which forwards the notification to the host regulator. MiCA provides an equivalent mechanism for CASP.

How long does it take to obtain a licence?

Timelines depend on the licence type and jurisdiction: from 1–3 months for SPI registration in Poland to 18–24 months for a banking licence. PSP and EMI licences typically take 6–12 months. CASP under MiCA — 3–6 months in most jurisdictions. Timely and complete submission of documentation is the key factor in timelines.

Is a licence required to work with cryptocurrency in the EU?

Yes. With the introduction of MiCA (Regulation (EU) 2023/1114), crypto-asset activities (custody, exchange, trading, and other services) in the EU require a CASP licence. National VASP regimes are being replaced by a single MiCA licence. Transitional periods apply until the established dates depending on the jurisdiction.

Can I purchase a ready-made licensed company?

Yes. In some cases, purchasing a ready-made licensed company (EMI, PSP, CASP) is faster and more cost-effective than going through the licensing procedure from scratch. COREDO maintains a portfolio of companies for sale in the EU — see the Companies for Sale section.

Submit Application

Submit an application — our experts will conduct a preliminary screening and help determine the optimal licence type and jurisdiction for your business.