Head of International Corporate Law and Fintech Practice
Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.
PAYMENT LICENSES
Payment licenses are a key element of fintech operations, allowing companies to provide legalized services in the areas of money transfers, e-money issuance, and payment management. Let’s take a look at the main types of licenses, their purpose, requirements, and current regulatory changes.
Main types of payment licenses
Payment Institution (PI) License
Allows the provision of a wide range of payment services in the European Union and the European Economic Area.
The activities consist of:
- Replenishment of customer accounts.
- Withdrawal of funds (to individuals and legal entities).
- Conducting transactions, including auto payments.
- Payments under the credit limit.
Basic requirements:
- Authorized capital:
€20,000 – for money transfers.
€50,000 – for transactions with additional confirmation.
€125,000 – for complex services.
- Documentation: business plan, AML/KYC methods, management structure.
Electronic Money Institution (EMI) License
Providing electronic money issuance services (e.g., cryptocurrency wallets, digital currencies).
Features:
- Similar to PI, but with additional requirements for protecting customer funds.
- Regulated by the PSD2 Directive in the EU.
Requirements:
- Capital from €350,000 (depending on the volume of transactions).
- Technological security standards (e.g., PCI DSS).
Payment Service Provider (PSP) License
Providing payment-related services in offshore jurisdictions (e.g., Belize).
Activities:
- Payment processing, money transfers.
- Account management, but no deposit acceptance.
Requirements:
- Capital: $5,000–$100,000 (depending on the volume).
- Registration with the IFSC (Belize), office rental or virtual address.
- Time to obtain: 3–5 months.
Money Transmitter License (USA)
Making money transfers in the USA, where the regulator is FinCEN (Financial Crimes Enforcement Network).
Requirements:
- Compliance with state-specific rules (different states have their own requirements).
- Audit for compliance with AML standards.
Payment Gateway License (India)
Providing payment gateway services for online transactions, where the regulator is the Reserve Bank of India (RBI).
Requirements:
- Net capital of 100 million rupees (~$1.2 million).
- Security certificates (e.g., SSL).
License obtaining procedure
General steps (using the example of PI/EMI):
- Choice of jurisdiction
EU: Strict requirements, but access to the single market.
Offshore: Lower costs, but restrictions on working with European clients.
- Preparation of documents:
Articles of association, business plan, source of funds.
Documents of managers (passports, powers of attorney).
- Application submission:
In the EU – to the national regulator (for example, the CBI in Ireland).
In the USA – through FinCEN.
- Due diligence:
AML/KYC compliance check.
Business model audit.
Legal nuances and updates 2025
1) Digital transformation:
- Mandatory electronic filing of documents through government platforms (e.g. Sistema Informativo Camerale in Italy).
- Use of qualified e-signatures (CIE, SPID).
- Mandatory registration of beneficial owners (UBO) in specialized registries.
- Notification of transactions >€10,000 to the Financial Intelligence Unit (UIF).
3) Tax changes:
- Implementation of Pillar Two (minimum corporate tax of 15% for large companies).
- Free Trade Zones (ZES) with a 10% IRES rate.
Starting this year, key trends are digital optimization of procedures, increased transparency through UBO registers, and adaptation to global tax reforms. Therefore, it is critical for fintech companies to cooperate with professional lawyers, such as our team at Prikhodko & Partners, and auditors to avoid possible fines and delays.
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Compensation for moral, material damage
Protection of honour, dignity, and business reputationContract Development for Business and Legal Entities
Licensing of business activities
Compensation for moral, material damage
Legal services in the field of cryptocurrency and blockchain
REGISTRATION OF COMPANIES AND OPENING OF BANK ACCOUNTS
Sale and purchase of ready-made firms
Grants and attracting investment
Business registration and support in Great Britain
Business registration and support in Switzerland
Business registration and support in the EU
Business Registration and Support in the Gulf Countries (GCC)
Business registration and support in Turkey
Business registration and support in USA
Lawyer for administrative cases
Legal services for medical businesses and doctors
Protection of honour, dignity, and business reputation
Real estate transaction support
Escort of the tender participant
Trial lawyer: support and defense in court
European Court of Human Rights (ECHR)
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