Finance institutions and Fintech licensing in the single European financial market

Fintech companies, banks, electronic money institutions (EMI’s), payment service providers (PSP’s), insurance companies, MIFID securities brokers, investment advisors, Crypto-Asset Service Providers (CASP’s) and other financial institutions are subject to rigorous regulatory and risk management requirements within Europe.

Licensing a financial institution in one European Union (EU)/European Economic Area (EEA) member states unlocks the ability to provide services in all other states, enjoying benefits of the world’s biggest common market of 450 million wealthy consumers and over 20 million businesses.

Purchasing an existing PSP, EMI, or other licensed entity can significantly reduce the time required for licensing and operational setup. ECOVIS provides expert guidance in selecting the right acquisition target and managing the entire transaction process to ensure a fast and compliant market entry.

With the full implementation of the pan-European Markets in Crypto-Assets (MiCA) regulation, crypto asset service providers can now benefit from passportization across the EU/EEA. ECOVIS provides comprehensive legal support for obtaining a CASP license, ensuring full compliance with the harmonized MiCA requirements.

European Fintech licensing jurisdictions

Despite changing regulatory environment, Lithuania remains the premier jurisdiction for EMI and payment service provided licensing in the EU. It boasts the highest number of issued licenses and operational Fintech companies, supported by a sophisticated regulatory environment.

Estonia is traditionally recognized as a leading jurisdiction for Investment Funds and Management Companies licensing under the EU AIFMD and UCITS directives. Estonia features a unique 0% corporate income tax rate on all retained or reinvested profits, allowing businesses to defer taxation until profits are distributed to shareholders.

Latvia – Europe’s rising Fintech licensing powerhouse

Following the adoption of a new national Fintech strategy, Latvia has emerged as a premier EU licensing jurisdiction. Recently issuing one of the highest numbers of licenses in the bloc, the country offers streamlined pathways for Payment and Electronic Money Institutions (PI/EMI), Crypto-Asset Service Providers (MiCA/CASP), and MiFID investment advisory firms.

With offices across Lithuania, Latvia, Estonia, and the rest of the EU, ECOVIS leverages a network of local professionals dedicated to supporting international clients in selecting and establishing themselves in the most suitable EU jurisdiction.

For non-European payment and money service business we currently recommend Canadian Money Service Business (MSB) license.

ECOVIS global reach and local expertise in Fintech licensing

ECOVIS is the leading global consulting group with over 16000 professionals operating in more than 90 countries around the world including every EU country. Deep local knowledge in every country where ECOVIS office is located and international expertise of the interdisciplinary network of ECOVIS International professionals allows selection of the right licensing jurisdiction for every financial business. Below you will find short descriptions of Fintech licensing solutions and services offered by ECOVIS.