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Electronic Money Institution (EMI) license [RU]
EMI License: What prospects does it offer your business?
In finance and various industries, digital transformation is underway. To meet customer expectations for better deals and convenient tools for handling both fiat and electronic money, obtaining an EMI license is a strategic move. It expands your services and attracts new consumer groups.
A brief overview of the EMI License
The Electronic Money Institution (EMI) license is a financial document that authorizes companies to issue and conduct various operations with electronic money. It also serves as a regulator in the development of virtual payment instruments and mobile applications in the industry, facilitating online transactions with digital currencies.
You can obtain two types of licenses:
- AEMI (Authorized Electronic Money Institution). Suitable for companies with a monthly turnover of payment transactions exceeding 5 million euros. Allows conducting activities throughout the European Economic Area (EEA).
- SEMI (Small Electronic Money Institution). Optimal for small firms with a projected turnover not exceeding 3 million euros. Small EMI can provide their services in the territory of the country of registration.
The license allows your enterprise to become an Electronic Money Institution establishment. In other words, your company can operate like a bank, even if it is not officially a banking institution. However, it is essential to consider one significant limitation:
An EMI enterprise DOES NOT have the right to provide its customers with opening deposits, investment services, and/or lending services.
Consider this limitation when entering the digital financial services market and developing a company growth plan after obtaining the EMI license. To learn more about the specifics of digital business transformation in the electronic money industry, you can consult with IFB experts. Our team also provides legal assistance, IT support, audit and accounting services, and much more.
What opportunities does the EMI License open for Business Owners?
The authorization from the EMI is similar to the license for a payment service provider (PSP). EMI provides its owner with the same opportunities as PSP but also allows for various operations with electronic money. Thus, your company will legally be able to:
- Issue its virtual currencies
- Conduct online transactions
- Provide services for the exchange of virtual currencies
- Develop new electronic wallets and payment mobile applications
- Offer acquiring services to clients
- Launch its crypto projects
- Conduct and receive payments from partners and clients in electronic currency
Obtaining an EMI license is indispensable if you plan to expand your company’s capabilities or enter the virtual financial services market. IFB experts are ready to assist you at every stage of the application process.
Features of the EMI License and requirements for obtaining it
This regulatory document is issued only by the relevant authority, such as the national bank of the chosen country. IFB experts have extensive experience working with various national banks of European Union countries. We are informed about the requirements and procedures in each of them, guaranteeing you assistance in obtaining the EMI license, regardless of the jurisdiction you choose.
To obtain a license abroad, you need to:
- Provide biographical data of the top management and obtain approval from the state regulator
- Have a minimum of two directors who are residents of the EU
- Submit financial statements and the results of an independent audit of your company
- Demonstrate compliance with all anti-money laundering and counter-terrorism financing norms (AML procedure)
- Have a client’s bank account to keep their funds separate from your company’s capital and more
In addition, EMI license holders are required to comply with specific regulatory requirements and security standards to ensure the protection of their clients and the effective functioning of their financial services.
Popular countries for EMI License
Whether you’ve chosen your EMI license destination or are still deciding, IFB experts are ready to assist. Explore the favorable conditions for obtaining an EMI license in popular European countries.
