Across Europe, demand for supervised fintech infrastructure continues to grow, especially among companies developing transnational fintech solutions, wallets, e-money issuance services, and payment offerings. One of the main instruments offered in this sphere is an electronic money institution (EMI) license in Europe, which allows entities to issue and manage e-money.
The harmonized rules and the option of carrying out business in several countries after getting permission in one member state are among the reasons why people still want an e-money license in Europe.
Overview
| Supervisory Authority | National financial supervisor of the chosen EU/EEA jurisdiction |
| Regulations for EMI License in Europe | EMD2 (2009/110/EC), PSD2, AMLD5, AMLD6 |
| Authorization Type | EMI authorization |
| Permitted Activities | E-money issuance, wallet services, transfers, card solutions |
| Client Funds Protection | Segregation of client funds from own resources |
| Key Requirements | AML/CFT procedures, risk controls, reporting obligations |
| Local Presence | EU-based entity with qualified directors and responsible officers |
| Review Process | Supervisory assessment followed by authorization decision |
European EMI license requirements
European supervisory bodies assess each case under EU-level directives and national rules applied by competent authorities. The principal legal acts include:
- EMD2 – 2009/110/EC;
- PSD2, with ongoing evolution toward PSD3 / PSR;
- AMLD5 and AMLD6.
Key expectations usually cover:
- Transparent ownership structure with identified beneficial owners
- Fit and proper assessment of directors and key persons
- AML/CFT arrangements aligned with EU anti-financial crime rules
- Segregation of client-held funds from own resources
- Secure IT architecture with cyber resilience capacity
- Clearly defined service flow, including onboarding and transfers
Advantages of EMI licensing in Europe
- The right to function throughout the EU/EEA after getting the permission from one member state;
- The capability of issuing stored-value instruments for fintech ecosystems;
- A direct connection to the SEPA infrastructure;
- More trust from partners and infrastructure providers;
- The convenience to carry on cross-border business;
- Compatibility with neobanking and fintech platforms.
Procedure for obtaining an EMI license in Europe
Initially, the project-layout is arranged so as to display in detail the service flow, user engagement, and fund movement.
Next a comprehensive set of documents is demonstrated, comprising:
- Business description and service logic;
- AML and CTF measures;
- Cybersecurity and IT resilience setup;
- Risk identification;
- Governance structure and key person roles.
Then the examination period starts. Regulators frequently ask for additional information on assurance of the service, segregation of client money, and the design of IT security.
Upon receiving the approval, the European electronic money institution (EMI) becomes operational in the given jurisdiction and thereafter the notification process is carried out at the EEA level.
What is included in our services
At Eternity Law International, support is provided on a full-cycle basis for those wanting to get or buy EMI license in Europe.
Scope includes:
- Selection of the most suitable EU jurisdiction;
- Formation of the structure in the chosen member state;
- Preparation of supervisory submission materials;
- AML/CFT framework development;
- Cybersecurity and IT resilience documentation
- Communication with supervisory authorities
- Post-authorization advisory support, etc.
Besides, we help in getting a crypto license in the Czech Republic or in DMCC (UAE).
Taxation of electronic money institutions (EMI) in Europe
Tax treatment varies across jurisdictions, but common elements include:
- Corporate income taxation in the country of establishment;
- VAT treatment depending on service type;
- Withholding tax in cross-border flows;
- Transfer pricing rules for group structures.
EU anti-tax avoidance rules require real economic substance, meaning actual presence and activity in the jurisdiction rather than formal registration only.
How much does an EMI license in Europe cost?
Costs of an electronic money institution license in the Europe depend on:
- Country selection;
- Complexity of service structure;
- Technology and IT setup requirements;
- AML/CFT and cybersecurity depth;
- Ongoing post-authorization obligations.
There are no fixed figures, as each case is shaped by scope and readiness level.
Our advantages
Eternity Law International supports fintech projects across Europe with a practical, results-oriented approach.
Our key strengths include:
- Experience across multiple EU nations;
- Understanding of supervisory expectations;
- Tailored structuring for fintech and wallet solutions;
- Focus on long-term stability in Europe;
- Coordination of multi-jurisdiction setups;
- Ongoing post-authorization support.
FAQ
Why is an EMI status needed in Europe?
It allows a business to lawfully issue e-money and provide regulated fintech offerings across the EU/EEA, including cross-border activity under a unified European framework.
Who needs to be an EMI in Europe?
Fintech companies, wallet providers, neobanking initiatives, and cross-border service platforms which handle e-money or customers’ balances are the ones who need it.
Are non-EU entities also allowed to apply for EMI status in the EU?
Yes, but the applicant must have a presence in an EU/EEA member state which is usually done by incorporation and through a local supervisory structure.
What is the average time taken by the EMI status process in Europe?
The timeframes vary from one country to another and depend on the complexity of the case; the review process is dictated by the readiness of documentation and supervisory feedback cycles.