Eternity Law International Payment & E-Money Institutions EMI License Electronic money and their perspective

Electronic money and their perspective

Published:
February 5, 2020

LICENSE FOR ELECTRONIC MONEY IN EUROPE

Electronic money is a fairly new method of payment, but now it is increasingly conquering the world.

The use of electronic currency was made possible thanks to the development and implementation of innovations in payment technology. More and more banks and organizations are switching to financial transactions through electronic money.

Companies have every right to accept and transfer virtual currency solely on the basis of special licenses.

APPLICABILITY

Financial experts suggest that in the near future, electronic money will replace other forms and take a stable leading position. In support of this, there are a number of indicators:

  • no need to make an exchange;
  • the ability to store funds in different currencies;
  • fast transfers, payments and conversion;
  • the complete lack of fake;
  • high level of storage security.

But not all large companies and holding companies trust virtual currencies, as a prerequisite is the issuer’s license, which allows to prove its viability and security.

In order to obtain such a permit, strict compliance with the conditions and the mandatory passage of an audit are required in accordance with the legislation of the jurisdiction in which electronic money transactions will be conducted.

WHY DO YOU NEED TO GET A LICENSE

All electronic money has a direct impact on the financial turnover in countries. Every day the percentage of electronic payments and transfers is growing. That is why decisions were made to monitor and regulate the actions taken with virtual currency.

Legislative control helps to reduce the risk of laundering money obtained illegally, and create a safe system for the use of electronic funds.

In the countries of the European Union, work with electronic money is considered illegal without a license. Obtaining this permission proves full compliance with all necessary safety requirements.

Also, having a license allows you to carry out financial activities throughout the European Union.

WHO GETS THE LICENSE?

To organize work on servicing the turnover of electronic money, the company must issue a permit.

Firms that open electronic wallets and issue credit cards (except banking institutions) are also subject to mandatory licensing.

To obtain this document, the company must comply with a number of requirements. There are also several types of licenses. All of them are intended for companies of various types and types of activities.

Upon receipt of a permit, the issuer pays a state fee, the amount of which varies, based on the legislation of the country and the type of company.

MANDATORY REQUIREMENTS FOR OBTAINING PERMISSION IN THE EUROPEAN UNION

EU law governs the acquisition of an authorization document when all conditions are met. The company is obliged to strictly adhere to the current law adopted in the jurisdiction.

The bulk of the recipients are licensed in one of the countries of the European Union, as this makes it possible to offer their services throughout the EU after certification. And also such a license is a kind of sign of quality and reliability.

Some jurisdictions offer doing business on mutually beneficial terms. These include:

  • tax incentives;
  • acceptable conditions for performing cash transactions and much more.

Thus, countries encourage companies to go through licensing with them.

If the organization fully complies with all the characteristics, it starts preparing a package of documents and transfers them to the regulatory state body of the country, where the application will be considered.

The duration of this operation can be from 1 to 12 months. The literacy of the submitted application and the volume of documents submitted are taken into account.

LIST OF REQUIREMENTS FOR OBTAINING PERMISSION IN THE EU

  1. Availability of work experience and specialized education for all directors and founders.
  2. Mandatory location of the office in the EU.
  3. Availability of registered capital. Its amount may vary depending on the type of company and the scope of its services.
  4. Making mandatory payment of state and annual fees.
  5. The cost of a license is directly proportional to the size of the proposed business and depends on the legislation of the country that issues the license.
  6. It is also worth mentioning that some companies operate through offshore or without a license. Such systems are not credible, and as a result, activities in many countries are prohibited for them.

DIFFICULTY GETTING AN EMI

Companies that receive EMI approval, for the most part, have experience in this field and are fully compliant with all necessary standards. Such companies either expand their activities or undergo a reorganization procedure.

The most common problem for such firms are employees. It is very difficult to ensure the recruitment of qualified personnel, but this is a necessary condition.

The state body performing the audit will definitely pay attention to the company specialists. They check their level of knowledge and qualifications, as well as their experience in this field. The directors of the company are also undergoing a serious check.

WHERE TO GO WHEN DIFFICULTIES ARISE

If assistance is required in obtaining a license, you should contact qualified lawyers. Their experience and skills will help start-up companies go all the way with minimal time costs.

Eternity Law International specialists will be happy to рrovide you with assistance in choosing a country, fully carry out the process of collecting documents and submitting an application. We guarantee full support.

You could be interested

Operational crypto company in Estonia for sale

Below you can see the basic information regarding the operational crypto company in Estonia for sale Operational crypto company in Estonia – what’s included: Crypto licensed company in Tallinn, Estonia; License was prolonged in June 2023; Operational bank accounts in Nextpay and Bilderlings; Opened accounts for payments in euros via SEPA and SWIFT; Accounts opened...

AFS license in Australia for sale

New offer – AFS license in Australia for sale. Please check out the main information about the transaction below. Australian Financial Services License (AFSL) for sale: authorizations This license allows the licensee to execute the following types of activity to retail and wholesale clients: general financial product advisory service for such classes of financial products...

For sale beer retail license

Beer retail license for sale The liquor trade is one of those businesses that require a compulsory license. Its availability and performance of licensed services are strictly checked by regulatory authorities. At the same time, a license is needed to trade both strong and low alcohol drinks, for example, for retail trade in beer. Such...

Maltese gambling licensed company for sale

For the attention of interested investors – Maltese gambling licensed company for sale. Please check out the key information regarding the proposal below.  Gambling license in Malta for sale: details of the transaction B2C license issued by Malta Gaming Authority. Contracts with payment provider; Contracts with game provider; Contracts with additional service; All company bank...

BANK FOR SALE USA

Ready-made USA Investment Bank license for sale. Bank is absolutely clean, no debts, liabilities, leniency, etc. It’s a shell with multi-currency correspondent bank account in HSBC, KTT Telex number. No SWIFT yet. SWIFT code will be opened for Buyer for free once license transfer completed. Quick sale payable in 2 installments – 50% down and...

Financial intermediary license in Switzerland for sale

This is a new investment opportunity – financial intermediary license in Switzerland for sale. Please check out the main details regarding this proposal below. Swiss financial intermediary license for sale: key considerations Clean licensed company ready to start operation; Company is incorporated in 2019 and authorized by SRO; License falls under the para-banking category; Authorizations...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7