What is an EMI License?
EMI licensing is a cutting-edge method of providing banking services to customers all around the world using digital technology. An EMI is a type of financial institution that operates differently from traditional banks. An Electronic Money Institution (EMI) is a company, organization, or government agency that is authorized to issue electronic money. With this EMI license at hand, in addition to the services offered by conventional PSPs, EMI is also authorized to issue electronic money or e-money.
E-money, or electronic money, is a digital representation of currency that can be held in electronic wallets (EMI) or in banking systems (e-wallets) to facilitate electronic payments and transfers. Electronic money is typically utilized for electronic transactions due to the high efficiency of this technology. It’s worth is pegged to the same market forces as fiat money and can be spent to pay for goods and services.
Why Should You Choose Finexmo?
At Finexmo, we are experts in navigating the complex requirements of Electronic Money Institution (EMI) licenses across different jurisdictions and managing interactions with government agencies. Our focus is solely on fintech and blockchain, providing support for both startups and global corporations in these technically complex areas.
Our team comprises of knowledgeable financial and legal counselors, as well as digital advisors, equipped with the expertise and experience required to obtain an EMI license efficiently and in full compliance with all regulatory procedures and requirements for Payment system license applications. Trust us to guide you through the EMI licensing process and help you achieve success in the shortest possible time.
EMI License Procedure and Requirements
The first step in obtaining approval is to form a legal entity in the host nation and you have two options. First, a small-scale EMI license that is for business with a turnover of up to € 3,000,000 per month over the course of 12 months. Second, your company would be eligible for conventional/standard EMI if it banked more than € 3,000,000 in turnover per month.
A person does not need to be a resident of the country to qualify for an EU e-money license or EMI banking license. Yet, there are a few rules that must be followed:
- The company’s leadership (COO, CEO, and managers) must be well versed in the details, the risks involved, and the most efficient methods for resolving them. Ignorance and inexperience might be valid reasons for rejection.
- There must be some sort of physical presence (an office, workers, and resident directors) in the nation of registration. The board should also have its meetings in the country. Indeed, it is incumbent upon you to produce all the documentation proving that this is a genuine, long-lasting business venture.
- Compliance policy issues are given considerable consideration. Internal processes to counter fraud and protect customers’ welfare must be devised, and a domestically based observation manager must be recruited.
- Financial institution accounts are essential for the organization’s commercial operations. There should be deposit accounts established in the company’s name with reputable financial institutions.
- Included in the paperwork package should be a business plan and the company’s strategy for the following three years, including the offered services and contingency plans in the event of unforeseen circumstances.
- All financial transactions must be recorded, reported annually to the appropriate authorities, and independently audited by the organization. Good accounting and reporting are required.