To successfully run eCommerce businesses in the European Union (EU) market, you must get permission to issue e-money (electronic money) in a Baltic State. The owners of such rights must freely do their activities in the EU.
For instance, getting an EMI license in Lithuania is easier than in the UK and other jurisdictions. Thanks to it, you may get SWIFT payment, open an account for a corporate firm, and provide different financial services to your international clients.
Understanding EMI
EMI, or Electronic Money Institution, is a licensed legal entity with the right to provide payment services to clients. It also issues electronic money and performs the circulation of e-money.
Today, the financial system includes institutions other than banks.
In addition, Lithuania’s membership in the EU offers EMI licenses with access to different markets, making the country a perfect hub for doing business on the continent.
Why Obtain an EMI License in Lithuania
Lietuvos Bankas offers guidance and support to FinTech firms. This, in turn, facilitates a smoother process of licensing. In addition, the country provides a favourable environment to do business. Other reasons for obtaining an EMI license in the country include the following:
- Technological infrastructure – The country has a skilled workforce and advanced technological infrastructure that supports FinTech innovation.
- Strategic location – The location of the country in the European Union allows easier access to different markets in Europe.
Regulations
Lietuvos Bankas (Bank of Lithuania), working under the EMI law in the country, serves as the regulatory & supervisory authority that governs EMIs in Lithuania. Its main objectives include the following:
- Issue a license to PI (Payment Institutions) or EMIs and oversee their business operations to ensure they align with all the regulatory frameworks while taking measures, like license revocation, to uphold the integrity of the market.
- Respect and obey EMI law and other regulations to uphold and establish standards to maintain the financial ecosystem’s integrity.
- Protect consumers’ interests through regulatory practices, thus improving the reliability and security of the EMI sector.
- Supervise e-money services to ensure transparency and compliance with regulatory standards.
- Elevate the country’s reputation as one of the leading FinTech destinations in the EEA (European Economic Area), making sure it is seen as a dependable and secure hub for all financial activities.
Securing EMI License in the Country
Before you apply, consult experts to help you register a company by providing a local company secretary and a local company address. The process should take about 14 days. After registering, you can proceed to open a business bank account with an international or local bank. Expect the account to be ready within one month. Generally, expect your EMI application to take about three months.
In conclusion, an EMI license in Lithuania provides many benefits for businesses looking to enter the FinTech market, including passporting rights, access to SEPA, and a streamlined licensing process. By meeting all the structural requirements, businesses can leverage the country’s favourable environment to thrive and innovate in the FinTech market.
