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Obtaining an E-money License
Benefits of obtaining this license:
- A license allows you to issue your own currency;
- The presence of a license gives the right to open accounts for individuals and legal entities remotely;
- Visa and MasterCard plastic cards are available;
- It is possible to make payments in the SWIFT system;
- The process of obtaining a license takes up to 12 months (depending on jurisdiction).
E-money is digital money that could be exchanged electronically using technical devices such as a computer or mobile phone. Electronic money works on the principle of a prepaid bearer document. The most famous form of digital money is Bitcoin, which can be bought with fiat money.
Despite the many advantages of using electronic money, people are reluctant to use this type of payment. The main reason for this is the lack of a favorable legislative framework. The high level of trust to the online payment system Paypal is characterized by obtaining electronic money institution license. PayPal carefully monitors its reputation and in order to remain a leader and work according to the law, this payment system receives licenses in each state.
Should your business get E-money license
Obtaining a licence as an e-money institution has many advantages:
- resources saving - according to the fact that electronic money does not need to be printed, there is no need to invest money in production capacities, raw materials, labor servicing the printing process.
- e-money is a currency that is presented in electronic form, so there are no costs for packaging, transportation, security, etc.
- electronic money, unlike money in bank accounts, cannot disappear in the event of bank bankruptcy.
- unlike ordinary banknotes, electronic money do not have a physical form, and do not require separate storage places (for example, cash vaults).
- according to its specifics, there is no need to separate e-money into banknotes, so there is no reason to select the necessary amount (when making transactions).
- no need to spend time for recalculating your budget, this function is made by special programs.
- fast and convenient payment method, transaction takes several minutes.
- high level of security for transactions and storage for your money in a virtual wallet.
Disadvantages of digital cash:
- many countries still have not their own opinion regarding to e-money.
- for using the tools you need to connect to Internet, in some cases, you need special software.
- e-money management requires certain knowledge.
- in some situations, electronic money can be blocked, also it is quite problematic and sometimes impossible to return money.
- to link to E-wallet account, you need to remember the password (sometimes there are several passwords).
- to conduct large transactions or withdraw funds, it is necessary to pass identification (the payment system requests a scan of an identity document).
- to have an opportunity to withdraw funds, you need to pay a rather big commission (sometimes the commission can reach up to 5%).
- at the moment, electronic money has not conquered the market yet, not even all online stores are able to accept payment online.
- there is a chance that hackers could compromise your e-wallet.
Our company offers you to obtain license for issuing e-money, which will give you an opportunity to conduct your activity under the law in all states of the European Union. The advantage of this E-money license is the fact that you are received it in one of the EU countries and then you can conduct your business in other European countries. Our specialists are providing more detailed information on how to get electronic money license.
Key requirements for an EMI being established or authorised:
- It’s required one or more directors of the company; they must have appropriate professional training and experience in this field.
- E-money should have an office with the necessary number of staff.
- You need to incorporate a local company with a registered office in the jurisdiction of the application.
- Business plan.
The minimum authorized capital for getting a full EMI license is about 350,000 Euros. For small EMI, the requirements for the minimum authorized capital is lower than for EMI, but there should be at least 2% of the expected average monthly turnover.
At the same time, small EMI license has its own limitations on the average monthly turnover of the company:
- within 12 months, monthly transactions should not exceed 3 million Euro;
- the monthly issue of electronic money should not exceed 5 million Euros.
If the company's activity exceeds these values, the company must apply for an Authorized EMI.
The most popular jurisdictions for obtaining a license for electronic money are the Czech Republic and Lithuania. IQD Consulting lawyers will provide you with a choice of the best options for obtaining a license for electronic money.