Country guide · Europe

🇪🇺 Financial licensing in European Union (passportable regimes)

Harmonised EU regimes (CRD, PSD2, EMD2, MiCA) authorised nationally and passportable across the EEA.

EU directives and regulations harmonise the main financial authorisations. A licence granted by a national competent authority in one member state can generally be passported to others through notification. Credit institution licences are granted by the ECB within the Single Supervisory Mechanism on proposal of the national authority. Payment and e-money institutions are authorised nationally under PSD2 and EMD2. Crypto-asset service providers are authorised under MiCA.

Regulators

European Securities and Markets Authority (ESMA)
MiCA register and CASP guidance
Official website
European Banking Authority (EBA)
Single rulebook and guidelines for banks, PIs and EMIs
Official website
European Central Bank (Banking Supervision) (ECB)
Grants and withdraws credit institution licences in the euro area
Official website

Licence and authorisation types

Banking licence

EU credit institution

Regulator: European Central Bank (Banking Supervision) (ECB)
Permitted activities: Taking deposits or other repayable funds from the public and granting credits for own account.
Minimum capital: Initial capital of at least EUR 5 million (CRD Art. 12), subject to national options.
Ownership, management & substance: Head office in the member state of authorisation; two persons effectively directing the business; robust governance.
Application procedure: Application to national competent authority; licence granted by ECB for euro-area SSM members.
Government fees: Verification required — varies by member state
Indicative timeline: No reliable published estimate
Limitations: Passporting available within the EEA.
Legal basis: Directive 2013/36/EU (CRD); Regulation (EU) 575/2013 (CRR)

Electronic money institution (EMI)

EU electronic money institution

Regulator: European Banking Authority (EBA)
Permitted activities: Issuing e-money, providing payment services, operating payment accounts linked to e-money.
Minimum capital: Initial capital of at least EUR 350,000 (EMD2 Art. 4) plus ongoing own funds.
Ownership, management & substance: Head office in the authorising member state; local management and compliance expected by most NCAs.
Application procedure: Application to national competent authority under EMD2 and PSD2 requirements.
Government fees: Varies by member state — Verification required
Indicative timeline: No reliable published estimate
Limitations: No deposit-taking; no interest on e-money; safeguarding required.
Legal basis: Directive 2009/110/EC (EMD2)

Payment institution (PI)

EU payment institution

Regulator: European Banking Authority (EBA)
Permitted activities: Payment services listed in PSD2 Annex I (e.g. account services, transfers, acquiring, money remittance, payment initiation).
Minimum capital: EUR 20,000 (money remittance only), EUR 50,000 (payment initiation only), EUR 125,000 (other services) — PSD2 Art. 7.
Ownership, management & substance: Head office in authorising member state.
Application procedure: Application to national competent authority; EBA guidelines on authorisation information apply.
Government fees: Varies by member state — Verification required
Indicative timeline: No reliable published estimate
Limitations: Cannot issue e-money or take deposits. PSD3/PSR reforms in progress.
Legal basis: Directive (EU) 2015/2366 (PSD2)

Crypto-asset service provider (MiCA CASP)

MiCA crypto-asset service provider

Regulator: European Securities and Markets Authority (ESMA)
Permitted activities: Crypto-asset services under MiCA Art. 3(1)(16): custody, trading platform, exchange for funds or crypto, execution, placing, RTO, advice, portfolio management, transfer services.
Minimum capital: EUR 50,000 / 125,000 / 150,000 depending on services (MiCA Art. 67 and Annex IV), or a quarter of fixed overheads if higher.
Ownership, management & substance: Registered office in the EU and at least one director resident in the EU; place of effective management in the EU.
Application procedure: Application to national competent authority; passporting through notification.
Government fees: Varies by member state — Verification required
Indicative timeline: MiCA sets assessment periods for NCAs; overall duration not reliably predictable
Limitations: Transitional (grandfathering) periods ended at the latest on 1 July 2026.
Legal basis: Regulation (EU) 2023/1114 (MiCA)