Licensing for Crypto, Fintech & Regulated Businesses

A VASP licence authorises crypto-asset services (exchange, custody, transfer) under FATF Recommendation 15-aligned national regimes. In the EU, VASP registrations have been replaced by the MiCA CASP authorisation under Regulation (EU) 2023/1114, with tiered initial capital of €50,000 to €150,000 by class. An EMI licence authorises the issuance of electronic money and the provision of payment services under Directive 2009/110/EC (EMD2) and PSD2, with minimum initial capital of €350,000. The regimes overlap for stablecoin issuers: MiCA Article 48(1) requires E-Money Token issuers to be authorised as a credit institution or an EMI. As of April 2026, a euro-denominated stablecoin issuer therefore needs both EMI authorisation and MiCA EMT compliance.

Yes, in every major jurisdiction. In the EU, MiCA (Regulation (EU) 2023/1114) requires CASP authorisation from a national competent authority, with EU-wide passporting; it has been fully applicable since 30 December 2024. In the United States, exchanges must register federally with FinCEN as a Money Services Business (MSB) and hold state Money Transmitter Licences (MTLs), with additional BitLicense obligations in New York and potential SEC or CFTC oversight depending on assets traded. In the United Kingdom, firms must register with the FCA under the Money Laundering Regulations 2017; a broader FSMA authorisation regime will commence on 25 October 2027 under The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, with the authorisation gateway open from 30 September 2026 to 28 February 2027.^[13]

As of April 2026, the lowest headline fees sit in El Salvador’s Digital Asset Service Provider regime, followed by Panama, BVI, Seychelles, Mauritius and St. Vincent (SVG), with total set-up costs typically ranging from USD 15,000 to USD 100,000 plus capital and ongoing compliance. “Cheapest” is usually the wrong question. Offshore licences frequently come with restricted banking access, counterparty trust issues and, in several cases, FATF grey-listing exposure, none of which are solved by a low application fee. Total cost of ownership (banking, external audits, substance, MLRO and compliance hires, ongoing supervisory fees) determines viability more accurately than the government fee schedule alone.

Timelines vary materially by vertical. MiCA CASP authorisation takes 3 to 6 months for well-prepared applications under the Article 63 statutory 25+40 working-day clock, 6 to 12 months where the regulator raises supplementary questions. EMI authorisation under EMD2 realistically takes 12 to 27 months in the EU and 9 to 16 months in the UK, including pre-application preparation; the FCA targets 3 months for complete applications, but end-to-end timelines run far longer. MGA gambling authorisation runs 4 to 6 months to a temporary licence and 6 to 12 months end-to-end. CySEC CIF authorisation typically takes 6 to 12 months. Offshore forex licences typically run 2 to 4 months in practitioner experience, though no regulator publishes an official service level for these timelines. Experienced applicants add 2 to 4 months of pre-application preparation before filing.

Generally, no. Issuing e-money without prior authorisation is prohibited under Article 10 EMD2. Operating an unlicensed gambling business is a criminal offence in the UK and Malta. Providing MiFID investment services without authorisation breaches Article 5 of MiFID II. Crypto is the partial exception: MiCA Article 143(3) grants transitional relief for CASPs that lawfully provided services under national law before 30 December 2024, allowing them to continue until 1 July 2026 or until the national regulator decides their CASP application. Member-state windows vary from 6 to 18 months under ESMA’s published list.^[11] Grandfathered firms cannot passport during the transition.

“Fintech licensing” is an umbrella term covering every non-bank financial authorisation: payment institutions and e-money institutions under PSD2 and EMD2, MiFID II investment firms, AIFMD fund managers, credit institutions (banking licences under CRD/CRR) and, increasingly, crypto.^[12] “Crypto licensing” specifically denotes VASP, CASP, DPT or MSB-for-crypto regimes. In the EU, this is the MiCA CASP authorisation under Regulation (EU) 2023/1114. In Singapore, it is DPT or DTSP authorisation under the Payment Services Act 2019. In the US, it is FinCEN MSB plus state MTLs. The regimes overlap where a crypto business needs fiat rails: a CASP typically cannot issue E-Money Tokens without an accompanying EMI authorisation (MiCA Article 48).

Typically yes. A crypto-native neobank offering spot trading, euro e-money wallets, equities brokerage and a euro stablecoin needs three to four authorisations: a MiCA CASP authorisation for trading and custody, an EMI authorisation under EMD2 for the wallet and for EMT issuance (MiCA Article 48), and a MiFID II investment firm authorisation for equities brokerage. Under the EU single market, each authorisation passports across all 27 member states from a single home regulator, which materially reduces marginal cost. US expansion, by contrast, requires state-by-state money transmitter licences in most states plus FinCEN MSB, with FINRA or SEC authorisation for securities and a CFTC footprint where derivatives apply.

Yes. Jagelski & Partners covers six licensing verticals: crypto and fintech (CASP, VASP, MiCA), gambling and iGaming, forex broker authorisation, EMI and payment institution licensing, fund and investment vehicle structuring, and prediction markets. Jurisdictional coverage is deepest in crypto (50 jurisdictions). Gambling coverage spans Europe, the Caribbean, Central America and Africa, and forex coverage spans Gibraltar, Cyprus, the UAE, Labuan and offshore Caribbean options. We work across all six verticals with the same five-stage mandate structure, coordinating with banking and formation in parallel where a single business needs multiple licences.