Paybis, a cryptocurrency exchange, recently secured both a MiCA crypto license and a PSD2 payment institution license from Latvia's central bank. This makes Paybis the first entity in Latvia to hold these two regulatory approvals simultaneously, setting a new precedent for digital asset firms operating in the region.
The Markets in Crypto-Assets (MiCA) regulation represents a unified framework for crypto-assets across the European Union. Its implementation aims to provide legal certainty for crypto companies and protect consumers by standardizing rules for issuing, trading, and safeguarding various digital assets. Gaining this license allows Paybis to offer its crypto services across all EU member states under a single regulatory umbrella.
The Revised Payment Services Directive (PSD2) governs electronic payment services within the EU. A PSD2 license enables Paybis to process a broader range of payment transactions, including fiat-to-crypto and crypto-to-fiat conversions, with enhanced security and consumer protection measures. This dual licensing positions Paybis to integrate more deeply into the traditional financial system while maintaining its crypto offerings.
Simultaneous acquisition of both licenses is critical for Paybis's strategic expansion plans across the European market. It shows a commitment to regulatory compliance and building trust in a developing sector. For Latvia, the decision by its central bank to issue these combined licenses positions the country as a potential hub for regulated crypto and fintech operations within the EU.
The company intends to use these new approvals to broaden its service offerings and reach new customers throughout the European Union.