Paybis Secures MiCA and PSD2 Licences Ahead of EU Crypto Expansion

Cryptocurrency exchange Paybis has acquired two licences, including one for crypto-asset services under the European Union's (EU) Markets in Crypto-Assets Regulation (MiCA) and another for payment institution operations under Payment Services Directive 2 (PSD2). The licences were issued to SIA Paybis Europe, which is the company's EU entity. This regulatory achievement has established Paybis as a fully regulated, dual-licensed crypto services provider operating across 27 members of the EU and the broader EEA. The licences were issued by the Supervision Committee of Latvijas Banka, which is the central bank of Latvia, on May 12.

Licences Cover Custody, Transfers, and Crypto Exchange Services

Latvijas Banka stated that the MiCA licence encompasses custody and administration of crypto assets for clients, exchange of crypto assets for funds or other crypto assets, execution of orders, transfer services, and crypto asset advisory. The central bank also added that the PSD2 payment institution licence enables Paybis's EU entity to execute payments and make transfers to payment accounts. 

For businesses across Europe, Paybis' regulated infrastructure now means that Stablecoin payouts are run through a regulated payment platform, the exchange can now provide embedded digital asset payment services, and conduct electronic money token (EMT) transactions. Finally, all individual and business user funds are held separately from Paybis' funds. 

As per a report by Finextra, Paybis Co-Founder and CEO, Innokenty Isers, stated that “We chose Latvia deliberately, thanks to the thoughtful regulatory framework built by the Bank of Latvia (Latvijas Banka) and the Latvian authorities. Our ambition is to become a global powerhouse for regulated crypto and payments - making secure access to crypto the default for people and businesses everywhere. This is the beginning - we're just getting started."

Konstantins Vasilenko, co-founder and chief business development officer of Paybis, told Cointelegraph, “This is where the combination of MiCA CASP authorisation and PSD2 PI licensing is particularly important because it allows us to connect crypto asset services with regulated payment rails." 

MiCA licences have gradually come to the forefront of the EU's regulatory infrastructure. In March, Circle urged UK lawmakers to develop a crypto regulatory framework by combining elements from the European Union's Markets in Crypto-Assets (MiCA) regulation and the US's stablecoin rules. Speaking before a House of Lords committee, Circle's policy chief Dante Disparte said the UK has a unique opportunity to create a distinct system that balances regulatory clarity with innovation.