What is an e money license

An example of a hardware-based e-money product is Square. E-money is widely used throughout the EU, and prepaid debit cards are a popular form of storing and using e-money. They are a viable alternative for consumers who do not use banks to access and store their money. To ensure greater transparency and fairness, regulations have been placed on EMIs for the benefit of prepaid debit card users. These new rules include:.

These new regulations are designed to protect prepaid debit card users and further legitimize prepaid debit cards beyond your average gift card. At Hydrogen, we offer a configurable API platform and no-code apps with all the analytics, data storage, UI, and business logic you need to offer a physical or virtual prepaid debit card issuance app in Europe.

Our platform integrates with technology middleware companies that offer e-money licensing to our customers, alleviating the need for you to obtain it yourself! In , the Commission brought a revised version of this directive into force, now referred to as the EMD2. It contains the following definition of e-money:.

E-money, following this definition, is a stored value which generates a claim once it is issued. So, like all money in our centralized financial system , electronic money maintains its value through trust.

In the case of e-money, this trust is backed by stable, well-accepted assets. This means that all electronic money in circulation derives from fiat money. Electronic money, as represented by the digital values stored and transferred online, is an e-currency. Yet, those two terms cannot be used synonymously. The label e-currency also applies to cryptocurrencies, specific tokens like ICOs or virtual currencies like video game monetization currencies.

All these unique variations of digital currency have qualities and applications that differentiate them from e-money. Take cryptocurrencies , for example. Like electronic money, they have a worth which can change with the ebb and flow of the market. There are also goods and service providers who accept them as payment. In opposition to electronic money, cryptocurrencies are not governed by a centralized authority.

E-money institutions must comply with anti-money laundering, anti-fraud and know-your-customer regulations or face legal consequences. Cryptocurrencies, as a relatively new technology, are not yet widely regulated.

A decentralized complex peer system validates and processes crypto transactions. Furthermore, classic cryptocurrencies are not backed by fiat money.

A relatively new form of cryptocurrency — Stablecoins — throws a bridge to electronic money. Those stablecoins combine the solidity of fiat-mirroring e-money with the decentralized distribution of cryptocurrencies. Strictly speaking, virtual currencies are more stable in worth than many cryptocurrencies.

Private companies play the role of issuers here instead of governments. One example of this type of currency is the tokens used as in-game currencies in video game monetization. But while such virtual currencies cost money and for popular games have been the subject of speculation in the past , they are not e-money.

The regulation states that virtual currencies are:. Virtual currencies are not backed by fiat money and not held to the same regulatory standards. They can only act as a means of payment within a specific environment, like a game or an online shop.

CRS Common Reporting Standard was implemented in and national authorities are obliged to automatically exchange financial information on account balances of their customers to foreign tax authorities. That means the registration process is less expensive and simpler, but they cannot provide their services to other EEA member states. Thus, they pass through a more stringent licensing process and can provide their services in the EEA, for example, through authorized agents in other member states.

One of the main benefits of obtaining a British e-Money license was that it had passporting rights. That meant it had free access to the EU market and allowed you to establish your services in other EU countries without needing to apply for further licenses. Right now, the UK is on a transition period until December 31, , where it still has passporting rights.

Law and Trust International proposes obtaining an e-money service license in Singapore. It is important to note that the Singaporean authorities make revisions to their regulations in respective of e-money issuers, MAS have yet to publish a timeline for the implementation of these changes.

However, it is important that your business prepare and attend the initial pre-engagement meeting with MAS. We provide complete support throughout your application to the MAS. The documentation processes from the project could be used as a basis for your application to the MAS should this is required, in order to reduce the cost of project. A description of the structural organization, including the intended use of branches, agents, natural or legal persons through which the electronic money institution intends to distribute or redeem electronic money or other entities to which activities will be outsourced, and a description of participation in payment systems;.

The identity of directors, including the persons responsible for the management of the electronic money issuance activities of the electronic money institution as well as evidence that they are of good repute and meet the requirements set forth by the legislation;. On receiving the decisions by the regulator, the MAS representatives will review all the required components of the project to ensure that it has been fully completed and that you are confident in your on-going regulatory obligations and compliance framework.

Usually, it takes from 4 to 6 weeks. We give a high specter of opportunities for every interested person. Law and Trust gives:. After the process of obtaining the necessary license, we would deliver it personally or via courier services.

If you are interested in getting your EMI license in Singapore, please contact our lawyers for free consultation. Search form. RU EN.