The combined crypto and payment licenses give Paybis passporting rights across the EU, raising the compliance bar for exchanges still operating under national registrations.
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Paybis obtained a MiCA crypto-asset service provider licence and a PSD2 payment institution licence from Latvijas Banka, the country’s central bank. The dual authorisation makes Paybis the first firm in Latvia to hold both licences simultaneously, a regulatory milestone that shifts the competitive landscape for crypto services across the European Union.
The MiCA licence allows Paybis to offer crypto exchange, custody, and trading services under a single EU-wide framework. Once fully implemented, MiCA passporting means a licence from one member state grants access to all 27 EU markets without needing separate national registrations. The PSD2 licence authorises Paybis to execute payment transactions, issue payment instruments, and operate payment accounts. Holding both licences under one roof lets Paybis bundle fiat payment rails with crypto execution, reducing reliance on third-party banking partners and lowering per-transaction costs.
Latvia’s central bank has been processing MiCA applications since the regulation’s transitional provisions began. Paybis is among the first wave of firms to convert from a legacy national registration to a full MiCA authorisation. The simultaneous PSD2 grant signals that the regulator views crypto-native payment flows as a distinct activity worthy of a dedicated licence, not merely an add-on to a crypto registration.
The combined licence package creates a structural advantage over EU competitors still operating under national transitional regimes. Many exchanges and brokers in Germany, France, and Spain continue to rely on local registrations that will expire as MiCA’s full application date approaches. Those firms must either secure a MiCA licence or cease offering services to EU clients. Paybis, by securing both licences early, can onboard institutional and retail clients across the bloc without the legal uncertainty that hangs over unlicensed peers.
The PSD2 component is particularly valuable. Crypto firms without a payment licence often depend on third-party banking-as-a-service providers, which adds counterparty risk and cost. Paybis can now settle client deposits and withdrawals directly, potentially offering faster settlement and lower fees. That operational edge matters in a market where spreads are compressing and execution quality drives volume.
The Paybis approval accelerates the clock for other EU crypto firms. MiCA’s transitional period ends on 30 December 2024 for most member states, though some have extended it into mid-2025. After that, unlicensed entities face enforcement actions. The fact that Latvia’s central bank is issuing dual licences suggests regulators are prepared to enforce the new regime strictly. Firms that have not yet filed a complete MiCA application risk being shut out of the EU market.
This dynamic is already visible in the market. Several exchanges have withdrawn from EU jurisdictions or restricted services, citing regulatory uncertainty. The Paybis licence raises the bar: a competitor that only holds a MiCA licence without payment permissions may find itself at a disadvantage when pitching to clients who want integrated fiat-crypto flows. The readthrough is that payment capability is becoming a differentiator in the post-MiCA landscape, not just a compliance checkbox.
For investors tracking the crypto infrastructure space, the licence also signals that national competent authorities are moving from policy design to operational approvals. That reduces the execution risk for publicly traded exchanges and brokers that have publicly committed to MiCA compliance. It also increases the pressure on firms that have been slow to adapt, potentially leading to consolidation or market-share shifts.
The next concrete catalyst is the publication of the first MiCA enforcement actions against unlicensed entities. When a major member state penalises a firm for operating without a MiCA licence, it will validate the compliance investment made by early movers like Paybis. Until then, the market will watch how quickly other central banks issue dual licences and whether any large exchange secures a similar package. The Paybis approval sets a precedent that competitors must now match or risk losing access to the EU’s single market.
Drafted by the AlphaScala research model and grounded in primary market data – live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.