EU crypto licences provide streamlined market access and robust legal protection for your business
As the cryptocurrency industry continues to expand, obtaining a proper crypto licence has become essential for businesses seeking to operate legally and build trust with clients and partners. At Meridien International, we assist you in navigating the regulatory frameworks of key European jurisdictions known for their progressive and secure crypto licensing regimes — Luxembourg, Lithuania, Estonia, and Malta.
Each jurisdiction offers distinct licences tailored to virtual asset service providers (VASPs), including exchanges, wallet providers, token issuers, and other blockchain-related businesses. Understanding the differences between these licences is crucial to selecting the right regulatory path for your company.
Luxembourg — Virtual Asset Service Provider (VASP) Licence
Luxembourg is one of Europe’s most stable and respected financial centres, regulated by the Commission de Surveillance du Secteur Financier (CSSF). Its VASP licence permits crypto companies to legally offer services such as trading, custody, exchange, and issuance of virtual assets.
- Scope: Covers a wide range of crypto activities including exchange operations, custody of assets, and trading platforms.
- Compliance Requirements: The CSSF mandates strong Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) procedures, comprehensive risk management frameworks, and ongoing regulatory reporting.
- Benefits: A licence from Luxembourg grants access to the entire European Union market and provides a high level of regulatory credibility, helping attract institutional clients and banking partners.
- Application Timeline: Due to detailed regulatory scrutiny, the process can take several months but ensures robust legal security and market trust.
Lithuania — Virtual Currency Exchange and Wallet Provider Licence
Lithuania has become a popular destination for crypto startups due to its favourable regulatory approach and fast licensing procedures overseen by the Bank of Lithuania.
- Scope: Licences cover virtual currency exchange services, wallet providers, and related crypto activities.
- Compliance: The Bank of Lithuania focuses on AML/CTF compliance, operational security, and transparency, requiring applicants to implement effective internal controls.
- Benefits: Lithuania’s licensing process is efficient, often completed in under three months, making it attractive for startups and growing businesses. Licensed entities benefit from access to the EU single market.
- Why Choose Lithuania: Cost-efficient licensing and a pragmatic regulator make Lithuania a preferred choice for fast market entry.
Estonia — Virtual Currency Service Provider Licence
Estonia was among the first countries to regulate crypto businesses and remains a leading fintech hub, with licensing governed by the Estonian Financial Intelligence Unit (FIU).
- Scope: Covers virtual currency exchanges, wallet services, and other virtual asset service providers.
- Compliance Requirements: Licence holders must adhere to strict AML/CFT policies, maintain transparent operations, and provide regular reports to the FIU.
- Benefits: Estonia offers a relatively quick licensing process combined with the advantage of its e-residency programme, facilitating easy company management remotely. The country’s supportive fintech ecosystem also helps crypto companies grow.
- Important Update: Licensing requirements have recently tightened to ensure higher capital reserves and stronger compliance controls, improving overall market integrity.
- Timeline: Licensing generally takes 2 to 4 months depending on the business model and documentation.
Malta — Virtual Financial Assets (VFA) Licence
Known as the “Blockchain Island,” Malta pioneered comprehensive crypto regulations under the oversight of the Malta Financial Services Authority (MFSA).
- Scope: The VFA licence covers a broad range of crypto-related services including exchange operations, wallet provision, token issuance, and investment services involving virtual financial assets.
- Compliance: Malta requires detailed business plans, robust AML/CTF policies, effective governance structures, and regular operational audits.
- Benefits: Malta’s framework offers clear legal certainty and allows licence holders to passport their services across the EU. It also boasts a well-established blockchain ecosystem supported by a government committed to innovation.
- Application Timeline: While more detailed and extensive than some jurisdictions, the process typically takes between 4 and 6 months.
- Why Malta: Ideal for businesses prioritising legal clarity and long-term regulatory confidence.
Securing a crypto licence is essential for launching a compliant and credible digital asset business. Meridien International provides full support throughout the licensing process—from planning and documentation to regulator engagement—ensuring you meet all legal requirements and can focus on growing your venture within a secure, regulated framework.
