EMI license is the regulatory standard for modern payment companies in Europe. It is the framework under which our own EMI, UAB \"Pervesk\", operates, holding License No. 17 issued by the Bank of Lithuania. The biggest difference between an EMI and a traditional bank lies in how client funds are treated. Unlike traditional banks, EMIs are strictly prohibited from lending client funds to borrowers. Instead, they must adhere to a full safeguarding regime where 100% of client funds are segregated from the company's own funds. This creates a \"full-reserve\" system where client funds are legally ring-fenced and cannot be touched by creditors if the institution faces financial difficulties. For many of our clients, this offers a superior risk profile compared to the fractional reserve model of traditional banks, where deposits are used to fund loans. You can read more about why your funds are safe on our blog.
A credit institution, or a bank, license is primarily designed for the \"maturity transformation\" of money, which involves taking short-term deposits and turning them into long-term loans such as mortgages or business credit. Because banks lend out your money, they are required to hold massive capital reserves and adhere to strict liquidity ratios to prevent bank runs. While they offer deposit guarantee schemes for amounts typically up to €100,000, amounts exceeding that limit effectively become unsecured loans to the bank. At Bankera, we focus on transactional efficiency and payments for digital businesses, which is why we utilize the EMI infrastructure to ensure speed and 100% funds segregation.
| EMI | Bank |
| Primary Business Model | Focuses on transactional efficiency and payments for digital businesses. | Primarily designed for \"maturity transformation\": taking short-term deposits and turning them into long-term loans (mortgages, business credit). |
| Client Funds (Safeguarding) | Full safeguarding regime: 100% of client funds are legally segregated from the company's own funds. Operates on a \"full-reserve\" system. | Fractional reserve model: Client deposits are used to fund loans. Amounts exceeding the guarantee limit effectively become unsecured loans to the bank. |
| Lending of Client Funds | Strictly prohibited from lending client funds to borrowers. | Core function involves lending out client funds to borrowers. |
| Deposit Protection | Client funds are legally ring-fenced and cannot be touched by creditors in case of financial difficulties. | Offers deposit guarantee schemes for amounts typically up to €100,000. |
| Regulatory Framework | Regulated by national competent authorities (e.g., Bank of Lithuania) under EU law. | Regulated by national competent authorities (e.g., Bank of Lithuania) under EU law.
|
| EU Operations | Benefits from \"passporting,\" allowing services to be offered across the entire EU bloc with a single license. | Also benefits from \"passporting\" to operate across the EU. |
The regulation of cryptocurrency is shifting from local registrations to a unified European law. Until recently, crypto companies operated as Virtual Asset Service Providers, or VASPs. Looking forward, the incoming Markets in Crypto-Assets (MiCA) regulation is a game-changer. It mandates that electronic money tokens, which are stablecoins pegged to fiat currency, can essentially only be issued by credit institutions or EMIs. This positions the Bankera ecosystem uniquely. Because we already have deep integration with an EMI (Pervesk), we are future-proofed to issue and manage compliant Euro-backed stablecoins. For a deeper dive, read our analysis on how MiCA regulation makes crypto safer.
One of the greatest advantages of the European license is passporting. Once licensed in one country, an EMI or CASP (under MiCA) can offer services across the entire bloc. This allows Bankera to provide seamless IBANs and payments to clients across the EU without needing separate licenses in each member-state. In contrast, the United States lacks a unified fintech license. To operate nationally, a company often needs to acquire money transmitter licenses in virtually all different states, each with its own capital and reporting rules. This regulatory fragmentation is high-cost and inefficient, which is why currently we focus our resources on the unified European market where we can offer the most value.
Navigating these licenses is complex, but the Bankera ecosystem handles it for you. By combining the EMI license of UAB Pervesk for fiat rails and VASP/CASP compliance for crypto assets, we offer a banking alternative service that is secure, regulated, and built for the digital economy. Whether you are a corporate client needing high-limit IBANs or a fintech looking for a white-label solution, our regulatory infrastructure is designed to keep you compliant and your funds safe.
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