Latvia Hands Paybis Europe Dual MiCA and Payments Licence in EU First

Latvia's central bank has authorised Paybis Europe to operate as both a crypto-asset service provider and a payment institution, the first time a single Latvian firm has secured the two permissions in tandem. Latvijas Banka confirmed the decision on 12 May 2026, positioning the country as one of the more active jurisdictions implementing the EU's Markets in Crypto-Assets Regulation (MiCA).

The dual licence allows Paybis Europe to custody crypto-assets, execute exchange orders between crypto and fiat, advise clients, transfer assets on their behalf, and process traditional payment transfers, all from a single regulated entity. It is the third MiCA authorisation granted in Latvia and signals that the country's regulator is willing to combine crypto and payments oversight in one approval cycle, an arrangement most EU regulators have so far separated.

What does the dual licence actually permit?

Under the crypto-asset authorisation, Paybis Europe can provide custody and administration of crypto-assets, exchange crypto for fiat or other crypto, execute client orders, offer advisory services, and operate transfer services. The payment institution licence, governed by the EU's revised Payment Services Directive, allows the firm to execute payments and route transfers to payment accounts.

The combined scope is operationally significant. Most crypto-native firms in the EU have historically partnered with external payment institutions to handle fiat on and off-ramps, adding cost and counterparty risk. Holding both licences in-house removes that dependency and brings the full transaction chain, from euro deposit to crypto settlement and back, under one regulated roof.

Why is Latvia attracting MiCA applicants?

Latvijas Banka issued eight fintech licences in 2025 and has already approved seven so far in 2026, an accelerating cadence that places the Baltic state among the more active EU regulators by approval volume relative to market size. The central bank has actively courted applicants through pre-licensing consultations and published licensing guides, an approach contrasting with the slower, more documentation-heavy processes reported in larger jurisdictions such as Germany and France.

For context, MiCA fully came into force on 30 December 2024, creating a single rulebook for crypto-asset issuers and service providers across the 27-member bloc. Once authorised in one member state, a firm can passport services across the EU by notifying host regulators of cross-border activity. That mechanism has turned national licensing decisions into competitive bids for fintech headquarters, and smaller jurisdictions including Latvia, Malta, and Ireland have moved quickly to capture early applicants.

How does Paybis fit into the broader crypto landscape?

Paybis operates a fiat-to-crypto brokerage that has been active since 2014, serving retail customers across more than 180 countries. The Latvian entity is its EU-regulated arm, and the dual licence consolidates a regulatory footprint that includes a registration with the United States Financial Crimes Enforcement Network as a money services business.

Securing MiCA authorisation alongside a payments licence positions Paybis to compete more directly with larger EU-regulated exchanges such as Bitstamp, Kraken, and Coinbase, all of which have pursued or obtained MiCA permissions through various member states. The competitive question is whether smaller licensed firms can convert regulatory parity into market share, or whether liquidity and brand will continue to favour incumbents.

Why This Matters to FinanceX Readers

The Paybis approval is a useful data point on where MiCA implementation is heading. Latvia is demonstrating that smaller EU regulators can move faster than their larger peers and bundle crypto and payments authorisations into a single review, which lowers the operational overhead for applicants.

For investors tracking listed and private crypto-infrastructure firms, the jurisdiction of authorisation now matters as much as the licence itself, faster-moving regulators are likely to attract a disproportionate share of new EU entities.

For finance professionals advising clients on payments and digital asset strategy, dual-licensed entities reduce counterparty layers and may reshape how fiat-to-crypto flows are structured across the bloc through 2026 and beyond.

By Koen Vanderhoydonk - FinanceX Magazine