Finance Magnates learned on Friday that payments provider Simplex has received an electronic money institution (EMI) license from the Bank of Lithuania.
The Israeli technology firm was previously registered with the Lithuanian regulator under a payment institution license.
But that license largely limited Simplex to facilitating payments. Now the payments company, which is particularly active in the cryptocurrency space, will be able to do a lot more.
Most notably, an EMI license allows companies to open an electronic money account with the licensee. That means Simplex will actually be able to provide accounts to its clients.
Simplex customers will also be able to pay for goods and services in a secure payment environment. In addition to payment services, the company will offer electronic fraud prevention services – allowing its customers to verify each payment transaction for possible fraud.
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One of many
The Israeli payments company was guided through the licensing process by WALLESS, a legal firm based in Vilnius.
“Congratulations to our long-standing client Simplex on having received an e-money license from the Bank of Lithuania,” said WALLESS in a post on its LinkedIn page.
“Simplex was one of the first fintech companies to set up in Lithuania and obtained its payment institution license in 2017. [An EMI] license allows [the company] to broaden its product offering.”
Despite being one of the smaller countries in the European Union, Lithuania is fast becoming a hot-spot for financial technology firms.
This is particularly true in the payments field. Aside from the UK, more payments companies are registered as EMIs in Lithuania than anywhere else in the EU.