The Fintech-friendly nation of Lithuania plans to set a standard with its technological innovations, which will hopefully gain general adoption worldwide.
Top Position in the EU
As countries constantly strive to become developmental hubs for Fintech and blockchain technology, Lithuania has been setting the standard year after year for the fastest issuing system of both Payment Institution (PI) and e-money EMI licenses in the entire EU.
Currently, Lithuania aims to beat their present record once again this year. The Baltic nation operates differently from other countries as PI and EMI licenses require just three months to be approved. To receive the same kind of licenses in other countries throughout the EU the waiting time can take over a year.
The Bank of Lithuania will introduce into the Fintech industry a system which will enable companies to submit remotely for these highly sought-after licenses. The “Ragtech” regulatory technology tool will simplify the process of applying and managing applications for EMI and PI licenses.
This efficient solution makes the Bank of Lithuania (already considered the fastest license issuer) even more accessible for global Fintech innovators.
The Bank of Lithuania announced in a press release that starting from July 2, 2018, “companies looking to access the 512-million strong EU market will be able to apply directly online for a variety of financial licenses valid across the SEPA area. These include e-money institution (EMI) and payments institution (PI) licenses.”
Lithuania will have the advantage of being backed up by the most supportive Fintech regulators and the ease of being able to remotely set up their business.
While most are only interest in the monetary aspect and forget the real reason behind this incentive, one mustn’t overlook that it is also driven by the desire to make Lithuania a global Fintech hub. The country has been making substantial efforts to create a community that is truly borderless, thus simulating the industry they aim to help develop.
In just the preceding two years, the Bank of Lithuania has carried out its promises by constantly founding the fastest Fintech licensing system in the EU with a ground-breaking regulatory system that nurtures global advance. It is quite possible that considering the ascending direction of blockchain and Fintech, there will be more countries that will bring more innovations to the table.