Our client, Paybis Europe, is the new EU-regulated entity of the major Paybis crypto exchange brand, having secured its crypto-asset services and payment services provider licences in Latvia.

Paybis is the third entity in Latvia to obtain a licence as per Markets in Crypto-Assets Regulation (MiCA), sending a clear signal that Latvia is indeed becoming the EU crypto hub.

Paybis brand has been known in the cryptospace for nearly a decade, and the group companies provide services also outside of the EU. The company has had a foothold in Latvia for years, including its founding team. For a while, the group concentrated its EU efforts in Poland, but upon Latvia becoming increasingly fintech-friendly, Paybis made a strategic decision to establish its headquarters in the Baltics.

Paybis now holds the following authorisations under MiCA:

  • providing custody and administration of crypto-assets on behalf of clients,
  • exchange of crypto-assets for funds,
  • exchange of crypto-assets for other crypto-assets,
  • execution of orders for crypto-assets on behalf of clients,
  • providing advice on crypto-assets,
  • providing transfer services of crypto-assets on behalf of clients.

Additionally, Paybis is authorised to provide certain payment services, as its business includes transactions with e-money tokens.

Upon successful passporting, Paybis will be able to provide its services all across the EEA.

Our team and involvement

Sorainen supported the client in the licencing process before Latvijas Banka. We assisted the client’s team with the development of licence documents across all areas, including business, MiCA documentation, AML, and DORA. Our team included project manager senior associate Agneta Rumpa, partner Ramona Miglāne, senior associates Edvīns Draba, Jevgēnija Ziņģe, Ieva Prūse, and assistant lawyers Annija Kuzma and Evija Velvele.

The process occurred at record speed, with the official process finished in less than one month’s time. This evidences the value of Latvijas Banka’s introduced pre-licensing process, which allowed the Paybis, Latvijas Banka and Sorainen teams to clarify all the material aspects of the business beforehand.

The project was a proof that when the public and private sector work in a collaborative manner, and when the licence applicant is highly professional, engages the needed external support, and communicates with the regulator in a professional manner, the results follow.