Built on Relationships, Developed on Trust
Fintech & Financial Services
MK Fintech Partners provides specialised legal services for the fintech, payments and financial services industry, with a focus on licensing, regulatory compliance, and blockchain-based solutions.
Malta's Fintech Space
Discovering the Benefits of Malta: The Rise of a Fintech Hub
Malta is becoming a hub for innovative fintech firms. This includes Insurtech and Regtech, as well as industry technology specialists who are essential to the growth of this industry. The island ranks 5th out of the 27 EU member states in the Digital Economy and Society Index (DESI) 2020. Furthermore, Malta is the 3rd most favoured EU jurisdiction for EU licence applicants. The Malta Financial Services Authority (MFSA), the local regulator, has established a successful fintech sandbox, making Malta an attractive destination for fintech companies.
The island’s small size and English-speaking population make it an ideal testing ground for new technologies and ventures. Additionally, Malta boasts a talented pool of tech and finance professionals, offering a streamlined process for bringing in overseas talent. As a member of the EU, Malta allows for easy passporting of services and activities. It also offers favourable tax rates, with effectively 5% tax for trading companies and 0% for holding companies for non-resident shareholders.
Payment Institution Licence vs Electronic Money Institution Licence
Know the Key Distinctions & Licensing Requirements in Malta
Payment institutions (PIs) and Electronic Money Institutions (EMIs) are governed by the 1994 Financial Institutions Act (FIA) and licensed by the MFSA. However, they differ in the kinds of activities they are permitted to undertake. Their primary difference being that PIs are permitted to render payment services (as defined in the Second Schedule to the FIA, while EMIs issue electronic money (i.e., electronically stored monetary value, e.g., prepaid cards, electronic wallets) and may render payment services if they wish to do so. Each type of licence covers activities such as minimum share capital requirements and application fees. These are detailed below.
Passporting Rights
one license, for all the eu
The Financial’s Institutions Act (FIA) incorporates the terms of the European Union’s Payment Services Directive and Electronic Money Directive. Thus, licensed PIs and EMIs are free to passport their services to other EU/EEA countries through a simple notification procedure between competent authorities.
Our Achievements in Fintech
our 100% approval track record
- MK Fintech has recently received regulatory approval for an EMI licence application for the 7th largest digital gaming provider in the world!
- MK Fintech has advised a reputable international company who is in the business of digitisation of payments, on how to create an in-house Corporate Management platform for its public company to manage numerous shareholders and create shareholders’ wallets to hold their digital shares and receive dividends (with ‘open banking’ via an API for this purpose).
How We Can Help You
applying our legal expertise to your ambitions
- Incorporating a Maltese company
- Draft a statement of intent and legal opinion
- Business Plan guidance
- Preparation and submission of all license application documents
- Vetting required policies and procedures (such as AML, Risk, BCC, Information Security)
- Liaising with the MFSA and accompanying you to all preliminary meetings
- Filing all fit and proper tests for all key persons for the MFSA’s approval
- Drafting MFSA response letters as may be required
- Referrals to competent persons in our network to fill any needed roles (MLRO, compliance officer, systems auditor, etc.)
- Any other legal support required throughout the license application process
