Dtcpay, a Singapore-based fintech firm, has received approval for its Electronic Money Institution (EMI) license from the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.

This license allows the payment solutions provider to offer regulated financial services across the European Economic Area (EEA).

With the EMI license, dtcpay can issue electronic money, facilitate payment transactions, and conduct cross-border transfers within the EEA.

The company has established Luxembourg as its European headquarters in its effort to expand into the European market.

dtcpay holds existing licenses in Singapore and other jurisdictions. The company plans to further integrate stablecoin solutions into its payment infrastructure.

It is also exploring the possibility of obtaining a Crypto-Asset Service Provider (CASP) license under the EU’s Markets in Crypto-Assets (MiCA) framework.

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🔗 Source: dtcpay

🧠 Food for thought

1️⃣ Luxembourg’s premium positioning comes with higher regulatory costs

dtcpay’s choice of Luxembourg reflects a strategic trade-off between regulatory credibility and operational expenses in the European EMI licensing landscape.

Luxembourg ranks among the top five EU jurisdictions for EMI licenses but is known for having “higher licensing costs” compared to alternatives like Lithuania or Malta1.

While Lithuania offers EMI licensing in just 3-6 months with application fees as low as €1,463, Luxembourg’s positioning attracts companies prioritizing regulatory reputation over cost efficiency2.

This cost premium appears justified for companies like dtcpay that need to establish credibility with enterprise clients and navigate complex stablecoin regulations.

Luxembourg’s selection also positions dtcpay to benefit from the country’s established financial infrastructure and regulatory expertise, which becomes crucial as the company pursues additional licenses under the EU’s MiCA framework.

2️⃣ Stablecoin companies face mounting regulatory pressure in Europe

dtcpay’s EMI license timing coincides with growing European concerns about USD-dominated stablecoins.

The ECB recently warned that US dollar-based stablecoins account for 99% of the total stablecoin market capitalization, while euro-denominated stablecoins remain marginal3.

European regulators worry this dominance could “weaken the ECB’s control over monetary conditions” and lead to higher financing costs for European businesses4.

This regulatory environment creates both opportunity and pressure for companies like dtcpay that focus on stablecoin payment infrastructure.

The timing suggests dtcpay is positioning itself to capture demand from European businesses seeking compliant stablecoin solutions, particularly as the ECB advocates for strengthening euro-based digital payment alternatives.

Recent dtcpay developments

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