When comparing licensing options for fintech businesses, two factors dominate: 1) how long it typically takes to obtain approval, and 2) what the all‑in (bulk) first‑year budget looks like.
This guide compares four regimes:
• UK EMI (FCA)
• EU EMI (e.g. Lithuania, Ireland, Germany)
• Canada MSB (FINTRAC)
• UAE VASP (VARA Dubai / ADGM)
Bulk cost refers to the total realistic budget credible operators spend in Year One — including advisory, compliance, tech, staffing, banking, and regulator fees — beyond the official application fee.
Side‑by‑Side: Time & Bulk Cost
| Regime | Regulator | Official Fee | Capital Minimum | Typical Timeline | Bulk Year‑One Budget |
| UK EMI | FCA (UK) | £5k small | €350k | 6–12 months | £750k–1.2m |
| EU EMI | Local NCAs (e.g. Lithuania, Ireland, BaFin) | €5k–10k [2] | €350k | 9–18 months | €500k–1m |
| Canada MSB | FINTRAC (Canada) | CAD $0 [3] | None (federal) | 6-12 months | USD $40k–100k+ |
| UAE VASP | VARA Dubai / ADGM | USD 15k–50k [4] | AED 1m+ (scope‑dependent) | 6-12 months | USD $200k–500k+ |
Notes: Timelines depend on application quality, jurisdiction workload, and scope of activity. Bulk budgets are realistic ranges for credible operators; high‑risk models (e.g., exchanges) trend toward the upper end.
Visual: Bulk Year‑One Budget
Visual: Typical Timelines
Jurisdiction Notes
UK EMI (FCA)
• Official fee: £5k [1].
• Capital: €350k (full EMI).
• Timeline: 6–12 months. FCA is documentation‑heavy (30+ policies/manuals).
• Bulk cost: £750k–1.2m for advisory, compliance staff, safeguarding, AML systems, audits and Capital.
EU EMI (e.g. Lithuania, Ireland, BaFin)
• Official fee: €5k–10k [2].
• Capital: €350k (full EMI).
• Timeline: 9–18 months, depending on NCA. Lithuania fastest, Ireland and BaFin often slower.
• Bulk cost: €500k–1m realistic Year One, lower than UK in some markets but slower to process.
• Notes: Passporting across EU remains a key advantage.
Canada MSB (FINTRAC)
• Official fee: CAD $0 (federal registration) [3].
• Capital: None federally (banks still expect financial resilience).
• Timeline: 6+ months (incorporation + FINTRAC review).
• Bulk cost: USD $40k–100k+, including incorporation, compliance officer, AML tools, training.
UAE VASP (VARA Dubai / ADGM)
• Official fee: USD 15k–50k depending on category [4].
• Capital: AED 1m+ for most categories, higher for exchanges.
• Timeline: 6+ months, depending on scope and regulator.
• Bulk cost: USD $200k–500k+ for a modest operation; higher for high‑risk models.
References
- [1] FCA – Authorisation and registration application fees. https://www.fca.org.uk/firms/authorisation/apply/fees
- [2] Central Bank of Lithuania – EMI licensing guidelines. https://www.lb.lt/en/sfi-financial-market-participants
- [3] FINTRAC – Register your money services business. https://fintrac-canafe.canada.ca/msb-esm/register-inscrire/reg-ins-eng
- [4] VARA – Licence applications & fee schedules. https://www.vara.ae/en/licenses-and-register/licence-applications/
