The most expensive fintech mistake is building a product and then discovering that one of its functions needs a license you cannot get in reasonable time. To avoid it, build a license map before the first line of code: which functions are regulated, by whom, in which countries and in what order to obtain permissions. It is the core of our financial and crypto licenses service.
In short: break the product into functions, tie each to a type of regulation, choose markets and decide what you license yourself and what partners cover. The result is a roadmap with budget and dependencies.
Which product functions are regulated
| Product function | Type of regulation | Examples |
|---|---|---|
| Accepting and sending payments | Payment institution | Acquiring, transfers, payment links |
| Stored balances, cards | E-money (EMI) | Wallets, neobanks |
| Investments and brokerage | Investment firm | Securities trading, portfolio management |
| Loans and instalments | Credit license or registration | BNPL, microloans |
| Crypto exchange and custody | MiCA CASP or VASP | Exchanges, custody, crypto wallets |
Step-by-step plan
- Describe user scenarios. What clients do in the product: top up, pay, save, invest, borrow.
- Draw money and asset flows. Where funds and assets sit at each step and who controls them.
- Define markets. Where clients and the company are located decides whose rules apply.
- Match functions to permissions. For each function: the permission, regulator, capital and rough timeline.
- Decide "in-house or partner". Some functions are cheaper to cover via a licensed partner at launch.
- Build the roadmap. Sequence, budget, dependencies and decision points.
Common mistakes
- Starting with the "most popular" license without checking it covers every function.
- Forgetting the clients' country: a license in one country does not always allow serving residents of another.
- Ignoring that changes of owners or product model after licensing require regulator approval.
- Building on a single payment partner with no backup route.
What you get
A license map is a short document both founders and investors understand: the list of functions and their regulatory status, recommended company structure, countries, budget and timelines. It makes conversations with lawyers, banks and investors much easier. If you need a company and account first, we add company registration and business accounts.
Frequently asked questions
How long does a license map take?
Usually 1–3 weeks depending on product complexity and the number of markets. That is faster and cheaper than rebuilding the product after a regulator says no.
Do you guarantee the license?
No. The regulator always decides. We help you pick a realistic route and prepare in a way that lowers the risk of refusal.
Can I launch before the license is granted?
Often yes — through licensed partners, as an agent or technology provider. The license map shows exactly where that is allowed.
Building a fintech product? Send a request on the financial and crypto licenses page and we will build your license map with specialist lawyers before you spend the development budget.
This article is for information only and is not legal advice.