A Latvian payments and crypto firm just pulled off a regulatory first. Paybis announced this week that it has become the first company in Latvia to hold both a MiCA license — the European Union's crypto-assets regulatory framework — and a Payment Services Directive 2 (PSD2) license. The dual green light effectively lets the company offer regulated crypto-to-fiat services and stablecoin infrastructure across the bloc without needing separate approvals in each member state.
What the two licenses actually cover
MiCA, which came into full effect in 2025, governs the issuance, trading, and custody of crypto assets in the EU. Holding a MiCA license means Paybis can legally operate a crypto exchange, wallet, and custodian services across all 27 member states under a single passport. PSD2, on the other hand, is the EU's framework for payment services — think bank-like functions such as issuing IBAN accounts, processing SEPA transfers, and handling fiat currency transactions. Together, the two licenses bridge the gap between traditional finance and crypto, allowing Paybis to act as a one-stop shop for both euros and digital assets under a single regulatory umbrella.
Why being the "first in Latvia" matters
Latvia isn't usually the first country that comes to mind in EU crypto regulation. But the Baltic state's financial regulator, the Bank of Latvia, has been quietly building a reputation for thorough but efficient licensing. By granting both MiCA and PSD2 to a single entity, the regulator signals that it's open to integrated fintech models. For Paybis, the timing is interesting: the firm has been operating since 2014, mostly as a fiat-to-crypto on-ramp, but the dual license lets it pivot into stablecoin infrastructure — a market that's heating up as EU regulators clarify rules for e-money tokens and asset-referenced tokens under MiCA.
The stablecoin infrastructure angle
Stablecoins require more than just a crypto license. Issuers need to manage reserves, handle redemptions, and process payments in fiat. That's where PSD2 comes in. With a payment license, Paybis can offer IBAN accounts for stablecoin users, facilitate euro transfers, and potentially act as a settlement layer for stablecoin transactions. The company hasn't disclosed specific stablecoin partners or launch dates yet, but the regulatory foundation is now in place.
What comes next
Paybis now plans to roll out its regulated services across the EU, though no timeline has been announced. The company will have to navigate the practicalities of passporting its PSD2 license to other member states and ensuring compliance with each country's specific implementation of MiCA. For other crypto firms in Latvia and the broader region, this dual-licensing path could become a template — assuming the Bank of Latvia is willing to repeat the process.
