Market entry

The licence nobody needed

A marketplace was eighteen months into an EMI application it did not require. Re-scoped to an agent model, it went live in nine weeks.

The situation

The client held funds for sellers between order and payout. A law firm had told them that meant an electronic money institution licence, and eighteen months of capital, hiring and drafting had followed.

Nobody had asked whether the payout ever left a regulated partner's control.

What we changed

We mapped the flow of funds transaction by transaction. Money moved from buyer to a partner-held safeguarded account and out to the seller — the client never took possession.

That made an agent arrangement with an existing institution the correct perimeter, with a commercial agreement and a compliance framework instead of a licence.

The outcome

Live in nine weeks. Two point one million dollars of application, capital and headcount cost released, and a path to their own licence kept open for the volume tier that would justify it.

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