{
 "dataset": "Protegra Licensing Atlas",
 "licence": "CC BY 4.0",
 "url": "https://protegra.io/licensing/data/",
 "generated": "2026-09-24",
 "count": 46,
 "activities": [
  {
   "id": "crypto-custody",
   "name": "Custody and administration of crypto-assets",
   "definition": "Safekeeping or controlling crypto-assets, or the means of access to them such as private keys, on behalf of clients.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(a) and 3(1)(17)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica",
    "vasp"
   ],
   "answer": "Safekeeping or controlling crypto-assets or private keys on behalf of clients requires a crypto-asset service provider (CASP) authorisation in the EU under MiCA Article 3(1)(16)(a) and 3(1)(17). Authorised CASPs benefit from EU-wide passporting across the EEA. Outside the European Union, this activity falls under virtual asset service provider (VASP) regimes or national trust and custody frameworks.",
   "faq": [
    {
     "q": "Does providing non-custodial wallet software require a custody licence?",
     "a": "Purely non-custodial or self-hosted software providers that never hold private keys or exercise control over user funds generally do not require a custody licence. However, if the developer retains co-signing ability, private keys or secondary recovery authority, financial regulators categorise the service as regulated custody."
    },
    {
     "q": "Can a crypto custodian hold client tokens in omnibus accounts?",
     "a": "Yes, custodians may pool assets in omnibus wallets under MiCA, provided they maintain separate accounting ledgers that guarantee each client's entitlements. Regulatory standards require strict segregation of proprietary assets from client funds and continuous reconciliation to safeguard client holdings in the event of custodian insolvency."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crypto-trading-platform",
   "name": "Operating a crypto-asset trading platform",
   "definition": "Managing a multilateral system that brings together buying and selling interests in crypto-assets so that contracts are concluded.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(b) and 3(1)(18)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica",
    "vasp"
   ],
   "answer": "Operating a multilateral system bringing together third-party buying and selling interests in crypto-assets requires a crypto-asset service provider (CASP) authorisation in the EU under MiCA Article 3(1)(16)(b) and 3(1)(18). Authorised platforms can passport across all EU member states. Outside the EU, operators must obtain a virtual asset service provider (VASP) licence or multilateral trading facility authorisation.",
   "faq": [
    {
     "q": "Can a crypto trading platform deal against its own proprietary capital?",
     "a": "Under MiCA, operators of crypto-asset trading platforms are prohibited from dealing on own account on the platforms they operate. Platforms must maintain transparent non-discretionary order-matching rules and transparent fee structures, ensuring fair execution without proprietary trading conflicts that could disadvantage external market participants."
    },
    {
     "q": "What market surveillance systems are mandatory for crypto trading platforms?",
     "a": "Regulated platforms must operate effective software systems to detect and prevent potential market abuse, insider dealing and transaction manipulation. Compliance frameworks require suspicious transaction and order reporting to competent authorities, robust distributed-ledger analytics, transparent trading rulebooks and continuous monitoring of executed trades and orders."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crypto-fiat-exchange",
   "name": "Exchange of crypto-assets for funds",
   "definition": "Buying or selling crypto-assets against fiat money using the provider's own capital.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(c) and 3(1)(19)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica",
    "vasp"
   ],
   "answer": "Buying or selling crypto-assets against official currency using proprietary capital requires a crypto-asset service provider (CASP) authorisation in the European Union under MiCA Article 3(1)(16)(c) and 3(1)(19). A CASP licence allows passporting across the EEA. Outside the EU, this on-and-off-ramp service requires a virtual asset service provider (VASP) licence or registration with national anti-money-laundering authorities.",
   "faq": [
    {
     "q": "Does a crypto-to-fiat exchange need a separate payment institution licence?",
     "a": "A CASP exchanging crypto for fiat does not automatically require a payment institution licence if it merely receives and pays funds for its own trades. However, holding customer fiat balances long term or providing standalone remittance services triggers payment services regulation under PSD2 or equivalent national regimes."
    },
    {
     "q": "What anti-money-laundering rules apply to fiat-to-crypto exchanges?",
     "a": "Operators must enforce customer due diligence, source of funds verification, transaction monitoring and travel rule compliance. Regulators require exchanges to verify user identity, screen counterparties against sanctions lists, and retain audit logs to prevent illicit finance when converting sovereign currencies into distributed-ledger tokens."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crypto-crypto-exchange",
   "name": "Exchange of crypto-assets for other crypto-assets",
   "definition": "Concluding contracts with clients to swap one crypto-asset for another using the provider's own capital.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(d) and 3(1)(20)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica",
    "vasp"
   ],
   "answer": "Exchanging one crypto-asset for another against proprietary capital requires a crypto-asset service provider (CASP) authorisation in the EU under MiCA Article 3(1)(16)(d) and 3(1)(20). In the EEA, authorised providers can passport their swap services across borders. In jurisdictions outside Europe, this dealer activity is regulated under virtual asset service provider (VASP) or money services business frameworks.",
   "faq": [
    {
     "q": "Does an automated market maker or decentralised exchange protocol require a licence?",
     "a": "Purely decentralised protocols with no identifiable operator or intermediary typically fall outside traditional licensing frameworks. However, if a centralised entity, foundation or development team deploys front ends, maintains administrative keys, routes transactions or extracts fees, regulators treat the enterprise as an exchange intermediary requiring authorisation."
    },
    {
     "q": "Are crypto-to-crypto swaps subject to the FATF travel rule?",
     "a": "Yes, the FATF travel rule applies to crypto-to-crypto transfers and exchanges executed by regulated providers. Intermediaries must obtain, hold, and securely transmit originator and beneficiary information alongside qualifying token transfers, ensuring traceability between counterparty institutions across different blockchain networks and private wallet endpoints."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crypto-order-execution",
   "name": "Execution of orders for crypto-assets on behalf of clients",
   "definition": "Concluding agreements to buy or sell crypto-assets on behalf of clients, including subscribing to offers.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(e) and 3(1)(21)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica",
    "vasp"
   ],
   "answer": "Concluding agreements to buy or sell crypto-assets on behalf of clients requires a crypto-asset service provider (CASP) authorisation in the EU under MiCA Article 3(1)(16)(e) and 3(1)(21). Authorised firms can passport services throughout the EEA. Non-EU jurisdictions regulate client order execution under virtual asset service provider (VASP) regimes or national broker-dealer and securities laws.",
   "faq": [
    {
     "q": "What best execution obligations apply to crypto order execution?",
     "a": "Under MiCA, authorised brokers must take all necessary steps to obtain the best possible result for clients, considering price, costs, speed, likelihood of execution and settlement size. Firms must establish and implement an order execution policy and disclose the venues where client orders are regularly routed."
    },
    {
     "q": "Can a firm execute client crypto orders against its own inventory?",
     "a": "Firms executing orders on behalf of clients must manage structural conflicts of interest. While internalisation is permitted in certain jurisdictions under strict disclosure, MiCA mandates that client orders be handled fairly, without front-running, prioritising client interests over the broker's proprietary inventory or affiliate trading desks."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crypto-placing",
   "name": "Placing of crypto-assets",
   "definition": "Marketing crypto-assets to purchasers on behalf of or for the account of the offeror or a related party.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(f) and 3(1)(22)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica"
   ],
   "answer": "Marketing crypto-assets to purchasers on behalf of an offeror requires a crypto-asset service provider (CASP) authorisation under MiCA Article 3(1)(16)(f) and Article 3(1)(22). Authorised intermediaries can market and distribute token issuances across the EU single market via passporting, subject to white paper publication and mandatory conflict-of-interest rules regarding allocation and compensation.",
   "faq": [
    {
     "q": "How does crypto placing differ from operating an initial exchange offering?",
     "a": "Placing involves marketing and distributing tokens directly to buyers on behalf of an issuer without necessarily hosting secondary trading. Operating an exchange offering combines placing with immediate listing on a multilateral trading platform, which requires additional platform permissions alongside placement capabilities under MiCA."
    },
    {
     "q": "Are token launchpads required to hold a CASP licence for placing?",
     "a": "Yes, launchpads that market newly issued tokens to investors on behalf of project teams perform regulated placing. If the platform facilitates token purchases, collects funds or receives commissions from the issuer, it must secure CASP authorisation under MiCA before targeting EU purchasers."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crypto-order-reception-transmission",
   "name": "Reception and transmission of orders for crypto-assets",
   "definition": "Receiving a client's order to buy or sell crypto-assets and passing it to a third party for execution.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(g) and 3(1)(23)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica"
   ],
   "answer": "Receiving a client's order to purchase or sell crypto-assets and transmitting it to a third party for execution requires a crypto-asset service provider (CASP) authorisation under MiCA Article 3(1)(16)(g) and 3(1)(23). Authorised intermediaries can passport across the European Economic Area, providing introducing broker services without handling client custody or settling trades themselves.",
   "faq": [
    {
     "q": "Can an introducing broker receive payments or commissions from execution venues?",
     "a": "Under MiCA, firms receiving and transmitting orders must ensure that third-party inducements, rebates or commissions do not compromise their duty to act in the best interests of clients. Any fees or benefits received from execution venues must be clearly disclosed to the customer prior to order placement."
    },
    {
     "q": "Does an order routing application require a CASP licence if it is non-custodial?",
     "a": "Yes, if the application actively routes or transmits client orders to specific counterparties or trading venues as a commercial service, it falls under reception and transmission rules. Pure technology providers that supply routing software without acting as intermediaries or touching order flows may remain exempt."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crypto-advice",
   "name": "Advice on crypto-assets",
   "definition": "Giving personalised recommendations to a client about transactions in crypto-assets or the use of crypto-asset services.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(h) and 3(1)(24)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica"
   ],
   "answer": "Providing personalised recommendations to a client regarding crypto-asset transactions or services requires a crypto-asset service provider (CASP) authorisation under MiCA Article 3(1)(16)(h) and 3(1)(24). EU authorisation grants passporting rights across all member states. Firms must perform suitability assessments, evaluate client risk tolerance and disclose conflicts of interest before delivering recommendations.",
   "faq": [
    {
     "q": "Does publishing general market research or newsletters count as regulated crypto advice?",
     "a": "No, impersonal publications, educational content or general market commentary directed to the public do not constitute personalised advice. Advice regulation is triggered when a recommendation is tailored to the personal circumstances, financial position or specific investment objectives of an individual client."
    },
    {
     "q": "What suitability assessments must an authorised crypto adviser conduct?",
     "a": "Advisers must assess the client's knowledge, experience in crypto-assets, financial situation, ability to bear losses and risk tolerance. If a crypto-asset is deemed unsuitable, or if the client fails to provide adequate information, the firm must refrain from recommending the transaction."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crypto-portfolio-management",
   "name": "Portfolio management of crypto-assets",
   "definition": "Managing portfolios that include crypto-assets on a discretionary, client-by-client basis under a mandate.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(i) and 3(1)(25)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica"
   ],
   "answer": "Managing client portfolios containing crypto-assets on a discretionary, client-by-client basis under mandate requires a crypto-asset service provider (CASP) authorisation under MiCA Article 3(1)(16)(i) and 3(1)(25). Authorised managers can passport across the European Economic Area. The regime mandates periodic client valuation statements, strict investment limits, suitability evaluations and continuous risk management.",
   "faq": [
    {
     "q": "Can an investment fund manager handle crypto portfolios under an existing AIFM licence?",
     "a": "Alternative investment fund managers may manage funds investing in crypto-assets within the scope of their AIFMD authorisation, subject to national investment rules. However, managing individual segregated discretionary client accounts containing crypto-assets requires specific CASP portfolio management authorisation under MiCA."
    },
    {
     "q": "What reporting disclosures must crypto portfolio managers provide to clients?",
     "a": "Managers must supply regular periodic statements detailing portfolio performance, asset valuations, trading costs and any depreciation exceeding agreed thresholds. Reports must reflect fair market valuations and highlight the volatility and liquidity risks associated with the underlying distributed-ledger holdings."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crypto-transfer",
   "name": "Transfer services for crypto-assets",
   "definition": "Moving crypto-assets on behalf of a client from one distributed-ledger address or account to another.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Art. 3(1)(16)(j) and 3(1)(26)",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "casp-mica",
    "vasp"
   ],
   "answer": "Moving crypto-assets on behalf of a client between distributed-ledger addresses or accounts requires a crypto-asset service provider (CASP) authorisation in the EU under MiCA Article 3(1)(16)(j) and 3(1)(26). European authorisation allows seamless passporting across the EEA. Outside the EU, transfer services are regulated under virtual asset service provider (VASP) frameworks implementing FATF travel rule standards.",
   "faq": [
    {
     "q": "What travel rule obligations apply when transferring crypto-assets?",
     "a": "Transfer service providers must obtain, verify and transmit originator and beneficiary information to the counterparty institution alongside each transaction. Under EU rules implementing FATF standards, these requirements apply to all crypto transfers involving regulated intermediaries, regardless of transaction value."
    },
    {
     "q": "Does mining or blockchain transaction validation constitute a regulated crypto transfer service?",
     "a": "No, proof-of-work miners, proof-of-stake validators and node operators validating blockchain consensus do not act as intermediaries moving assets on behalf of clients. They provide decentralised computational infrastructure rather than customer-facing custodial transfer services, placing them outside the scope of CASP transfer regulation."
    }
   ],
   "type": "activity"
  },
  {
   "id": "art-issuance",
   "name": "Issuing asset-referenced tokens",
   "definition": "Offering to the public, or seeking admission to trading of, a token that stabilises its value by referencing other assets or a basket of currencies.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Title III, Art. 16",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "stablecoin-issuer"
   ],
   "answer": "Offering or seeking trading admission for an asset-referenced token (ART) stabilised against a basket of assets or currencies requires a stablecoin issuer authorisation under MiCA Title III, Article 16. Authorisation requires an approved white paper, reserve asset segregation and robust capitalisation, enabling the issuer to offer the token throughout the European Union.",
   "faq": [
    {
     "q": "What reserve asset requirements apply to asset-referenced token issuers?",
     "a": "Issuers must maintain a segregated reserve of assets that backs token claims at all times. Reserves must be held in safe custody with authorised credit institutions or custodians, invested exclusively in secure, low-risk instruments, and managed to withstand liquidity stress and sudden redemption demands."
    },
    {
     "q": "Can non-bank fintechs issue asset-referenced tokens under MiCA?",
     "a": "Yes, legal entities established in the European Union that are not credit institutions may apply for authorisation as an ART issuer under MiCA Title III, provided they meet strict governance, capital, liquidity and white paper clearance requirements supervised by their national competent authority."
    }
   ],
   "type": "activity"
  },
  {
   "id": "emt-issuance",
   "name": "Issuing e-money tokens",
   "definition": "Offering to the public, or seeking admission to trading of, a token that references the value of a single official currency.",
   "refs": [
    {
     "list": "MiCA",
     "item": "Title IV, Art. 48",
     "url": "https://eur-lex.europa.eu/eli/reg/2023/1114/oj"
    }
   ],
   "families": [
    "stablecoin-issuer",
    "emi",
    "bank"
   ],
   "answer": "Issuing an e-money token (EMT) referencing a single official currency requires authorisation as a stablecoin issuer, restricted to authorised electronic money institutions (EMIs) or credit institutions under MiCA Title IV, Article 48. Authorised EMIs, with initial capital of EUR 350,000, can passport issuance across the EEA, granting holders par-value redemption rights.",
   "faq": [
    {
     "q": "Can a standard crypto startup issue an e-money token directly under MiCA?",
     "a": "No, MiCA restricts the issuance of e-money tokens exclusively to authorised credit institutions (banks) and electronic money institutions. Any entity wishing to issue a single-currency stablecoin in the EU must first obtain a banking licence or an EMI authorisation."
    },
    {
     "q": "Are holders of e-money tokens entitled to claim redemption at par?",
     "a": "Yes, issuers of e-money tokens must provide holders with an unconditional right to redeem their tokens for official currency at par value at any time. Issuers cannot charge redemption fees unless explicitly stated in the approved crypto-asset white paper under permitted circumstances."
    }
   ],
   "type": "activity"
  },
  {
   "id": "cash-placement",
   "name": "Cash placement on a payment account",
   "definition": "Services enabling cash to be placed on a payment account, and the operations required to run that account.",
   "refs": [
    {
     "list": "PSD2",
     "item": "Annex I (1)",
     "url": "https://eur-lex.europa.eu/eli/dir/2015/2366/oj"
    }
   ],
   "families": [
    "payment-institution",
    "emi",
    "bank"
   ],
   "answer": "Enabling cash deposits onto a payment account and managing associated account operations requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (1). Initial capital for a PI varies from EUR 20,000 to EUR 125,000. Authorised institutions can passport operations across the EEA.",
   "faq": [
    {
     "q": "Can a payment institution operate cash deposit ATMs or teller counters?",
     "a": "Yes, licensed payment institutions authorised for cash placement may operate physical cash counters, automated deposit machines or partnered retail deposit networks. The institution must maintain strict anti-money-laundering controls and customer identification procedures for all cash intake."
    },
    {
     "q": "How does cash placement differ from accepting repayable deposits?",
     "a": "Cash placed on a payment account with a payment institution or EMI must be used strictly for executing payment transactions and cannot earn interest. Only licensed credit institutions (banks) may accept repayable deposits from the public to fund proprietary lending."
    }
   ],
   "type": "activity"
  },
  {
   "id": "cash-withdrawal",
   "name": "Cash withdrawal from a payment account",
   "definition": "Services enabling cash to be withdrawn from a payment account, and the operations required to run that account.",
   "refs": [
    {
     "list": "PSD2",
     "item": "Annex I (2)",
     "url": "https://eur-lex.europa.eu/eli/dir/2015/2366/oj"
    }
   ],
   "families": [
    "payment-institution",
    "emi",
    "bank"
   ],
   "answer": "Providing cash withdrawal services from a payment account and operating related infrastructure requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (2). Initial PI capital ranges from EUR 20,000 to EUR 125,000. European authorisation allows passporting of cash-out services across all EEA member states.",
   "faq": [
    {
     "q": "Does operating an independent ATM network require a full payment institution licence?",
     "a": "Independent ATM deployers that only dispense cash without maintaining customer payment accounts may qualify for specific national exemptions under PSD2. However, institutions that manage user payment accounts and settle transactions directly require payment institution, EMI or banking authorisation."
    },
    {
     "q": "Can an authorised payment institution offer cashback at retail checkout?",
     "a": "Yes, licensed payment institutions and electronic money institutions can support cashback services where customers withdraw cash during retail purchases, subject to merchant agreements, daily transaction caps and robust fraud-prevention rules."
    }
   ],
   "type": "activity"
  },
  {
   "id": "payment-execution",
   "name": "Execution of payment transactions",
   "definition": "Executing direct debits, card payments and credit transfers, including standing orders, from a payment account.",
   "refs": [
    {
     "list": "PSD2",
     "item": "Annex I (3)",
     "url": "https://eur-lex.europa.eu/eli/dir/2015/2366/oj"
    }
   ],
   "families": [
    "payment-institution",
    "emi",
    "bank"
   ],
   "answer": "Executing credit transfers, direct debits and card payments from a payment account requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (3). PIs require initial capital between EUR 20,000 and EUR 125,000. Authorised payment providers benefit from passporting rights throughout the European Economic Area.",
   "faq": [
    {
     "q": "What safeguarding rules apply to funds received for payment execution?",
     "a": "Payment institutions and EMIs must safeguard client funds received for transaction execution. Safeguarding requires holding funds in segregated accounts with an authorised credit institution or investing them in secure, liquid assets to insulate customers against insolvency risks."
    },
    {
     "q": "What is the difference between execution of payment transactions and money remittance?",
     "a": "Payment execution requires holding or maintaining a payment account in the payer's or payee's name to process transactions. In contrast, money remittance moves funds between parties without opening or maintaining dedicated payment accounts."
    }
   ],
   "type": "activity"
  },
  {
   "id": "payment-execution-credit-line",
   "name": "Execution of payment transactions covered by a credit line",
   "definition": "Executing payment transactions where the funds are covered by a credit line granted to the user, within the limits PSD2 allows.",
   "refs": [
    {
     "list": "PSD2",
     "item": "Annex I (4) and Art. 18(4)",
     "url": "https://eur-lex.europa.eu/eli/dir/2015/2366/oj"
    }
   ],
   "families": [
    "payment-institution",
    "emi",
    "bank"
   ],
   "answer": "Executing payment transactions backed by a short-term credit line requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (4) and Article 18(4). For non-bank institutions, credit must remain ancillary to payment services, cannot be funded from client deposits, and is subject to EEA passporting rules.",
   "faq": [
    {
     "q": "What restrictions govern credit lines granted by payment institutions?",
     "a": "Under PSD2 Article 18(4), credit granted by a payment institution must be purely ancillary to payment transactions, cannot be funded from safeguarded client money, and must be repaid within short periods defined by national supervisory guidelines."
    },
    {
     "q": "Can an EMI issue credit cards using client funds?",
     "a": "No, electronic money institutions cannot use customer deposits or stored-value balances to finance credit lines. Credit must be financed exclusively from the institution's own capital or external bank facilities, complying with strict liquidity and exposure limits."
    }
   ],
   "type": "activity"
  },
  {
   "id": "card-issuing-acquiring",
   "name": "Issuing payment instruments and acquiring payment transactions",
   "definition": "Issuing cards or other payment instruments to payers, and acquiring card and other payment transactions for merchants.",
   "refs": [
    {
     "list": "PSD2",
     "item": "Annex I (5)",
     "url": "https://eur-lex.europa.eu/eli/dir/2015/2366/oj"
    }
   ],
   "families": [
    "payment-institution",
    "emi",
    "bank"
   ],
   "answer": "Issuing payment cards or acquiring merchant transactions requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (5). Full PIs carrying out issuing or acquiring require initial capital of EUR 125,000. Authorised providers can passport merchant acquiring and card issuing across the European Union.",
   "faq": [
    {
     "q": "Does a merchant acquiring business need direct membership with card networks?",
     "a": "Authorised acquirers typically secure principal or associate membership with schemes like Visa and Mastercard. However, smaller payment facilitators can operate under the sponsorship of an established principal acquirer while maintaining their own payment institution licence."
    },
    {
     "q": "How does card issuing differ from e-money card issuance?",
     "a": "Standard payment institution card issuing links a payment card to an underlying payment account for debit or deferred settlement. If the card stores prepaid balances or circulates electronic monetary value redeemable with third parties, an EMI licence is required."
    }
   ],
   "type": "activity"
  },
  {
   "id": "money-remittance",
   "name": "Money remittance",
   "definition": "Receiving funds from a payer solely to transfer them to a payee or another provider, without opening payment accounts.",
   "refs": [
    {
     "list": "PSD2",
     "item": "Annex I (6)",
     "url": "https://eur-lex.europa.eu/eli/dir/2015/2366/oj"
    }
   ],
   "families": [
    "payment-institution",
    "emi",
    "money-transmitter",
    "bank"
   ],
   "answer": "Transferring funds for a payer without opening payment accounts is money remittance, PSD2 Annex I (6). In the EU it needs a payment institution, e-money institution or banking licence; a remittance-only payment institution needs initial capital of EUR 20,000 and can passport across the EEA. Outside the EU, money transmitter or money services business regimes apply, such as FinCEN and FINTRAC registration.",
   "faq": [
    {
     "q": "How does a money services business differ from a European payment institution?",
     "a": "In the United States, money transmitters register with FinCEN as money services businesses and obtain individual state licences. In the European Union, a single payment institution licence granted in one member state allows cross-border remittance via passporting across all EU member states."
    },
    {
     "q": "Can a remittance provider use an agent network to receive cash?",
     "a": "Yes, licensed remittance institutions frequently appoint registered retail agents, such as shops and post offices, to collect cash. The authorised institution remains fully responsible for regulatory compliance, customer identification and monitoring conducted by its appointed agents."
    }
   ],
   "type": "activity"
  },
  {
   "id": "payment-initiation",
   "name": "Payment initiation services",
   "definition": "Initiating a payment order at the user's request from an account held with another provider, as in open banking.",
   "refs": [
    {
     "list": "PSD2",
     "item": "Annex I (7)",
     "url": "https://eur-lex.europa.eu/eli/dir/2015/2366/oj"
    }
   ],
   "families": [
    "payment-institution",
    "emi",
    "bank"
   ],
   "answer": "Initiating online payment orders directly from a customer's bank account requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (7). A dedicated payment initiation service provider (PISP) requires initial capital of EUR 50,000, professional indemnity insurance and benefits from passporting rights throughout the EEA.",
   "faq": [
    {
     "q": "Does a payment initiation service provider hold customer funds?",
     "a": "No, a PISP initiates transfers directly between the payer's bank account and the payee's account. Because PISPs never hold, settle or safeguard client funds during the transaction lifecycle, they face lower initial capital requirements than full payment institutions."
    },
    {
     "q": "How do banks provide access to payment initiation services?",
     "a": "Under PSD2 open banking rules, credit institutions must provide dedicated application programming interfaces (APIs) or modified customer interfaces. These allow authorised PISPs to access account payment functionality securely upon explicit consent from the account holder."
    }
   ],
   "type": "activity"
  },
  {
   "id": "account-information",
   "name": "Account information services",
   "definition": "Providing consolidated online information on one or more payment accounts the user holds with other providers.",
   "refs": [
    {
     "list": "PSD2",
     "item": "Annex I (8)",
     "url": "https://eur-lex.europa.eu/eli/dir/2015/2366/oj"
    }
   ],
   "families": [
    "payment-institution",
    "emi",
    "bank"
   ],
   "answer": "Providing consolidated online data on payment accounts held across multiple institutions requires a payment institution (PI) licence, an electronic money institution (EMI) licence or a banking licence under PSD2 Annex I (8). Dedicated account information service providers (AISPs) do not require initial capital under PSD2, but must maintain professional indemnity insurance and can passport across the EEA.",
   "faq": [
    {
     "q": "Can an AISP initiate payment transactions on behalf of users?",
     "a": "No, an account information service licence permits only read-only access to transaction history, balances and account details. To initiate payment transfers or execute debit transactions, a provider must obtain additional authorisation as a payment initiation service provider or payment institution."
    },
    {
     "q": "What security standards must an AISP meet to access bank APIs?",
     "a": "AISPs must use qualified certificates for electronic seals (QSEAL) and website authentication (QWAC) under eIDAS standards. They must adhere to strict data protection rules, accessing only data explicitly consented to by the customer."
    }
   ],
   "type": "activity"
  },
  {
   "id": "e-money-issuance",
   "name": "Issuing electronic money",
   "definition": "Issuing monetary value stored electronically against funds received, redeemable at par and accepted by third parties as payment.",
   "refs": [
    {
     "list": "EMD2",
     "item": "Art. 2(2)",
     "url": "https://eur-lex.europa.eu/eli/dir/2009/110/oj"
    }
   ],
   "families": [
    "emi",
    "bank"
   ],
   "answer": "Issuing electronically stored monetary value redeemable at par and accepted by third parties requires an electronic money institution (EMI) licence or a banking licence under EMD2 Article 2(2). In the EU, an authorised EMI requires initial capital of EUR 350,000, can passport across the EEA, and must safeguard received funds against insolvency.",
   "faq": [
    {
     "q": "How does electronic money differ from bank deposits?",
     "a": "Bank deposits represent repayable funds that banks can lend out for interest, protected by statutory deposit guarantee schemes. Electronic money is prepaid digital cash backed by segregated client assets that cannot be lent out or generate interest for the cardholder."
    },
    {
     "q": "Can an authorised EMI provide payment services without a separate licence?",
     "a": "Yes, an electronic money institution licence automatically authorises the institution to provide all payment services listed under PSD2. EMIs do not need a separate payment institution licence to execute transfers, acquire transactions or issue payment cards."
    }
   ],
   "type": "activity"
  },
  {
   "id": "order-reception-transmission",
   "name": "Reception and transmission of orders",
   "definition": "Receiving client orders in financial instruments and passing them to another firm for execution.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section A(1)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm",
    "bank"
   ],
   "answer": "Receiving orders to buy or sell securities and passing them to third-party brokers for execution requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(1). Authorised introducing brokers benefit from European passporting rights, allowing them to market services and aggregate client orders across all EEA member states.",
   "faq": [
    {
     "q": "Can an order reception and transmission broker hold client money?",
     "a": "An investment firm authorised solely for order reception and transmission may hold client money only if it holds the relevant ancillary permission under MiFID II Section B(1). Without that permission, all client funds and securities must flow directly to the executing broker."
    },
    {
     "q": "What disclosure rules apply when receiving payment for order flow?",
     "a": "MiFID II strictly restricts payment for order flow. Firms transmitting client orders must demonstrate that any routing arrangements or venue fees enhance execution quality for the client and do not create conflicts of interest or undermine best execution obligations."
    }
   ],
   "type": "activity"
  },
  {
   "id": "order-execution",
   "name": "Execution of orders on behalf of clients",
   "definition": "Concluding agreements to buy or sell financial instruments on behalf of clients.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section A(2)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm",
    "bank"
   ],
   "answer": "Concluding agreements to buy or sell financial instruments on behalf of clients requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(2). Authorised brokerages can passport across the European Economic Area, and must establish comprehensive best execution policies and transaction reporting to supervisory authorities.",
   "faq": [
    {
     "q": "What factors determine best execution under MiFID II?",
     "a": "Brokers must consider price, execution costs, speed, likelihood of execution and settlement, order size and market impact. For retail clients, total consideration—comprising the instrument price and all associated execution expenses—serves as the primary benchmark."
    },
    {
     "q": "What post-trade transaction reporting is required for executed orders?",
     "a": "Executing firms must report complete transaction details to their national competent authority or through an approved reporting mechanism by the close of the following working day, including trader identification, client identifiers and exact trade parameters."
    }
   ],
   "type": "activity"
  },
  {
   "id": "dealing-own-account",
   "name": "Dealing on own account",
   "definition": "Trading financial instruments against proprietary capital, which includes acting as counterparty to client trades.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section A(3)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm",
    "bank"
   ],
   "answer": "Trading financial instruments against proprietary capital to conclude market transactions requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(3). Authorised market makers and systematic internalisers can passport across the EEA, and are subject to stringent capital adequacy rules, market conduct supervision and pre-trade transparency obligations.",
   "faq": [
    {
     "q": "Does proprietary trading always require a MiFID II investment firm licence?",
     "a": "Firms trading purely for their own account without external clients may qualify for the dealing-on-own-account exemption under MiFID II Article 2. However, market makers, members of regulated markets, or algorithmic high-frequency trading firms are generally disqualified from this exemption."
    },
    {
     "q": "What transparency requirements apply to systematic internalisers?",
     "a": "Systematic internalisers dealing on own account must publish firm bid and offer quotes during market hours for liquid instruments up to standard market size, and provide non-discriminatory commercial access to qualified institutional and retail counterparties."
    }
   ],
   "type": "activity"
  },
  {
   "id": "portfolio-management",
   "name": "Portfolio management",
   "definition": "Managing client portfolios that include financial instruments on a discretionary, client-by-client basis.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section A(4)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm",
    "fund-manager",
    "bank"
   ],
   "answer": "Managing client investment portfolios on a discretionary basis under an individual mandate requires an investment firm licence, a fund manager licence or a banking licence under MiFID II Annex I, Section A(4). Authorised discretionary wealth managers can passport across the EEA, and must execute comprehensive client suitability profiles, investment mandates and regular portfolio reporting.",
   "faq": [
    {
     "q": "How does discretionary portfolio management differ from collective fund management?",
     "a": "Discretionary portfolio management operates on an individual client basis, where assets remain segregated in the client's own custodial account under a specific mandate. Fund managers manage pooled collective investment vehicles where investors hold units or shares in a single fund entity."
    },
    {
     "q": "What suitability obligations govern discretionary portfolio managers?",
     "a": "Before establishing a discretionary portfolio, the manager must assess the client's financial position, investment objectives, knowledge, experience and capacity to absorb losses. The portfolio allocation must remain consistent with the agreed investment strategy and risk profile."
    }
   ],
   "type": "activity"
  },
  {
   "id": "investment-advice",
   "name": "Investment advice",
   "definition": "Giving personal recommendations to a client about one or more transactions in financial instruments.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section A(5)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm",
    "bank"
   ],
   "answer": "Providing personal recommendations to clients regarding transactions in financial instruments requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(5). Authorised advisory firms benefit from EEA passporting rights, and must classify recommendations as independent or non-independent while adhering to strict suitability and disclosure rules.",
   "faq": [
    {
     "q": "What distinguishes independent investment advice from non-independent advice under MiFID II?",
     "a": "Independent advisers must assess a broad range of market instruments from diverse providers and cannot accept or retain third-party commissions or inducements. Non-independent advisers may recommend proprietary products or receive permitted broker inducements, provided conflicts are disclosed."
    },
    {
     "q": "What is required before issuing a personalised investment recommendation?",
     "a": "Advisers must complete a formal suitability assessment evaluating the client's financial standing, risk appetite and investment knowledge. They must provide a written suitability report explaining why the specific recommendation aligns with the client's long-term financial goals."
    }
   ],
   "type": "activity"
  },
  {
   "id": "underwriting-firm-commitment",
   "name": "Underwriting or placing on a firm commitment basis",
   "definition": "Guaranteeing the sale of an issue of financial instruments by committing to buy what is not sold to investors.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section A(6)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm",
    "bank"
   ],
   "answer": "Underwriting securities issuances by guaranteeing to purchase unsubscribed financial instruments requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(6). Authorised underwriters can passport syndicated offering services across the EEA, and must maintain substantial regulatory capital reserves to absorb inventory risk during major corporate distributions.",
   "faq": [
    {
     "q": "What is the main operational risk in firm commitment underwriting?",
     "a": "In firm commitment underwriting, the underwriter agrees to purchase all unsold securities from the issuer at a predetermined price. If market demand drops, the underwriter must absorb the inventory on its own balance sheet, incurring potential valuation losses."
    },
    {
     "q": "How do capital adequacy rules impact underwriting firms?",
     "a": "Because underwriting involves balance-sheet exposure, prudential regulators impose specific underwriting risk capital charges under the Investment Firms Regulation (IFR) or CRD. Firms must demonstrate sufficient liquid capital to absorb potential market downturns during the syndication period."
    }
   ],
   "type": "activity"
  },
  {
   "id": "placing-without-commitment",
   "name": "Placing without a firm commitment",
   "definition": "Placing financial instruments with investors on a best-efforts basis, without guaranteeing the sale.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section A(7)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm",
    "bank"
   ],
   "answer": "Distributing securities to investors on a best-efforts basis without guaranteeing subscription requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(7). Authorised placement agents benefit from EU passporting rights, and must enforce stringent conflict-of-interest procedures between corporate issuing clients and prospective private or institutional investors.",
   "faq": [
    {
     "q": "How does placing without a firm commitment differ from underwriting?",
     "a": "Placing without a firm commitment acts on a best-efforts basis; the distributor acts as an agent and does not guarantee the sale or purchase unsold securities. In underwriting, the institution commits its own capital to buy any unsubscribed shares or bonds."
    },
    {
     "q": "What conflict-of-interest controls are mandatory when placing securities?",
     "a": "Placement agents must manage potential conflicts between the issuer seeking high valuation and investor clients seeking attractive returns. Firms cannot allocate overpriced placements to captive discretionary client portfolios without explicit justification and robust internal governance controls."
    }
   ],
   "type": "activity"
  },
  {
   "id": "operating-mtf",
   "name": "Operating a multilateral trading facility (MTF)",
   "definition": "Running a multilateral system, other than a regulated market, that matches third-party interests in financial instruments under non-discretionary rules.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section A(8)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm"
   ],
   "answer": "Operating a multilateral system bringing together multiple third-party buying and selling interests in financial instruments requires an investment firm licence under MiFID II Annex I, Section A(8). Authorised MTF operators can passport trading venues across the EEA, and must maintain transparent, non-discretionary rulebooks, market surveillance systems and pre- and post-trade transparency.",
   "faq": [
    {
     "q": "How does a multilateral trading facility differ from a regulated market?",
     "a": "Regulated markets, such as traditional stock exchanges, require dedicated stock exchange authorisation with statutory listing powers. MTFs operate under investment firm licences with flexible admission criteria, though both must enforce non-discretionary trading rules and comprehensive trade surveillance."
    },
    {
     "q": "Can an MTF operator trade against its own book within the facility?",
     "a": "No, operators of multilateral trading facilities are prohibited from executing client orders against proprietary capital within the system. The platform must remain strictly multilateral and neutral, allowing third-party buying and selling interests to interact without operator intervention."
    }
   ],
   "type": "activity"
  },
  {
   "id": "operating-otf",
   "name": "Operating an organised trading facility (OTF)",
   "definition": "Running a multilateral system for non-equity instruments where the operator exercises discretion over order execution.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section A(9)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm"
   ],
   "answer": "Operating a discretionary multilateral trading system for non-equity instruments such as bonds and derivatives requires an investment firm licence under MiFID II Annex I, Section A(9). Authorised OTF operators can passport across the EEA, and are permitted to exercise discretion when routing orders and facilitating negotiations between professional market participants.",
   "faq": [
    {
     "q": "Which financial instruments can be traded on an organised trading facility?",
     "a": "OTFs are restricted to non-equity instruments, including government and corporate bonds, structured finance products, emission allowances and financial derivatives. Equities and exchange-traded funds cannot be admitted to trading on an OTF."
    },
    {
     "q": "How does operator discretion work on an OTF?",
     "a": "Unlike MTFs with deterministic rulebooks, an OTF operator may exercise discretion at two stages: when deciding to place or retract an order on the facility, and when deciding whether and when to match two or more client orders."
    }
   ],
   "type": "activity"
  },
  {
   "id": "safekeeping-financial-instruments",
   "name": "Safekeeping and administration of financial instruments",
   "definition": "Holding financial instruments for clients and related services such as cash and collateral management, as an ancillary service.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section B(1)",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm",
    "bank"
   ],
   "answer": "Safekeeping and administering client financial instruments alongside cash and collateral management requires an investment firm licence holding ancillary permissions or a banking licence under MiFID II Annex I, Section B(1). Authorised custodians can passport across the EEA, and must enforce asset segregation, client money protection rules and periodic reconciliations with central depositaries.",
   "faq": [
    {
     "q": "Can a standalone firm obtain a licence solely for safekeeping financial instruments?",
     "a": "Under MiFID II, safekeeping is classified as an ancillary service (Section B). An investment firm cannot be authorised exclusively for safekeeping; it must hold authorisation for at least one core investment service, such as order execution or portfolio management."
    },
    {
     "q": "What asset segregation standards must financial custodians observe?",
     "a": "Custodians must keep internal books and accounts that clearly distinguish client holdings from proprietary assets. They must ensure that external sub-custody and central securities depository accounts identify client ownership to protect securities from creditor claims during liquidation."
    }
   ],
   "type": "activity"
  },
  {
   "id": "cfd-fx-brokerage",
   "name": "CFD and forex brokerage",
   "definition": "Offering retail and professional clients contracts for difference and rolling spot forex, usually as dealing on own account or order execution.",
   "refs": [
    {
     "list": "MiFID II",
     "item": "Annex I, Section C(4) and C(9) instruments",
     "url": "https://eur-lex.europa.eu/eli/dir/2014/65/oj"
    }
   ],
   "families": [
    "investment-firm"
   ],
   "answer": "Brokering contracts for difference (CFDs) and rolling spot forex requires an investment firm licence under MiFID II for Annex I Section C(4) and C(9) instruments, typically combining dealing on own account with order execution. Authorised firms can passport across the EEA, and must enforce mandatory leverage limits, negative balance protection and standardised risk warnings.",
   "faq": [
    {
     "q": "What retail leverage restrictions apply to CFD brokers in Europe?",
     "a": "European regulators enforce strict leverage caps for retail CFD traders across major currency pairs and volatile underlying assets. Brokers must also mandate margin close-out rules and guarantee negative balance protection for retail client accounts."
    },
    {
     "q": "Can a CFD broker operate a B-book model where it trades against clients?",
     "a": "Yes, a broker licensed for dealing on own account may internalise client flow (B-book). However, firms must disclose execution policies, manage conflicts of interest transparently and comply with strict market conduct and best execution standards."
    }
   ],
   "type": "activity"
  },
  {
   "id": "aif-management",
   "name": "Managing alternative investment funds",
   "definition": "Performing portfolio management and risk management for funds that are not UCITS, such as hedge, private equity and real estate funds.",
   "refs": [
    {
     "list": "AIFMD",
     "item": "Art. 4(1)(w) and Annex I",
     "url": "https://eur-lex.europa.eu/eli/dir/2011/61/oj"
    }
   ],
   "families": [
    "fund-manager"
   ],
   "answer": "Managing collective investment schemes that are not UCITS, such as private equity, hedge or real estate funds, requires a fund manager licence under AIFMD Article 4(1)(w) and Annex I. Authorised alternative investment fund managers (AIFMs) benefit from EU passporting to market and manage funds across the EEA for professional investors.",
   "faq": [
    {
     "q": "What is the sub-threshold exemption for small fund managers under AIFMD?",
     "a": "Managers with aggregate portfolio assets under management below statutory thresholds qualify for lighter national registration rather than full authorisation. While registered sub-threshold managers avoid extensive prudential reporting requirements, their funds cannot benefit from cross-border EU marketing passports."
    },
    {
     "q": "Must an alternative investment fund appoint an independent depositary?",
     "a": "Yes, fully authorised AIFMs must ensure each managed fund appoints an independent depositary to oversee cash flows, verify asset ownership and safe-keep fund assets, providing statutory investor protection against misappropriation or operational default."
    }
   ],
   "type": "activity"
  },
  {
   "id": "ucits-management",
   "name": "Managing UCITS funds",
   "definition": "Managing undertakings for collective investment in transferable securities, the EU's retail fund format.",
   "refs": [
    {
     "list": "UCITS",
     "item": "Art. 6 and Annex II",
     "url": "https://eur-lex.europa.eu/eli/dir/2009/65/oj"
    }
   ],
   "families": [
    "fund-manager"
   ],
   "answer": "Managing harmonised retail collective investment schemes across the European Union requires a fund manager licence under the UCITS Directive, Article 6 and Annex II. Authorised UCITS management companies benefit from management and marketing passports across the EEA, and must adhere to strict portfolio diversification rules, eligible asset criteria and statutory liquidity safeguards.",
   "faq": [
    {
     "q": "Can a UCITS management company manage alternative investment funds as well?",
     "a": "Yes, a management company can hold dual authorisation as both a UCITS management company and a full AIFM, commonly known as a Super ManCo. This structure allows the entity to manage both retail and alternative funds under one roof."
    },
    {
     "q": "What diversification requirements apply to UCITS funds?",
     "a": "UCITS funds adhere to strict portfolio concentration limits: exposure to securities from a single issuer is tightly capped, and aggregate large exposures cannot exceed statutory diversification ratios prescribed by the directive."
    }
   ],
   "type": "activity"
  },
  {
   "id": "deposit-taking",
   "name": "Taking deposits from the public",
   "definition": "Accepting deposits or other repayable funds from the public, the activity reserved to credit institutions.",
   "refs": [
    {
     "list": "CRD",
     "item": "Art. 9 and Annex I (1)",
     "url": "https://eur-lex.europa.eu/eli/dir/2013/36/oj"
    }
   ],
   "families": [
    "bank"
   ],
   "answer": "Accepting repayable funds and deposits from the public is strictly reserved to credit institutions, requiring a full banking licence under CRD Article 9 and Annex I (1). In the European Union, bank initial capital EUR 5 million is required under CRD Article 12, granting passporting rights throughout the EEA and mandatory deposit guarantee scheme coverage.",
   "faq": [
    {
     "q": "Can fintechs accept customer deposits without a banking licence?",
     "a": "No, non-bank fintechs cannot accept repayable deposits from the public. EMIs and payment institutions may hold client funds solely for payment execution or prepaid e-money. These funds cannot be lent out or co-mingled, and are not covered by statutory deposit guarantee schemes."
    },
    {
     "q": "How does the European Central Bank oversee banking licences?",
     "a": "In the eurozone, the European Central Bank directly grants all banking authorisations alongside national competent authorities under the Single Supervisory Mechanism. The ECB reviews shareholder suitability, capital adequacy, risk governance and the viability of the applicant's business model."
    }
   ],
   "type": "activity"
  },
  {
   "id": "credit-granting",
   "name": "Lending",
   "definition": "Granting loans, including consumer credit, mortgage credit, factoring and financing of commercial transactions.",
   "refs": [
    {
     "list": "CRD",
     "item": "Annex I (2)",
     "url": "https://eur-lex.europa.eu/eli/dir/2013/36/oj"
    }
   ],
   "families": [
    "bank",
    "lending"
   ],
   "answer": "Granting commercial loans, mortgage credit or factoring facilities requires a banking licence or a dedicated lending licence under CRD Annex I (2) and national credit laws. Credit institutions can passport lending across the EEA, whereas non-bank commercial lenders must rely on national licensing or registration frameworks in each target jurisdiction.",
   "faq": [
    {
     "q": "Can a non-bank lending company fund loans from customer deposits?",
     "a": "No, non-bank lenders cannot accept public deposits. They must fund their loan portfolios entirely from proprietary equity capital, wholesale credit facilities, institutional debt issues or securitisation structures, subject to national non-bank financial institution regulations."
    },
    {
     "q": "Does corporate commercial lending require a European passport?",
     "a": "CRD provides passporting rights for lending only to authorised credit institutions. Non-bank lending companies cannot passport their lending activities across the EU and must comply with national licensing, notification or exemption rules in each member state."
    }
   ],
   "type": "activity"
  },
  {
   "id": "consumer-credit",
   "name": "Consumer credit",
   "definition": "Granting or promising credit to consumers, including buy-now-pay-later, subject to consumer protection rules on information, creditworthiness and withdrawal.",
   "refs": [
    {
     "list": "CCD2",
     "item": "Art. 2–3",
     "url": "https://eur-lex.europa.eu/eli/dir/2023/2225/oj"
    }
   ],
   "families": [
    "lending",
    "bank"
   ],
   "answer": "Offering consumer credit agreements, including personal loans and buy-now-pay-later arrangements, requires a lending licence or a banking licence under the Consumer Credit Directive (CCD2) Articles 2–3 and national law. Providers must comply with rigorous pre-contractual disclosure standards, mandatory creditworthiness assessments and statutory cooling-off right-of-withdrawal rules across member states.",
   "faq": [
    {
     "q": "Are buy-now-pay-later providers covered under consumer credit regulations?",
     "a": "Yes, the revised Consumer Credit Directive (CCD2) brings deferred payment arrangements and buy-now-pay-later services into full regulatory scope. Providers must assess consumer creditworthiness, provide standardised fee disclosures and ensure transparent repayment terms."
    },
    {
     "q": "What happens if a lender fails to perform a creditworthiness assessment?",
     "a": "Under consumer credit legislation, lenders must evaluate the consumer's ability to repay before granting credit. Failure to perform adequate checks can result in supervisory sanctions, loan agreement unenforceability, or caps on interest charges under national enforcement statutes."
    }
   ],
   "type": "activity"
  },
  {
   "id": "crowdfunding",
   "name": "Crowdfunding services",
   "definition": "Matching business funding interests of investors and project owners through a platform, by facilitating loans or placing securities.",
   "refs": [
    {
     "list": "ECSPR",
     "item": "Art. 2(1)(a)",
     "url": "https://eur-lex.europa.eu/eli/reg/2020/1503/oj"
    }
   ],
   "families": [
    "investment-firm",
    "lending"
   ],
   "answer": "Matching business project owners with retail and institutional investors to facilitate loans or securities placements requires authorisation under the European Crowdfunding Service Providers Regulation (ECSPR) Article 2(1)(a), held by investment firms or dedicated lending platforms. Authorised crowdfunding providers benefit from full passporting rights across all European Union member states.",
   "faq": [
    {
     "q": "What individual project fundraising cap applies under ECSPR?",
     "a": "Under ECSPR, crowdfunding project owners are subject to an annual capital raise cap per project. Larger capital raises must comply with standard prospectus regulations and full MiFID II investment firm placement rules."
    },
    {
     "q": "How are retail investors protected on crowdfunding platforms?",
     "a": "Platforms must categorise investors as sophisticated or non-sophisticated. Non-sophisticated investors must complete an entry knowledge test, undergo simulated loss simulations, and receive explicit risk warnings before investing capital, accompanied by a pre-contractual reflection period."
    }
   ],
   "type": "activity"
  },
  {
   "id": "vasp-exchange",
   "name": "Virtual asset exchange (FATF)",
   "definition": "Exchanging virtual assets for fiat currency or for other virtual assets as a business, as defined in the FATF glossary.",
   "refs": [
    {
     "list": "FATF",
     "item": "Glossary — virtual asset service provider (i)–(ii)",
     "url": "https://www.fatf-gafi.org/en/pages/fatf-glossary.html"
    }
   ],
   "families": [
    "vasp",
    "money-transmitter"
   ],
   "answer": "Exchanging virtual assets for fiat currencies or other virtual assets outside the EU requires a virtual asset service provider (VASP) licence or a money transmitter / money services business (MSB) registration under FATF Recommendations. In regimes such as Dubai, Singapore or the US, operators face anti-money-laundering registration, fit-and-proper testing and local supervision.",
   "faq": [
    {
     "q": "What anti-money-laundering obligations apply to FATF-registered crypto exchanges?",
     "a": "Regulated digital asset exchanges must conduct thorough customer due diligence, implement ongoing transaction monitoring programmes, report suspicious activities to financial intelligence units and operate compliant travel rule solutions that transmit verified originator and beneficiary details for cross-border transfers."
    },
    {
     "q": "Can a non-EU VASP exchange licence be passported internationally?",
     "a": "No, VASP licences do not offer international passporting. A licence obtained in one jurisdiction, such as Singapore or Dubai, applies strictly within that domestic market; operators must secure separate local authorisations in each country where they solicit customers."
    }
   ],
   "type": "activity"
  },
  {
   "id": "vasp-transfer",
   "name": "Virtual asset transfer (FATF)",
   "definition": "Conducting transactions that move virtual assets between addresses or accounts on behalf of another person.",
   "refs": [
    {
     "list": "FATF",
     "item": "Glossary — virtual asset service provider (iii)",
     "url": "https://www.fatf-gafi.org/en/pages/fatf-glossary.html"
    }
   ],
   "families": [
    "vasp",
    "money-transmitter"
   ],
   "answer": "Conducting transactions that transfer virtual assets between addresses or accounts on behalf of clients internationally requires a virtual asset service provider (VASP) licence or a money transmitter registration under the FATF Glossary (iii). These national regimes enforce the FATF travel rule, requiring verifiable originator and beneficiary data transmission alongside qualifying blockchain transactions.",
   "faq": [
    {
     "q": "What threshold triggers the FATF travel rule for virtual asset transfers?",
     "a": "FATF standards recommend enforcing the travel rule for virtual asset transfers exceeding prescribed de minimis thresholds. However, several countries have removed minimum thresholds entirely, applying full information exchange requirements to all transactions."
    },
    {
     "q": "How do non-EU jurisdictions regulate cross-border crypto remittances?",
     "a": "Cross-border crypto transfers are typically regulated under national money transmission laws or dedicated virtual asset regulations. In the United States, for example, providers must obtain state-level money transmitter licences alongside federal FinCEN registration."
    }
   ],
   "type": "activity"
  },
  {
   "id": "vasp-custody",
   "name": "Virtual asset safekeeping (FATF)",
   "definition": "Safekeeping or administering virtual assets, or instruments enabling control over them, for another person.",
   "refs": [
    {
     "list": "FATF",
     "item": "Glossary — virtual asset service provider (iv)",
     "url": "https://www.fatf-gafi.org/en/pages/fatf-glossary.html"
    }
   ],
   "families": [
    "vasp"
   ],
   "answer": "Safekeeping or administering virtual assets or private cryptographic keys on behalf of another person outside the European Union requires a virtual asset service provider (VASP) licence under the FATF Glossary (iv). Regulators evaluate key storage architecture, cold-storage segregation, operational redundancy, disaster recovery arrangements and fidelity insurance protections.",
   "faq": [
    {
     "q": "What security standards are typically required for VASP custody licensing?",
     "a": "Supervisory authorities require multi-signature or multi-party computation (MPC) protocols, physical hardware security modules (HSMs), geographic distribution of key shards and strict operational segregation between proprietary assets and client safekeeping reserves."
    },
    {
     "q": "Can a non-EU custodial wallet provider service international clients?",
     "a": "While offshore VASPs often accept international customers under reverse solicitation principles, active marketing, local advertising or operating local banking rails in onshore jurisdictions generally triggers mandatory local registration or full custodial licensing requirements."
    }
   ],
   "type": "activity"
  },
  {
   "id": "vasp-issuer-services",
   "name": "Services related to token offerings (FATF)",
   "definition": "Participating in and providing financial services related to an issuer's offer or sale of a virtual asset.",
   "refs": [
    {
     "list": "FATF",
     "item": "Glossary — virtual asset service provider (v)",
     "url": "https://www.fatf-gafi.org/en/pages/fatf-glossary.html"
    }
   ],
   "families": [
    "vasp"
   ],
   "answer": "Participating in and providing financial services related to an issuer's offer or sale of a virtual asset requires a virtual asset service provider (VASP) licence under the FATF Glossary (v). Regulated launchpad services, token syndications and distribution platforms must enforce anti-money-laundering screenings, investor verifications and source-of-funds investigations on behalf of token issuers.",
   "faq": [
    {
     "q": "Does acting as an initial coin offering (ICO) adviser require a VASP licence?",
     "a": "Pure technical advisory or marketing consulting usually does not trigger licensing. However, if the adviser collects investor funds, manages token distributions or brokers allocations between issuers and buyers, full VASP registration or securities licensing becomes mandatory."
    },
    {
     "q": "How do regulators treat token launchpad platforms?",
     "a": "Regulators classify launchpads as intermediaries facilitating token distributions. Platforms must verify project promoters, conduct sanctions screening on participants, implement anti-fraud safeguards and maintain detailed transaction audit trails to satisfy statutory compliance standards."
    }
   ],
   "type": "activity"
  },
  {
   "id": "currency-exchange",
   "name": "Currency exchange",
   "definition": "Buying and selling foreign currency for customers, in cash or electronically, as a bureau de change or FX service.",
   "refs": [
    {
     "list": "FATF",
     "item": "Recommendation 14 — money or value transfer services",
     "url": "https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatf-recommendations.html"
    }
   ],
   "families": [
    "money-transmitter",
    "payment-institution",
    "bank"
   ],
   "answer": "Buying and selling foreign physical currency or electronic FX for customers requires a money transmitter / money services business (MSB) licence, a payment institution (PI) licence or a banking licence under FATF Recommendation 14. In Europe, pure bureau de change operations follow national registration regimes, whereas payment-account-linked FX execution requires payment institution authorisation.",
   "faq": [
    {
     "q": "Does a physical bureau de change need a full payment institution licence?",
     "a": "Physical over-the-counter currency exchange where cash is exchanged immediately without involving payment accounts is excluded from PSD2. However, operators must obtain national bureau de change registrations and comply with comprehensive anti-money-laundering customer identification rules."
    },
    {
     "q": "When does online currency exchange trigger payment licensing?",
     "a": "If foreign currency is received, held on account or wired onward to third parties, the service constitutes payment execution or money remittance, requiring full payment institution, EMI or banking authorisation under European payment directives."
    }
   ],
   "type": "activity"
  },
  {
   "id": "online-gaming-b2c",
   "name": "Online gaming and betting for players (B2C)",
   "definition": "Offering casino games, sports betting, poker or lotteries directly to players over the internet.",
   "refs": [
    {
     "list": "Malta Gaming Act",
     "item": "Cap. 583",
     "url": "https://legislation.mt/eli/cap/583/eng"
    }
   ],
   "families": [
    "gaming"
   ],
   "answer": "Offering online casino games, sports betting, poker or lotteries directly to players requires a B2C gaming licence under national legislation, such as the Malta Gaming Act Cap. 583. Gaming authorisations are granted per jurisdiction without an EU-wide passport, requiring player fund segregation, certified random number generators, responsible gaming tools and anti-money-laundering controls.",
   "faq": [
    {
     "q": "Can a single online gaming licence cover all European countries?",
     "a": "No, gambling regulation is not harmonised across the European Union and there is no passporting regime. Operators must obtain individual national licences in countries with point-of-consumption regimes, such as the UK, Germany, Sweden and the Netherlands."
    },
    {
     "q": "What player protection measures are required for B2C gaming licences?",
     "a": "Regulated operators must implement mandatory deposit and loss limits, self-exclusion registers, reality checks, age-verification gateways and strict advertising standards to prevent problem gambling and safeguard vulnerable individuals from financial harm."
    }
   ],
   "type": "activity"
  },
  {
   "id": "gaming-supply-b2b",
   "name": "Supplying games and platforms to operators (B2B)",
   "definition": "Providing game content, platforms or critical gaming supplies to licensed operators rather than to players.",
   "refs": [
    {
     "list": "Malta Gaming Act",
     "item": "Cap. 583",
     "url": "https://legislation.mt/eli/cap/583/eng"
    }
   ],
   "families": [
    "gaming"
   ],
   "answer": "Supplying game software, platform infrastructure or critical gaming tools to licensed operators requires a B2B gaming supply licence under regimes such as the Malta Gaming Act Cap. 583. Licences require rigorous corporate due diligence, source of wealth scrutiny, game server certification, ISO security compliance and technical testing by accredited laboratories.",
   "faq": [
    {
     "q": "Do game developers need their own gaming licence if they do not handle player bets?",
     "a": "Yes, many premier jurisdictions, including Malta, the United Kingdom and Romania, mandate critical gaming supply licences for software developers and platform providers to ensure game mathematics, integrity and software architecture meet regulatory specifications."
    },
    {
     "q": "What technical testing must B2B gaming software undergo?",
     "a": "Game code and random number generators must be audited and certified by accredited independent testing laboratories (such as eCOGRA or GLI) to verify game randomness, theoretical return-to-player percentages and absence of security vulnerabilities."
    }
   ],
   "type": "activity"
  },
  {
   "id": "trust-corporate-services",
   "name": "Trust and company services",
   "definition": "Forming companies, acting as or arranging directors, nominee shareholders and trustees, and providing a registered office.",
   "refs": [
    {
     "list": "FATF",
     "item": "Recommendations 22–23 and Glossary — TCSP",
     "url": "https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatf-recommendations.html"
    }
   ],
   "families": [
    "trust-company"
   ],
   "answer": "Forming companies, providing registered office addresses, acting as nominee directors or administering trusts requires a trust and corporate service provider (TCSP) licence under FATF Recommendations 22–23. National frameworks in jurisdictions like the UK, Cyprus and offshore centres enforce fit-and-proper vetting, beneficial ownership registers and rigorous anti-money-laundering supervision for corporate intermediaries.",
   "faq": [
    {
     "q": "Why are trust and company service providers treated as gatekeepers by FATF?",
     "a": "TCSPs establish corporate vehicles and trust structures that can obscure ultimate beneficial ownership. FATF standards impose gatekeeper duties on TCSPs, requiring them to verify beneficial owners, identify politically exposed persons and report suspicious transactions to intelligence units."
    },
    {
     "q": "What records must a licensed TCSP maintain on client entities?",
     "a": "TCSPs must retain certified corporate formation records, registers of directors and members, identification documents for ultimate beneficial owners, documentation of source of funds, and statutory accounting records following business relationship termination."
    }
   ],
   "type": "activity"
  }
 ]
}