The market of fintech startups is not moving.

Currently with collegues we were analyzing our results 2023 and found out that fintech startups are less active nowadays.

In comparison with 2020, 21 and even 2022.

But when I say fintech I don't mean crypto. Crypto startups are still rapidly developing (untill MICA comes into force). We continue to get permissions and cryptolicenses for them.

I was speaking to other colleagues, ceos and owners of the law firms and they confirmed that the market is a bit frozen.

Nobody wants to dive deep into expensive project (500 thousands/1 mln euro) with no guarantees to get the license and no chance to get the profit.

Unfortunately it's a true fact.

So we began to clarify and found out the reasons.

1) High competition on fintech market, especially in EU. It's more hard to compete and still to have margin business.

2) Costs to start a fintech ptoroject are extremely high. Payment license, other fees, people (salaries), office and it's not all.

3) Strict rules of Regulating Authorities. From year to year more strict and stuffy.

4) Annoying looong terms to get the electronic money license. Well, one can wait from 18 to 30 months.

5) As a result reduced number of issued payment licenses

Let's just turn to analytics of issued licenses in Europe. For example let's take the best Issuers (jurisdictions) and see the number of licenses they provided.

So Lithuania the leader of EU

2020 - 18 EMI license

2021 -10 EMI license

2022 - 6 EMI license

Less and less each year


I put down Estonia just for fun))

2020 0 EMI license

2022 0 EMI license

In 2022 Cyprus issued 4 EMI licenses, Malta - 3 EMIs,

Luxembourg - 2, France- 4 EMIs, Czech Republic 2 EMIs.

And I swear it was a tough process for those luckers who finally got their licenses ;)

Yes in SBSB we do have the open payment license processes in Canada, Singapore, United Kingdom, Lithuania but it's still so long.

What to do? Nothing.

To understand the reality of market before entering it :)

Despite of that crypto startups fill up the market.

I'm sure in some years or even in a year the crypto market will be strictly regulated as well. But crypto is another story and another article ;)