In today’s crypto and financial services environment, compliance is not just a requirement — it’s the foundation of legitimacy. For companies operating in and around Europe, licences like EMI (Electronic Money Institution) and CASP under MiCA (Markets in Crypto‑Assets Regulation) have become essential. MiCA, adopted in May 2023, fully applies since December 2024 across the EU. Without proper compliance, businesses face exclusion from regulated markets.
Risks of Non-Compliance
Non-compliance carries steep consequences:
- Under MiCA, penalties can include flat fines starting at €5 million, or up to 12.5% of annual turnover, with maximum fines of €20 million or 5% of turnover for severe breaches, including against individuals.
- A recent report estimates that the average fine for MiCA violations in 2024 was €4.8 million, with total fines across the EU reaching €412 million, and Germany and France leading in enforcement.
- Similarly, crypto businesses were fined over $5.8 billion in 2023 for inadequate AML controls.
- Broader financial institutions also face massive fines — for example, Santander was fined £108 million for AML system failures.
These risks include not only financial loss but also license revocation, criminal liability, and irreparable reputational damage.
Xpaid’s Compliance-First Approach
Xpaid is engineered to navigate this complex landscape:
- We operate as a fully licensed VASP integrating crypto settlement capabilities within a robust legal framework.
- Every client undergoes stringent KYC/KYB checks, full proof-of-funds submission, and ongoing risk monitoring.
- Our internal processes align with AML requirements, including automated risk detection and escalation protocols.
- Under MiCA, as a CASP, Xpaid will meet authorisation criteria enabling EU-wide passporting — providing clients with secure access to regulated services across Europe — and operates with transparency and auditability.
Client Benefits
Clients partnering with Xpaid enjoy:
- Regulatory legitimacy — operating under a recognised and compliant licensed framework.
- Market access — enabling crypto-linked and high-risk businesses to tap into European financial infrastructure.
- Asset security — less risk of account freezes, regulatory action, or sudden shutdowns.
- Scalable growth — a solid compliance backbone allows expansion without compromise.
Learan more about How Xpaid Bridges the Gap Between High-Risk Businesses and European Banks
Compliance as a Growth Driver
Contrary to popular belief, compliance is not a hindrance—it’s a strategic edge. As the EU’s Anti-Money Laundering Authority (AMLA) highlights, crypto assets are now the top [money‑laundering threat] in the region, prompting uniform oversight and more rigorous licensing standards. Clients aligned with these standards gain trust, stability, and a competitive advantage in expanding markets.
At Xpaid, compliance is more than protocol — it’s philosophy. Our ethos of being Legal, Transparent, Secure empowers clients to grow confidently within regulated environments. In a world shaped by regulatory clarity, Xpaid turns compliance into opportunity.
