Mintos has secured its investment firm and electronic money institution licence.
The alternative investment marketplace has had its application approved by the Latvian regulator the Financial and Capital Market Commission.
The approval means Mintos will offer regulated financial instruments known as notes through its platform rather than loans.
Mintos said its regulatory permissions would also allow it to launch other products such as exchange traded funds.
It will also look to setup in different European Union countries.
Read more: Mintos reaches €5bn of funded loans
The change means Mintos investors will have to pass suitability and appropriateness assessments and any unverified accounts will face closure from 19 September.
Users will also have to categorise themselves as a retail client, professional client or eligible counterparty.
“Adjusting the business setup and aligning all of the regulatory and licensing requirements has been a unique journey for us and the regulator,” Martins Sulte (pictured), chief executive of Mintos, said.
“It took us almost two years to get here and I am very pleased to see this come to fruition.
“The work with the regulator has been very constructive, ensuring that we and those that will follow implement best practices when it comes to the regulated setup and investor protection.”