Cryptocurrency license in Lithuania

Lithuania is one of the most cryptocurrency-friendly and attractive jurisdictions in the European Union. Local financial market participants can legally use it in transactions. The country is actively developing laws aimed at protecting cryptocurrency investors and combating fraud. 

Lithuania is one of the few EU countries that licenses cryptocurrency. A Lithuanian cryptocurrency license is trusted, opening the way to markets in Europe. A foreign investor who receives it will also be able to work officially in the jurisdiction's financial market.

The Lithuanian license covers 2 types of activities:

• Cryptocurrency exchange - services for exchanging fiat for cryptocurrency, cryptocurrency for fiat, and cryptocurrency for cryptocurrency.
• Opening of virtual wallets for storing customers' virtual currencies.

Authorized capital requirements:

To obtain a cryptocurrency license in Lithuania, the amount of authorized capital is 2 500 EUR.

Requirements for legal entities engaged in activities related to cryptocurrency in Lithuania:

• Members of the board or owners of the company must have an impeccable reputation.
  Maintaining and submitting reports.
  Having an AML officer responsible for anti-money laundering compliance.

To avoid losing their license, cryptocurrencies must operate impeccably. Their operations are monitored by a department that investigates financial crimes (FIU). 

Taxation:

The corporate income tax rate is 15%. 

The rate can be reduced to 0% and 5% if the following requirements are met:

• the average number of employees does not exceed 10;
  income for the tax period does not exceed 300 000 EUR;
  shareholders of the company are only individuals;
  the company must be in operation, the company must not be liquidated/reorganized and the company's shares must not be transferred to new shareholders for at least 3 tax periods.

The rate of tax on dividends is 15%.

The standard rate of VAT is 21%. Reduced rate of 9% and 5%.

Stages of acquiring a license in Lithuania:

• company registration;
• opening of the account for the deposit of the authorized capital;
• payment of the registered capital; 
• submission of documents to obtain a license;
• getting a license;
• opening an account for a company.

It is not easy to register a company and obtain a license in Lithuania on your own, without the help of professionals. The country is an active participant in a program aimed at fighting fraud and money laundering. That is why the laws are constantly toughening.

IT OFFSHORE specoalists know all about the latest trends in the country's crypto market. They will advise and accompany you at every stage of obtaining a license in Lithuania.