Cryptocurrency license in Lithuania 2021: pros and cons

Cryptocurrency license in Lithuania 2021: pros and cons

Lithuania is one of the few EU countries where you can get a license for cryptocurrency transactions. Today we will talk about the nuances of the procedure, as well as the pros and cons of cryptocurrency activity in Lithuania 2021.

Legal regime of cryptocurrencies in the country

In 2018, Lithuania became one of the most popular countries for ICOs in terms of fees. The EU was afraid the country would be turned into a money-laundering hub. But those fears proved unfounded.

The Lithuanian government controls the crypto-industry, carefully inspecting its participants and developing new regulations that regulate the market. For example, in the summer of 2020. The central bank published a document where it revised its approaches to tokens and cryptocurrency.

The main statements:

  • The term "virtual currency" was replaced with "virtual assets";
  • Foreign investors were allowed to operate in the Lithuanian market by registering;
  • Companies that make initial coin offerings (ICOs) or provide services to Lithuanian citizens who want to invest in cryptocurrency automatically become participants in the country's financial market;
  • The Central Bank allowed professional investors to create investment funds, including virtual assets;
  • ICOs are allowed through crowdfunding platforms.

The Central Bank is not against the financial market participants to partially use cryptocurrency in their work. However, it banned banks and other financial institutions to work with virtual assets i.e. accept payments in cryptocurrency, take / provide loans in it, etc.

Types of cryptocurrency licenses in Lithuania

There are two types of licenses available in Lithuania for cryptocurrency activities:

  • Engage in the exchange of virtual currency for real and digital money;
  • Create and offer virtual wallets to hold ICOs.

Operators must operate with integrity and transparance. Their work is monitored by the Financial Crimes Investigation Unit, FIU.

Cryptocurrency license: how to get one

To apply for a cryptolicense in Lithuania 2021, you must create a limited liability company (UAB). The minimum amount of the authorized capital is 2.5 thousand euros. Travel to Lithuania is not required. We can help you register a company remotely. Registration usually takes 10 business days.

Peculiarities of incorporation

Minimum requirement for the company structure is 1 person (non-resident is acceptable). S/he can simultaneously hold three mandatory positions - a shareholder, director and anti-money laundering compliance officer. The latter position requires experience and a certificate of authorization.  

Documents to get a license

To get a license, you have to pay a registration fee and open a bank account. It is mandatory to provide the following:

  • Address of physical office in Lithuania and virtual office;
  • Detailed information about the actual beneficiary;
  • Copy of passport;
  • Power of attorney;
  • Business plan;
  • Resume (CV) - specify the place of work and education of all company members;
  • Website where the business will be conducted;
  • A certificate of no criminal record of all the people associated with the management of the company. The reputation of the market participants must be impeccable.

All documents listed above must be submitted in English and notarized. Application is considered up to 2 months, if you want to accelerate the procedure - 2 weeks for an additional fee.

After registration

All clients the company will work with must be identified. The operator, once licensed, must record all transactions in a timely and detailed manner in accordance with AML / KYC regulations. The FCIS Regulatory Authority may request information on all trading operations of the company.

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