How to get a cryptocurrency license in Lithuania in 2022
Getting a cryptocurrency license in Lithuania is beneficial. The state has a positive attitude to cryptocurrency and regulates work with it at the legislative level. The country offers cryptocurrency companies to get a license, which helps to structure the business and protect against fraud. The regulator carefully examines the documents, so customers know that companies that have received a cryptolicense in Lithuania can be trusted. Its work is under the control of the Financial Crimes Investigation Service (FCIS), which allows excluding scams.
Peculiarities of Lithuanian cryptolicense
For companies that work with digital currency, Lithuania offers 2 types of cryptolicenses:
- Permission to exchange digital for real money and vice versa;
- Permission to operate a cryptocurrency wallet, which they can use to store and transact digital money.
If a company wants to engage in two activities, you have to take two licenses. The price of one permit is €230 (cheaper than one Estonian cryptolicense (€3 300)), that allows both exchange and digital money storage services.
Requirements for a Lithuanian cryptocompany
In order for a cryptocurrency company to obtain a license, you must register a limited liability company (UAB) with an authorized capital of €2 500 or more.
The company can register remotely, through our representatives. There must be 1 employee who can perform three duties at once:
- AML (anti-money laundering) compliance officer - one must have experience and documents to prove it. Otherwise, it is better to hire an outside specialist.
It is desirable that the structure of the organization has at least 3 board members.
Residency in Lithuania from the owners is not required, but a reliable business reputation is mandatory. Non-criminal record is not necessary if the director was not found guilty of fraud or major scams. The headquarters of the cryptocompany may be located abroad, and an office in Lithuania is not required.
Paperwork to obtain a cryptolicense
To get permission to work with virtual money, the regulator needs to submit the following papers:
- Copies of the owners' documents;
- A business plan, which will describe in detail the work of the company;
- A resume showing the place of work and education of all participants;
- The address of the website that will offer the services.
The regulator may require other papers to be submitted as well. The certificates must be translated into English, notarized, and apostilled.
Lithuania is not only beneficial in terms of the price of the cryptocurrency license, but also in terms of taxes:
- The exchange between virtual currencies is not subject to VAT;
- Corporate tax is 15%. If there are less than 10 employees and gross annual income is less than €300 thousand, the rate is reduced to 0-5%;
- Withholding tax 15%.
After receiving cryptolicense in Lithuania, the organization must keep records of all users, their transactions, taking into account AML/KYC rules. FCIS supervisory authority can check the work of a cryptocompany by sending requests to the appropriate structures, including monitoring internal procedures.