How To Get a Cryptocurrency License In Lithuania ?

Investing in cryptocurrencies is not for the faint of heart, yet it is a legitimate investment business.  And if you are in favour of the free market, then high deregulation and complete decentralization of the crypto market. As with any other type of investment, getting into the crypto market is not easy. This requires studying the mass of information, discipline and sustainability, as highly liquid and volatile assets have to be dealt with.

But the crypto market has made many rich, helped them diversify their assets. If you truly believe in the idea that the freer the market, the freer the people, then you should turn your attention to the crypto business. And the best way to start a legitimate and deep invasion of cryptocurrency is to get a crypto license in Lithuania.

• Lithuania has evolved from an all-communist economy with a gigantic inefficient bureaucracy, lack of property rights, and little foreign investment, to a technological hub, has entered the Eastern European market and the global crypto market.
• Lithuania, a member of the European Union, has a legal basis for obtaining a crypto license for a legal entity.
• Regulation of cryptocurrencies in Lithuania is flexible enough to make it an attractive option if the goal is to have a cryptocurrency in the European Union legally.

There are two options:

1. to register a legal entity under your brand
2. to purchase a ready-made solution – an already registered company with a configured crypto authorization (available with and without a bank account).

Advantages of obtaining cryptocurrency license in Lithuania

Lithuania has a progressive corporate taxation system with a maximum rate of 20%. However, its system has one feature that makes it incredibly attractive.

1. All retained earnings are not taxed. This means that all income that is reinvested in your business is tax free. In addition, income from foreign sources is also exempt from taxation, which is fantastic for e-business, where the bulk of income is generated abroad. In addition, Lithuania has signed more than 50 double taxation treaties with different states.
2. Lithuania offers an ideal business environment, thanks to which the country has become one of the world leaders in the field of digital and blockchain technologies, open government.
3. The Lithuanian government and politics traditionally support business, it helps the country maintain its financial and macroeconomic sustainability, it is one of the strongest democracies in the entire EU. It is indeed a free country in the broadest sense of the word: politically, socially and economically.

License to exchange cryptocurrencies or crypto wallet

Lithuania has created an excellent environment for conducting fintech business. There is a start-up environment in the jurisdiction where two types of cryptocurrency licenses are introduced – Crypto Exchange (Crypto Exchange Operator License) and Crypto Wallet (Crypto Crypto Wallet Operator). The current regulation significantly simplified the procedure for obtaining a crypto license.

Cryptocurrency operator license

The company, branch or registered legal representative has the right to exchange digital currencies and receive a commission for exchange services in addition to providing services for exchange of fiat currency to cryptocurrency and vice versa.

Crypto Wallet License in Lithuania

The company, branch or registered legal representative has the right to manage and secure cryptocurrency depository purses belonging to consumers and other third parties.

Cryptocurrency license registration in Lithuania

Companies or subsidiaries may apply for a Lithuanian crypto license. This does not depend on whether the organization is EU resident or non-resident. The Central Bank of Lithuania strives to strictly separate traditional financial institutions and providers of cryptocurrency services – companies that buy, sell, store or exchange cryptocurrencies. However, digital assets can be captured by traditional market participants. The Central Bank has ample opportunities to stimulate the development of non-bank payment services.

Licensing requirements

An organization operating within the framework of crypto-currency regulation must follow a certain set of requirements. Requirements include:

1. Customer identification and verification procedure for all customers, Customer data should be carefully recorded and recorded.
2. Mandatory introduction of an internal control procedure – transaction monitoring.
3. An AML policy officer (anti-money laundering) must be appointed
   Mandatory reporting to the FCIS (Financial Crime Investigation Service) of Lithuania.

The variant of Lithuania for obtaining a crypto license is especially attractive, since there are no requirements for local staff. The only requirement for a local employee is an AML/MLRO employee. The work of such an employee may be hourly, for example, 10 hours per month.

Company registration in Lithuania

Baltic Legal and its extensive professional experience in the Lithuanian market are at your disposal if you consider the possibility of registering a company in Lithuania with a crypto license.

Registration of a limited liability company (in Lithuanian – UAB) can speed up the process and increase the success in obtaining a Lithuanian crypto license.

Additional requirements

An AML Policy Officer (Anti-Money Laundering) or a Compliance Officer reporting to FCIS should be different people if your company plans to have both positions.

There is no requirement to have both positions. The person responsible for compliance must be a resident of Lithuania. Shareholders/UBO must be approved by the Investor Evaluation Commission (IAC).

To conduct business with cryptocurrency assets in Lithuania should be clear information control of all clients and transactions in accordance with the rules of AML/KYC, which is carried out by an internal employee of AML/MLRO. The control should include external client identification and implementation of transaction monitoring system.

Conclusion

Lithuania is not the first cryptocurrency. However, most other jurisdictions issue many different licenses depending on the services you provide. Estonia offers a simple licensing environment with one cryptocurrency license and one electronic wallet license. Since Lithuania is a member of the EU, the Estonian crypto license has passport rights, which means that you are free to start your business in other EU countries without additional licensing requirements. If you take your crypto business seriously, Lithuania is your main goal.