What Obstacles Businesses May Face While Registering For Crypto License In Lithuania?

Businesses are interested in new and emerging technologies, like blockchain and cryptocurrencies in general. They make their companies more effective and potentially appealing to a wide audience of clients. While the regulatory base is not fully established yet, many businesses are ready to register for the Lithuania cryptocurrency license, but they have no idea what obstacles they may face on their way to obtaining it and only SBSB Fintech Lawyers are going to help. It is important to explore potential challenges companies might face when seeking a crypto license in this country. Starting with all the requirements.

Problems You May Face While Registering For This License

One of the main challenges that companies may face is meeting the minimum share capital requirement of 125000 EUR. For start-ups or smaller companies, this significant financial burden can be challenging. It is not just a matter of having the funds, but also the need to prove the legitimacy of the source of the capital. Companies must be prepared to provide full documentation proving the origin of the funds, which can be a lengthy and complex process. Among other obstacles:

• Clean criminal records. Lithuanian law requires shareholders, directors, and ultimate beneficial owners to have clean criminal records. While this may seem simple, for international companies or companies with complex ownership structures, it can be a challenge. Obtaining and verifying criminal records from various jurisdictions can be time-consuming and lead to delays in the application process.
• Appointment of a resident for the fight against money laundering and the financing of terrorism. The requirement to have a resident responsible for combating money laundering and terrorist financing can be a challenge, especially for foreign companies. Finding a qualified specialist who is not only knowledgeable about AML/CFT issues but also willing to reside in Lithuania can be difficult.
• Navigating a complex regulatory landscape. Lithuanian cryptocurrency regulations rely on both national laws and EU directives. This dual regulatory environment can be difficult to navigate, especially for companies new to the European market. Companies must comply with both Lithuanian AML and CFT laws and broader EU directives. This complexity can require significant legal advice and result in increased costs and time.

After settling all of these nuances, your business will be ready for the registration of a crypto license in this country.

A Help of Experienced Professionals

Lithuania provides a fairly easy way to obtain a cryptocurrency license, but companies need to be prepared for possible difficulties. The key to success is careful preparation, understanding the rules and often working with experienced specialists from SBSB Fintech Lawyers who will help you through all stages of the application process. Professionals are ready to assist at any moment a business needs it, they only need to contact the organization.

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