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Lithuania is one of the most sought-after and accessible EU jurisdictions for obtaining authorization for the activities of crypto-currency exchangers and crypto-exchanges. Today, Lithuania, with its simple and understandable cryptocurrency regulation and reputation as a European center for financial innovation and fintech startups, is one of the most attractive jurisdictions in the EU for conducting business related to cryptocurrencies and virtual assets. Getting a Lithuanian crypto-license is the best solution for a start-up crypto-company or crypto-startup, and will also be a reliable tool to reduce or diversify regulatory or jurisdictional risks for existing crypto-exchanges and exchangers, as well as blockchain-projects of other orientation.
Advantages of obtaining cryptocurrency license in Lithuania
Get a crypto license in Lithuania as soon as possible. The procedure for registering a company and obtaining authorization to provide services related to the exchange of cryptocurrency takes an average of 30 to 45 days.
- Simple and convenient corporate structure. To create a Lithuanian crypto-company is enough one founder and director, which can be a resident of any foreign state.
- Full remote procedure. To establish a Lithuanian company and obtain a cryptocurrency license, a personal visit to Lithuania is not required, all actions can be performed on the basis of a power of attorney.
- Minimal financial cost. The cost of obtaining a crypto license in Lithuania, as well as further support and maintenance of the crypto-project is significantly lower than in other cryptocurrency-friendly jurisdictions.
Regulation of the crypto industry in Lithuania
Package of amendments was introduced into the current AML/CFT legislation of the Republic of Lithuania, in the framework of which the range of persons obliged to apply AML/CFT measures was expanded by crypto-exchanges, crypto-exchangers and other blockchainsprojects that provide services for the exchange or storage of cryptocurrencies, tokens and other virtual assets, as well as persons who conduct the initial placement of coins.
Lithuanian crypto license and its capabilities
According to the current legislation, service providers who wish to provide services related to the exchange and turnover of virtual assets are obliged to register their activities and obtain authorization of «virtual currency exchange operator» or «cryptocurrency wallet operator».
Cryptocurrency service providers
Cryptocurrency service providers VASP have the right to provide the following services: virtual currency exchange operator. Service provider providing exchange, purchase or sale of virtual currency for a reward: crypto vs fiat exchange. Service provider that provides clients with services for the storage of cryptocurrency and other virtual assets, as well as the management of internal custom crypto-purses: keeping Cryptocurrency Clients On Internal Custom Wallets (crypto storage service) and making Cryptocurrency Transfers to External Details (crypto transfer service).
Requirements for crypto-currency service providers in Lithuania
Representatives of the crypto-business (VASP) are subject to increased requirements, which are related to the characteristics and high risk of the crypto-currency industry in the context of the fight against money-laundering and the financing of terrorism.
Directors, owners and beneficiaries. All participants in a cryptocurrency company should have an impeccable business reputation and no existing criminal sanctions, including for financial and fiscal crimes.
Internal AML/CFT Policy and Risk Management. Crypto companies are obliged to develop and implement in their internal processes effective AML/CFT measures, which, inter alia, should include and regulate the following circumstances:
- Procedures for identifying the customer and applying precautions to clients;
- Business relationship monitoring and regular updates of customer information;
- Procedures for tracking customer transactions, screening and monitoring of customer activities;
The application of international financial sanctions and restrictive measures;
- Assessment of risks associated with the company’s activities and management of identified risks;
- The procedure for submitting notifications and information to the FCIS;
- Internal controls and compliance with AML/CFT measures.
Competent MLRO / AML officer. The cryptocurrency company must engage a competent AML officer (Compliance Officer), also called MLRO (Money Loundering Reporting Officer), to communicate with the FCIS and report suspicious transactions to the regulator. The candidate for the position of AML-officer must have knowledge and competence in the field of AML/CFT, as well as a knowledge of the Lithuanian language and orientation in the legislation of Lithuania.
Obligation to notify and inform the regulator about suspicious transactions. Every company operating on the basis of Lithuanian crypto-authorization is obliged to notify FCIS about suspicious transactions (suspicious transactions) and non-standard transactions (unusual transactions), as well as to inform FCIS about other nuances and circumstances, Listed in regulatory acts and guidelines. One of the features of the AML-legislation of Lithuania is the presence of the obligation to inform the FCIS of all transactions performed on cryptocurrency or crypto-currency exchangetransactions if the value of the transaction or transaction is or exceeds 15,000 euros or the equivalent amount in other foreign or virtual currency.
Obligation to store customer and transaction data. All Lithuanian crypto-companies, being obliged persons for compliance with AML/CFT measures, are obliged to keep data about customers, information about their transactions and other significant data during the whole period of business relationship with the client, and also within 8 years of their termination.
Procedure for obtaining a crypto license in Lithuania
Obtaining a VASP license in Lithuania consists primarily in submitting a notice to the state bodies on the intentions of conducting activities for exchange or storage of virtual assets and registration of relevant activities in the Commercial Register of Lithuania. As well as other procedures and formalities, a summary of which can be found below:
Company registration in Lithuania. To conduct crypto-currency activities and obtain Lithuanian crypto-authorization, it is best to register a limited liability company. As part of the company’s registration process in Lithuania, it is necessary to deposit a registered capital of at least 2500 euros, for which purpose it is necessary to open a savings account in a local bank or payment system (EMI or PSP).
Development of internal AML/CFT documentation. Development and implementation in the company’s internal processes of effective AML/CFT measures and principles, as well as compilation of assessment of the company’s related risks and policy of management of identified risks, is an important condition for obtaining a license for operations with cryptocurrencies in Lithuania.
Register cryptocurrency activities and virtual assets. The company wishing to obtain a cryptocurrency license in Lithuania is obliged to inform the state authorities of its intentions and to use itself as a «virtual currency exchange operator» and/or «cryptocurrency wallet-depository operator» in the Commercial Register of the Republic of Lithuania and to obtain an appropriate mark on the company’s register card. By submitting the application for registration of the designated activity, the crypto-company and the persons connected with the enterprise confirm that they are aware and undertake to comply with the AML/CFT legislation of Lithuania.
Account opening. Each company that receives a virtual asset exchange service requires a reliable payment solution to make settlements with customers. We offer various opportunities to open operational settlement accounts for crypto projects in banks or payment systems EMI or PSP, loyal to high risk and representatives of blockchain industry.
Involvement of MLRO / AML officer. The main tasks of MLRO / AML-officer are to represent the interests of crypto-business transfer by the regulator (FCIS) and to submit suspicious transactions and transactions to the supervisory authorities. We will help to attract a competent candidate for the position of MLRO in your company.
Informing the regulator of those responsible for AML/CFT measures. Enterprises providing services for the exchange or storage of virtual assets are obliged to notify FCIS in writing and provide personal and contact details to MLRO and the director, As well as other persons responsible for the implementation of legal measures to counter money-laundering and the financing of terrorism.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.