Disclaimer: The text below is a press release that was not written by Cryptonews.com.
Ieva Bakutienė, Licensing Services Manager at “Lewben”, and Gediminas Laucius, Legal & Tax Services Partner at “Lewben”
Lithuania has become one of the world’s first governments to react to the effect of cryptocurrencies on financial markets. Since 2018, Lithuania has provided a welcoming regulatory approach and some year and a half later – passed laws setting up a clear legal environment for virtual asset service providers (VASPs).
Lithuanian Crypto License
It is constantly emphasized that in order to commence crypto related activities in Lithuania it is mandatory to obtain a separate crypto license. However, such perception is misleading, as instead of gaining crypto license – it is necessary to notify competent authorities about crypto activity. Once notification is submitted, crypto operations can be launched. The Lithuanian Financial Crime Investigation Service (FCIS) supervises the activities of crypto wallet operators and crypto exchange service providers. The same business may apply for authorisation of both types of crypto activities and, on average, it takes less than one month to finalize the authorization process.
To be authorized to provide cryptocurrency exchange and/or wallet services, a limited liability company (UAB) must first be established in the country. The required minimum share capital is 2,500 EUR. The company formation process may be completed without a physical visit; it typically takes around ten business days to receive the needed original papers. Typical engagement begins with analysing the target business model, shareholders’ structure, background of the CEO, which allows us to produce a list of essential documents for effective incorporation process.
The Lithuanian Law on the Prevention of Money Laundering and Terrorist Financing (the AML Law) makes VASPs subject to AML…
