Cryptocurrency License in Lithuania: All You Need to Know
What Types of Companies Is It Important to Obtain a License for?
As far as the types of crypto companies that require licensing, there are certain different segments in the international market. If you choose to go the legal route and make sure that your business is fully licensed in the country, you will be at a better advantage.
These are the types of companies that need to receive a crypto license Lithuania:
- Readymade crypto business. If you plan on purchasing an already established business, you will be required to get a crypto license for it as well.
- NFT marketplace development business. A license is required to operate in the NFT business.
- ICO-related. Either companies that specialize in developing solid ICO campaigns or companies that put forth their initial coin offering in order to attract investors.
- Crypto exchange business. In order to buy, sell, and exchange cryptos, a license will be needed.
- Cryptocurrency mining business. To make a profit, you will need to mine coins and obtain a valid license.
Why Is It Necessary to Legalize a Crypto Project?
Given the constant regulatory changes in the market, it is important to work with a license. It's always easier to abide by the rules. That way, you will be able to generate significant profit and there are no legal risks involved at all.
In Lithuania, fully legalized crypto projects can enjoy a vast array of perks and benefits. This alone makes the decision to remain fully legal a wise move. With no license, your business won't be able to qualify for any of the coveted tax incentives.
What Licenses Are There for Crypto Projects?
Lithuania is home to one of the most technologically advanced states in the world. It offers world-class financial infrastructure, a solid legal framework, and several robust e-commerce platforms. The issued crypto licenses cover two sectors: exchange services and wallet/custodian services.
Each comes with its own set of unique privileges and benefits. To become fully compliant, a company needs to get a crypto license that is suitable for its business.
What Do You Need for a Crypto License in Lithuania?
There are quite a few criteria you should consider. A company needs to submit several documents with all relevant information. That way, you will be able to pass the security measures set by the country.
In order to qualify for a crypto licensee, you will have to submit the following:
- Passport copy issued by your home country;
- PoA (for remote incorporation or company creation);
- Business strategy, detailed business plan;
- Site address for your crypto project;
- Proof of no criminal record for board members, owners, ultimate beneficiaries, and AML officers.
A more detailed and up-to-date list of required paperwork can be found on the official website of the Financial Crime Investigation Service under The Ministry of the Interior of the Republic of Lithuania.
What Are the Stages of Receiving a Crypto License in Lithuania?
The process of obtaining a license takes a couple of weeks. The process begins when the company prepares and sends the requested information or pens an agreement with a company that will handle the licensing process for them.
Once your company receives the official response, it either makes the required adjustments to meet the requirements or enters the final stages of the process.
In general, this process only takes a few weeks and can be carried out remotely. The Financial Crime Investigation Service usually doesn't take very long to investigate the submitted documentation, which means that you are very likely to get the license within the above-mentioned period.
Cryptocurrency Regulations in Lithuania
The government recognizes cryptos as a viable payment method and that is why cryptocurrency startups have their own dedicated licenses. Lithuania is well-known as one of the most crypto-friendly and economically progressive countries in the world and that is reflected in regulatory matters as well.
The regulations imposed by the government are obviously less stringent than what you can get in some other countries. In addition, they are designed to provide digital entrepreneurs and crypto companies with a way to operate legally and without legal issues.
Why Is It Worth Opening a Crypto Company in Lithuania?
Over the last few years, Lithuania has established itself as a secure, modern, and growing country. Its digital economy is booming as the Baltic country remains one of the most favorable jurisdictions for both established and newly emerging tech startups and crypto businesses.
One of the best things about Lithuania is that you can easily work and run your business from your home country. This means that you won’t have to set foot in the country.
The full list of benefits of starting a company in this country is so large that it requires an entire article to cover them in detail. For example, Lithuania has a highly educated workforce and that's only the tenth best thing about it!
What Will Be Required When Registering a Crypto Company in Lithuania?
The stipulations imposed by the Lithuanian Financial Crime Investigation Service are:
- Minimal capital of 2,500 Euros;
- KYC/AML officer on the staff;
- CV of all participants;
- No criminal record;
- Presence of valid documents.
This list wasn't meant to be exhaustive. You can always turn to official government websites to find additional requirements or forms.