Cryptocurrency License in Lithuania

Lithuania provides a supportive and controlled legal environment for virtual asset service provider (VASP) enterprises, with explicit legislation in effect since January 2020. Our on-site attorneys and AML compliance specialists provide organized solutions for crypto exchange and wallet authorization setup. The VASP firm formation may be conducted entirely online, with no trip required.

Vilnius, Lithuania's capital, is a well-known fintech city in Europe, and it is also gaining notice for its crypto exchange service licensing rules. In comparison to its neighboring destination Estonia, Lithuanian rules are more flexible in terms of setup and market entrance speed, while also having lower ongoing operating expenses. As a result, the Lithuanian government has allowed transparent and cost-effective virtual money. It has facilitated trading with cryptocurrencies.

Acquiring a Cryptocurrency License in Lithuania

Even though certain European nations limit crypto operations, people's enthusiasm for cryptocurrency is constant. People desire an appropriate legal framework in which to conduct virtual currency transactions. This atmosphere is provided by regulatory countries such as Lithuania.

Since 2020, Lithuania has had cryptocurrency regulation in place. It creates a legal framework for organizations that provide cryptocurrency exchange and wallet services. In this setting, everything is organized plainly and transparently. In Lithuania, there are two categories of crypto licenses:

• Cryptocurrency exchange license: The company that holds a cryptocurrency exchange license gets compensated for its services. Its service is to convert digital currency to traditional currency and vice versa.
• Crypto wallet and custodian services license: A corporation with a crypto wallet and custodian services license may provide clients with encrypted customer keys to store crypto assets. It achieves this by delivering a crypto wallet to its client.

Since 2020, Lithuania has succeeded to become one of the crypto-friendly countries. Many businesses invested in the nation when the required legal framework was established. The government rigorously enforces vital inspections in the face of money laundering and related techniques.

Crypto License regulation in Lithuania

Companies engaged in the cryptocurrency industry must meet the following criteria:

• All consumers must go through a verification and identification process.
• Customer data should be recorded and accounted for;
• Internal control procedures must be implemented;
• An officer must be designated to ensure compliance with the Anti-Money Laundering Policy (AML Policy).
• Reporting to the FCIS of Lithuania (Financial Crime Investigation Service) is required.

Licensing Process

To get a virtual currency permission license, a limited liability business (UAB) must be established in Lithuania and provide virtual currency exchange or cloud services. The company's permitted capital is at least 2500 euros. The establishment of a crypto corporation might be fully remote, with no purposeful visit to Lithuania via proxy or utilizing the electronic card of a Lithuanian person.

The cryptocurrency structure of a business must include at least one member, who can be both an owner and a member of the board. He also works with the cryptography business AML.

The officer/official in charge of combatting money laundering and terrorism funding must have industrial experience and a flawless reputation (residence in Lithuania is not required).

According to AML/KYC standards, the licensed business should perform an in-depth evaluation of every visitor and transfer. The FCIS (Financial Crime Investigation Services) supervisory authority may conduct investigations into transactions, particularly those involving the AML/KYC requirements.

Requirements for the Company

To avoid the legalization of criminal earnings, the Lithuanian government rigorously supervises the operations of crypto businesses. Legal institutions conduct the necessary audits. In general, the following are the conditions for establishing a firm in the cryptocurrency industry in Lithuania:

• The firm must have an owner, whether a natural or legal person.
• The founder(s) of the firm should have no criminal background.
• At least one person (the firm owner is sufficient) must serve on the board of directors.
• Individuals who will serve on the company's board of directors should not have any criminal history.
• At least one Anti-Money Laundering(AML) Officer must be employed by the firm.
• The company's virtual address in Lithuania must be submitted by the owner or power of attorney.
• All consumers should be subjected to background checks and identification processes.
• Customer information must be maintained by the firm in order to be provided to regulatory authorities.
• The firm should have essential internal control and risk assessment mechanisms in place.

The company's founder or board members do not need to be physically situated in Lithuania. Even non-Lithuanian citizens have the legal right to engage in crypto-related activities in the country.

Procedure for obtaining a Cryptocurrency License in Lithuania

During the licensing procedure, the issuer will have complete control. The regulator may seek extra information regarding the cryptocurrency company's operations. If necessary, the regulator may seek further information in papers. To receive a crypto license in Lithuania, companies must be able to offer complete information.

After obtaining the crypto license, the firm must report if the company structure changes. Assume the company's address, owner, board member, beneficiary, or AML officer has changed. In that scenario, it must be completely recorded and put in the registry.

The Business Register has accepted the application for a crypto license. The Financial Crime Investigation Service (FCIS) regulates controls, and The Bank of Lithuania assesses the application. Furthermore, FCIS is an autonomous division of the Lithuanian Police and Border Police Department.

The corporation that will get a crypto license is not required to make a specific tax statement. Accounting processes are the same as for other Lithuanian businesses. FCIS may conduct inquiries regarding the firm at any time. Furthermore, FCIS expressly undertakes extensive checks on compliance with the KYC requirement.

How to Get a Cryptocurrency License in Lithuania

To apply for a cryptocurrency license, a limited liability company (UAB) must be established in Lithuania. The capital of the firm must be at least € 2,500. There is no need to physically visit Lithuania to create a bitcoin corporation.

• First, you should prepare all the documentation necessary to start the firm.
• The company's creation will take about five business days once the relevant paperwork is submitted.
• The company's owners are required to designate an anti-money laundering officer (AML).
• The AML Officer must be a Lithuanian citizen since they will serve as a liaison between the firm and the government.
• To apply for a cryptocurrency license, applicants must develop a form. The preparation and implementation of AML guidelines will take about seven working days.
• Applicants can apply for a cryptocurrency license once their firm is founded and their documentation is complete.
• FCIS reviews the application within 20 working days of its receipt.

If you have supplied all essential documentation for the cryptocurrency license in full, authorized institutions may finish the application in less time.

Some people, however, may decide to obtain a license rather than deal with all of these formalities.

Documents Required for a Lithuanian Crypto License

The following paperwork will be necessary to examine and prepare an application for a cryptocurrency license:

• A valid copy of your native country's passport
• Power of attorney (PoA) (if the process of opening a company and obtaining a license takes place remotely)
• Company business model/detailed activity description
• CV/summary of experience and education of all participants in the crypto licensing project Website address where bitcoin services will be supplied
• Certificate of criminal record from the criminal record (no more than 3 months) for owners, board members, ultimate beneficiaries (UBO), and AML officials

Advantages of having a Cryptocurrency License in Lithuania

• Quick project completion
• There is no requirement to maintain an office.
• Purchase of an off-the-shelf solution
• Possibility of a totally remote solution

Conclusion

Obtaining a cryptocurrency exchange certificate in Lithuania is an excellent choice for anyone wishing to legally operate within the European Union. Lithuania does not have burdensome standards for applicants and strives to offer easy and suitable operating circumstances for bitcoin businesses.

Work permits allow you to attract more clients while expanding your business in a pleasant manner and avoiding legal complications.

If you have any further questions about the crypto exchange license in Lithuania, please contact a well-reputed cryptocurrency exchange development company therefore, you can get answers to your questions.