Lithuania Crypto License
Cryptocurrencies are an important part of the modern financial system. However, the use of cryptocurrencies entails certain risks. In response to these risks, Lithuania adopted amendments to its AML law and became one of the first EU countries to regulate cryptocurrency.
This guide explores the benefits, costs, and process of obtaining a Lithuania crypto license.
Benefits of Obtaining a Lithuania Crypto License
Possession of a crypto licence has many pros, such as:
- Access to a vast consumer base and facilitates cross-border transactions within the EU's single market.
- Legal clarity and regulatory stability, instilling confidence among investors and customers.
- Compared to their neighbours, Lithuanian regulations are more flexible regarding the cost of setup and entry into the market.
- Favourable tax regimes and various incentives for startups and innovative enterprises.
Costs and Fees Associated with Lithuania Crypto License
In general, there are such costs and fees as:
- Companies must have a minimum share capital of €125,000 to apply for a license.
- Maintaining the license and company requires ongoing compliance obligations, which may involve other expenses.
It is important to note that there are no state or application fees, which makes the process of obtaining a licence cheaper than in other countries.
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Requirements for Obtaining a Lithuania Crypto License
Specific requirements depend on the type of licence and other factors. In general, the following requirements must be met:
- UAB registration.
- Comply with the minimum share capital requirement.
- KYC and AML compliance.
- Have an appropriate business plan and risk management.
- Successful completion of the fit and proper test by key personnel.
Process of Securing a Lithuania Crypto License
The procedure of obtaining a crypto license in Lithuania involves the following steps:
- Registration of a company.
- Due diligence to ensure compliance with the legal requirements of Lithuania’s crypto regulation and preparation of all necessary documents.
- Submitting a formal application for a crypto license. It’s considered by the Bank of Lithuania and the Financial Crime Investigation Service.
- Next, regulatory authorities conduct a review of the application.
If it is successful, regulatory authorities will grant the license and make some amendments to the Business Register, allowing you to deal with virtual currency in Lithuania and the EU.
FAQ
What criteria must be met to qualify for a Lithuania Crypto License?
How long does it take to complete the application process for a Lithuania Crypto License?
The timeline depends on the complexity of the application and the workload of the Financial Crime Investigation Service and the Bank of Lithuania. Typically, the process may take 1–2 months from the submission of the application to the issuance of the license. However, efficient preparation and timely submission of required documentation can help expedite the process.
