Home Business News Licensing of crypto projects in Lithuanian jurisdiction 2022

Licensing of crypto projects in Lithuanian jurisdiction 2022

by John Saunders
26th May 22 3:40 pm

Cryptocoins have great potential, thus, many entrepreneurs today are trying to orient their business to work with digital assets. However, it is forbidden to simply take and start dealing with cryptoactives (for example, accept it as payment for goods and services). First, you need to get a license, that is, a permit document. The latter can be issued in different states. Popular space for this is Lithuania. Due to the fact that this procedure is quite complicated and has many pitfalls, the best and most profitable option for an entrepreneur is a crypto exchange license with which companies can immediately conquer the local market and occupy a solid niche.

After the government bodies of the Republic of Estonia adopted a number of amendments aimed at tightening the requirements for companies that offer services in the field of cryptocurrencies, many entrepreneurs are considering other relevant options for platforms for registering crypto companies. If you want to get a crypto license in Lithuania, you should take into account some nuances.

How to get a permission for cryptoexchange in Lithuania

There are two types of such documents. The first is the license of the exchange operator. It can be obtained if you are engaged in the exchange of crypto assets for fiat funds (dollars, euros, other currencies). After you receive official status, you will have right providing services for such an exchange. In this case, earnings will come from a commission. What percentage to put – you decide. Typically, crypto exchangers set a very small percentage, like 0.01%. Calculate before that your expenses for opening a company and the expected income.

The second type of such a document is the license of the operator of the cryptocurrency depositary wallet. It gives the right to create encryption keys for its clients, which help them keep their funds, calculated in Bitcoins, ethers and other similar alternative currencies, safe.

You can obtain both permits if you intend performing both activities. By the way, businessmen who are not residents of this jurisdiction may also obtain a cryptolicense in Lithuania.

Demands must be met

To obtain a permit, you first need to create a UAB. To do this, a number of demands are met. After enterprise establishment, you need to apply for crypto permission. For this:

  • agree to the requirement to identify (KYC) customers;
  • develop AML policy rules;
  • create your website;
  • in the tax police to issue a permit to conduct operations related to cryptocoins.

Obtaining a cryptocurrency licenses in Lithuania is subject to local law. Recently, this jurisdiction has been considered a rather profitable alternative to the previously popular Estonia. When applying for such permitting, it’s recommended to enlist the support of specialised organisations.

A modern approach to regulation allows EMI to issue electronic money on the blockchain. The use of blockchain technology and other modern technologies in the field of standard finance enables Lithuanian licensed e-money institutions to provide a wider range of services and create competitive advantages compared to companies licensed in other EU spaces and practicing conventional financial institution licensing methods.

European member state is distinguished by the presence of designated goals for the effective development of financial technologies. To resort to professional help is the best solution not only for a beginner, but also for an experienced entrepreneur. This is explained by the fact that specialists are well aware of the entire jurisdiction structure and are well versed in legislative framework nuances.

 

The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.

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