OBTAINING A CRYPTO LICENSE IN LITHUANIA

In order for a cryptocurrency-related business to operate legally in Lithuania, there must be an appropriate license. Currently, the legislation of Lithuania does not have a legal basis that regulates the cryptocurrency market, but there are licensed companies that legally engage in cryptocurrency exchange. It is this country that is one of the first in the European Union, which at the state level has implemented a licensing procedure for transactions with cryptocurrency.

Advantages of a cryptocurrency license in Lithuania

Unlike some European countries, Lithuania has created quite favorable conditions for the registration of companies that have a desire to engage in cryptocurrency.

The Central Bank of Lithuania is doing everything possible to ensure that cryptocurrency-related technologies are constantly developing and that payments are made without problems. That is why, it can be said that Lithuanian legislation regarding cryptocurrency is quite flexible.

Regulation of the cryptocurrency market in Lithuania

Legislation regulating the cryptocurrency market in Lithuania is not simple. It all depends on what rights are granted to issue initial offers. Depending on this, it is divided into two main categories:

• Tokens that do not offer the right to profit. Such tokens are governed by the civil law of Lithuania. That is, they are based exclusively on the right to use, and not to earn a profit or manage them. This category is easier to use.
• Tokens offering the right to profit or the right to manage. This category has a wider range of use, and therefore, in addition to civil legislation, it is regulated by the Law on Combating Money Laundering and Financial Fraud.

Other legislation regulating the use of cryptocurrency in Lithuania:

• Securities Law. This law applies to tokens created taking into account the nature of securities.
• The law on crowdfunding directly regulates cryptocurrency, which is specific to crowdfunding.
• Law on the market of financial instruments. This law regulates those tokens that, upon registration, will be included in the list of financial instruments.

How to get a cryptocurrency license in Lithuania?

First of all, as in any other type of activity, you need to carefully analyze the legal framework that regulates the cryptocurrency market, accounting and taxation.

In Lithuania, there are two types of obtaining a cryptocurrency license:

• Crypto exchange license. This license allows you to legally exchange cryptocurrency for real money or vice versa, as well as cryptocurrency for cryptocurrency.
• Cryptocurrency deposit wallet operator license. This type of license enables its recipient to provide services for virtual storage of cryptocurrency.
• Lithuanian legislation does not prohibit obtaining two types of cryptocurrency licenses at once.

Where to apply?

The authorized body that accepts applications for the issuance of a license is the Service that investigates financial crimes.

Issuance period

The license application is considered within 1-2 months.

Order of receipt

1. The presence of at least one shareholder and one director from the company wishing to obtain a cryptocurrency license at the time of application.
2. Appointment of three board members and an AML compliance specialist (the specialist must have Lithuanian citizenship) who will be responsible for obtaining the license. A board member and a specialist cannot be the same person.
3. The minimum authorized capital must be 2,500 euros.
4. Opening a bank account for cryptocurrency business takes up to two weeks.

Taxation

The main types of tax when conducting activities with cryptocurrency are income tax, value added tax and personal income tax. The standard personal income tax rate is 15%.

Necessary documents

To carry out activities related to cryptocurrency, investors must provide: notarized copies of passport documents of the founders of the company, power of attorney (PoA), information about the business model, resume of each founder of the company, certificates of no criminal record, as well as the address of the website where the services will be offered , relating to cryptocurrency.