Crypto License in Lithuania

FREQUENTLY ASKED QUESTIONS

• Are crypto activities licensed in Lithuania?
  Yes, of course. The Lithuanian government grants two types of crypto licences based on the activities the applicant intends to carry out:

  • License for cryptocurrency wallets (CryptoWallet Exchange)
  • Licence to exchange cryptocurrencies (Crypto Exchange Licence)
• What is the process for getting a crypto license in Lithuania?
  The following requirements must be met by applicants in order to obtain a crypto licence in Lithuania:

  • Lithuanian company establishment and registration
  • A minimum of one employee is required for the company
  • The company must have an employee who has good knowledge of KYC and security regulations
  • A Lithuanian address is required for the company
  • KYC procedures must be established by the company
  • It is the company's responsibility to provide the supervisory body with regular reports about its activities and security.
• Can Lithuanian companies engage in crypto activities without contacting the local tax authority?
  That's right. In addition to corporate taxes, crypto companies are subject to other taxes as well. State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania is responsible for reporting their income and collecting taxes.
• How does Lithuania's crypto license work?
  Client keys may be issued to customers by authorized holders of crypto storage wallet licences, and client wallets may be held on their behalf by custodial wallet holders. Exchange services between virtual currencies and fiat currencies may be offered by holders of a Crypto exchange licence for a fee. A virtual currency may also be exchanged for another. It is possible for a virtual asset service provider to obtain both crypto licences in Lithuania if it intends to offer both types of services.
• Is getting a license a long process?
  It takes 30 days to obtain a crypto licence in Lithuania. Occasionally, the process may be delayed due to missing documents.
• Crypto companies can be owned by non-Lithuanian residents?
  That's right. While visiting Lithuania for a limited period of time, you can set up a crypto company via a notary or complete the process entirely remotely. Nevertheless, a trustee must be located in Lithuania who would act on the founder's behalf.
• A Lithuanian crypto company can have members who are not Lithuanian residents on its board?
  In fact, yes.
• Can a license be obtained without a bank account?
  
  It is possible to open a bank account after obtaining a license.
• Can a virtual currency service provider operate with a minimum authorized capital?
  
  Virtual currency service providers must have a minimum authorized capital of 2500 Euros.
• What is the duration of a crypto-license?
  In Lithuania, cryptocurrency licenses are issued indefinitely
• Cryptocurrencies can be deposited as authorized capital?
  
  Crypto payments aren't allowed yet, but some financial service providers are developing more flexible policies. In the future, this option may be introduced.
• A crypto company's charter capital is paid in in what way?
  
  A deposit of authorized capital in Euros (EUR) is required from applicants.
• If you want to open a company and obtain a crypto-license in Lithuania, when do you have to deposit capital?
  
  In order to establish a company in Lithuania, applicants must deposit minimum authorized capital. A company cannot be registered with the local authorities without completing this step.
• What are the benefits of getting a crypto license in Lithuania?
  The country of Lithuania implements technical developments very quickly, and offers excellent conditions for those who want to establish a business and obtain a crypto license. A few of the main benefits are as follows:

  • It is possible to complete the entire process remotely
  • Capitalization requirements are low
  • In just 30 days, the process can be completed
  • There is a 15 percent corporate tax rate, which is lower than those found in many other EU countries.
• Cryptocurrency companies in Lithuania are audited?
  
  In fact, yes. Lithuanian Financial Crime Investigation Service (FCIS) supervises holders of both types of crypto licences.
• Crypto companies can have directors who are not Lithuanian residents?
  
  That's right.
• Are there any measures in place in Lithuania to prevent money laundering and the financing of terrorism?
  
  The internal processes of every crypto company should be monitored by a security expert who ensures that all relevant regulations are followed. Lithuanian Financial Crime Investigation Service (FCIS) supervises and audits all crypto companies.
• Are there any difficulties in obtaining a crypto license in Lithuania?
  
  A trustee must be appointed on behalf of non-residents to establish a company in Lithuania on a remote basis. If a non-resident wishes to do it themselves, they must be present in the country and find a notary who can assist them.
• Can a Lithuanian crypto company open a bank account?
  
  According to a recent change, those who want to establish a company in Lithuania are no longer restricted to local banks. Companies can also open accounts in credit unions and digital banks. A full list of banks and financial institutions that companies can open accounts in is compiled and updated by the Bank of Lithuania.