Crypto Licence in Lithuania

CRYPTOCURRENCY LICENCE IN LITHUANIA

At the moment, Lithuania is one of the few member states of the European Union where legal financial transactions with cryptocurrency are possible and there is an official permission to conduct and regulate crypto business from the state. Widely recognized in the traditional financial sector (FIAT) and in the licensing of electronic money, the Lithuanian government also offers virtual currency permission.

There are two types of virtual currency licenses available in Lithuania:

Cryptocurrency exchange licence (cryptocurrency exchange licence). A company with such a licence is able to exchange digital currency for capital or vice versa, or cryptocurrency for another cryptocurrency, receiving a fee for the services provided.

Crypto Wallet and Custodian Licence (Crypto Wallet and Custodian Licence). A licensed company can manage client wallets to store cryptocurrency, including the generation and storage of encrypted client keys.

Lithuania crypto licence

General regulations

In the licensing process, the regulator has the right to request additional information and a detailed/white description of the proposed activities of the crypto company. A licence may be issued only after all necessary information is considered sufficient and all licensing conditions have been met.

Any change in the structure of a cryptocurrency company after obtaining a licence (address of the owner, member of the board, beneficiary, employee AML) requires registration of changes in the registry with a full set of documents.

The application for the cryptocurrency licence is considered and regulated by the FCIS and issued by the Lithuanian Business Register. FCIS is an independent structural unit of the Lithuanian Police and Border Police Department.

Cryptocurrency companies are managed by the Law on the Prevention of Money Laundering and Financing of Terrorism, in particular Order V-5 of January 2020.

Licensing process

In order to apply for a cryptocurrency licence, a limited liability company (UAB) must be established in Lithuania to provide cryptocurrency exchange or storage services. The minimum requirement for the authorized capital of the company is 2500 EUR. The creation of the crypto-company can be carried out completely remotely without the need to visit Lithuania by proxy or using the electronic card of the resident of Lithuania.

The minimum requirement for the cryptocurrency structure of a company is one member, which can be both the owner and member of the board. He is also an employee of the crypto company AML.

The officer/officer in charge of combating money laundering and financing of terrorism should have previous professional experience and an impeccable reputation (residence in Lithuania is not required).

The licensed company must conduct a detailed and up-to-date review of all customers and transactions in accordance with AML/KYC rules. The FCIS Supervisory Authority may make enquiries about the company’s activities, especially regarding compliance with predefined AML/KYC rules.

Requirements for the company

The following requirements are imposed on companies providing services in the cryptocurrency sector:

  • All clients must undergo identity checks and identification procedures;
  • Customer data should be stored with the possibility of being made available to the regulator;
  • The company should have internal control and risk assessment procedures;
  • Having a KYC/AML compliance officer
  • Reporting to the regulator (Financial Crimes Investigation Service).

Board members as well as owners of the company must meet the requirements of impeccable reputation and have no criminal record.

There is no need for owners or board members of a crypto company to be physically present in Lithuania so that foreigners/non-residents of Lithuania can legally engage in crypto activities while in their country.

Application for a cryptocurrency licence in Lithuania will require the following:

  • Apostille copies of passports of all project participants
  • CV of all project participants
  • Virtual or physical office, not territory of Lithuania
  • Board should have a good business reputation (no criminal record)
  • AML officer must prove a good business reputation with no criminal record) and provide
    supporting documentation regarding relevant education, skills and prior experience in
    this field
  • AML officer can be replaced by a third-party KYC/AML supplier with whom a
    cooperation agreement has been concluded
  • There are no restrictions by country of residence of owners/board members if AML is a
    private person.
  • Procedural Rules, KYC/AML Procedures and Business Plan

Requirements for company members

  • At least one owner (natural or legal person). There are currently no restrictions on the nationality or residence of members of the company.
  • At least one board member (may be the same owner). No restrictions on citizenship or residence. There are currently no restrictions on the nationality or residence of members of the company.
  • AML compliance officer (may be the same owner). No restrictions on citizenship or residence. Professional experience and compliance with FCIS requirements is mandatory.
  • The company has an office. The use of a virtual office is permitted.
  • The data of all beneficial owners (UBO) must be provided upon application.

Necessary documents

The following documentation will be required to review and prepare an application for a cryptocurrency licence:

  • Valid copy of passport from home country
  • Power of attorney (PoA) (if the process of opening a company and obtaining a licence takes place remotely)
  • Company business model/detailed activity description
  • CV/Summary of experience and education of all participants in the crypto licence project
  • Website address where cryptocurrency services will be offered
  • Certificate of criminal record from the criminal record (not more than 3 months) for owners, board members, final beneficiaries (UBO) and AML officers

Companies offering licensing services in Lithuania

A legal company that can accompany in the process of obtaining a cryptocurrency licence in Lithuania.

Reporting requirements

The cryptocurrency company has no special reporting requirements to the tax authorities. Accounting must be provided in the same way as for any other Lithuanian company. No special reporting to the regulator is required, but FCIS is always able to make prescriptions and requests about the activities of the crypto company. The basic requirement of the FCIS is to comply with AML/KYC requirements, such as the collection of client data from a crypto project and the possibility of making them available to the regulator on demand.

Taxation of cryptocurrency companies in Lithuania

  • Virtual currency exchange services are not subject to VAT.
  • Services paid in virtual currencies are subject to VAT
  • Cryptocurrency profits are taxed at the rate of 15%. A micro company with less than ten employees and a turnover of less than 300,000 euros can be taxed at a reduced corporate tax rate of 0-5%.
  • Profit tax at 15% is levied on distributed income (dividends paid).

The taxation of transactions in virtual currency depends on the nature of the transactions. There is no direct tax if the token is sold or purchased similarly to security, investment or other currency.

COST OF CRYPTOCURRENCY LICENSE

PACKAGE «COMPANY & CRYPTO LICENSE IN LITHUANIA»

9,900 EUR
PACKAGE «COMPANY & CRYPTO-LICENSE IN LITHUANIA» INCLUDES:
  • Establishment or purchase of a ready-made company
  • Review of the business model and the structure of the Cryptocurrency Company
  • Preparation of legal company documents
  • Assistance in director employment/KYC/AML officer and information State Social Insurance Fund
  • Lease of legal address at Vilnius Business Centre for 1 year
  • Assistance in opening a bank account for cryptocurrency companies
  • Procedural Rules and KYC/AML Company Procedures
  • Providing legal documents, notifications, forms to FCIS and Business Regests of Lithuania
  • Paying company registration government fees
  • Paying government crypto license fees
  • General counselling (5 hours)

*establishment of the company and receipt of the cryptocurrency license is possible to implement completely remotely, without visiting Lithuania.

our team

julia

Julia
Allik

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jekaterina

Jekaterina
Alsmit

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jekaterina

Jekaterina
Smolits

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vasilina cryptocurrency Estonia

Vasilina
Kreida

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kristine

Kristine
Ella

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svetlana cryptocurrency Lithuania

Svetlana
Gertsen

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Diana

Diana
Nossenko

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yulia

Yulia
Parushina

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Diana

Diana
Hamdamova

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aleksandra

Aleksandra
Kulesova

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CONTACT US

At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Tallinn, Vilnius, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.

Company in Estonia OÜ

Registration number: 14153440
Licence number: FIU000186
Phone: + 372 5611 0164
Email: [email protected]
Address: Sepise 1, Tallinn, 11415, Estonia

Company in Lithuania UAB

Registration number: 304377400
Phone: +370 680 21 596
Email: [email protected]
Address: Lvovo g. 25, 7th floor, Vilnius, 09320, Lithuania

Company in Poland Sp. z o.o

Registration number: 38421992700000
Phone: +48 50 633 5087
Email: [email protected]
Address: Twarda 18, 15th floor, Warszawa, 00-824, Poland

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