Crypto License in Lithuania

Requirements for the company

Companies providing services in the cryptocurrency sector must comply with the following requirements:

• Identification procedures and identity checks must be conducted for all clients;
• Regulators should have access to customer data;
• An internal control system and a risk assessment procedure should be in place at the company;
• Compliance with KYC/AML requires a compliance officer
• The Financial Crimes Investigation Service (FCIS) must be notified.

The members of the board of directors as well as the owners of the company must have impeccable reputations and no criminal records.

For foreigners/non-residents of Lithuania to engage in crypto activities legally while abroad, there is no physical presence requirement for crypto company owners and board members.

It is necessary to submit the following documents when applying for a cryptocurrency license in Lithuania:

Advantages

Requirements for company members

• Owners (natural or legal) must be present. In the current state of affairs, members of the company are not restricted based on their nationality or place of residence.
• An owner must be on the board (it can be the same owner). Citizenship and residency are not restricted. Currently, members of the company are not restricted based on their nationality or residence.
• Officer responsible for AML compliance (may be the same owner). Citizenship and residency are not restricted. Compliance with FCIS requirements and professional experience are required.
• An office is located at the company. There is no restriction on the use of a virtual office.
• It is necessary to provide the data of all beneficial owners (UBOs) at the time of application.

Documents needed

In order to review and prepare an application for a cryptocurrency license, the following documentation will be required:

• A valid passport copy from the country of origin
• In the case of a remote start-up and license application, a power of attorney (PoA) is required
• The business model of the company and a detailed description of its activities
• Crypto license participants’ CVs/summaries of experience and education
• Address of website that will offer cryptocurrency services
• A copy of the criminal record of an owner, board member, final beneficiary (UBO) or AML officer (not older than 3 months)

REPORTING REQUIREMENTS

To report to the tax authorities, the cryptocurrency company does not have any special requirements. Lithuanian companies must provide accounting in the same way as other companies. Crypto companies do not need to report to regulators, but FCIS is always able to make prescriptions and requests about their activities. Essentially, the FCIS requires that crypto projects comply with AML/KYC requirements, such as collecting client data from crypto projects and making it available to the regulator upon request.

TAXATION OF VIRTUAL CURRENCY COMPANIES IN LITHUANIA

• VAT does not apply to crypto exchange services.
• VAT is required on cryptocurrency offers
• There is a 15% tax on cryptocurrency benefits. Taxes are applied to small businesses with less than 10 employees and turnovers below 300,000 euros.
• Dividends paid on income are taxed at 15%.

Depending on the type of crypto activity, taxes vary. Taxes are not imposed on tokens acquired through exchange, nesting, or any other means.

Crypto company registration in Lithuania

Registering a cryptocurrency company in Lithuania in 2024 represents a promising direction for entrepreneurs interested in blockchain technology and digital assets. Lithuania attracts with its favourable regulatory environment, transparent legislation and openness to innovation. The article discusses key aspects related to the process of registering a cryptocurrency company in this country, including requirements for founders, the amount of authorised capital and other important points.

Requirements for founders

To register a cryptocurrency company in Lithuania, founders can be both individuals and legal entities, and not necessarily residents of the country. However, it is important to take into account that the founders and management of the company must have an impeccable business reputation in order to successfully pass the licensing process and meet the requirements of local legislation. In addition, AML (anti-money laundering) and KYC (customer identification) checks may be required.

Amount of authorised capital

The minimum amount of authorised capital for registration of a cryptocurrency company in Lithuania is EUR 125,000. Importantly, the funds must be deposited into the company’s account before the company starts its operations. This capital can be used to cover start-up costs and investments in business development.

Licensing of cryptocurrency activities

In order to conduct cryptocurrency activities in Lithuania, companies need to obtain a relevant licence, which is issued by the Lithuanian Anti-Money Laundering Centre. There are two main types of licences:

1. Cryptocurrency Exchange Licence: allows the company to exchange cryptocurrencies for fiat money and vice versa, as well as cryptocurrencies for cryptocurrency.
2. Cryptocurrency wallet services licence: required for companies providing cryptocurrency key storage and management services on behalf of a client.

The process of obtaining a licence includes submitting an application and a set of documents confirming the company’s compliance with Lithuanian legislation, including AML/KYC requirements.

Tax regulation

Cryptocurrency companies in Lithuania are subject to general tax regulation. Corporate income tax is 15 per cent, but a reduced rate of 0-5 per cent applies to small businesses with annual revenues of less than 300,000 euros. It is also important to consider VAT and other tax aspects when conducting transactions with cryptocurrency.

Conclusion

Registering a cryptocurrency company in Lithuania provides unique opportunities to access the European digital asset market. The country offers an attractive regulatory and tax environment for crypto businesses, but success in this area requires careful planning and compliance with all local legal and regulatory requirements. Entrepreneurs are advised to consult with local legal and financial experts to ensure full compliance and optimise their operations in Lithuania.

Crypto exchange licence in Lithuania

A crypto exchange licence in Lithuania opens up a wide range of opportunities for companies to operate in the field of digital assets and provide services related to cryptocurrencies. Lithuania, thanks to its progressive regulatory policy and openness to innovation, attracts many entrepreneurs who want to engage in cryptocurrency business in the European market. In this article, let’s look at the key aspects of obtaining a crypto exchange licence in Lithuania, the services that a company with such a licence can provide, the reporting requirements and the benefits it offers.

Services provided by a company with a crypto exchange licence

A company that has obtained a crypto exchange licence in Lithuania can provide a wide range of services, including:

• Cryptocurrency Exchange: Buy and sell cryptocurrencies for fiat money or between different cryptocurrencies.
• Custodial services: Storing clients’ cryptocurrency assets with a high level of security.
• ICO/STO: Organising and conducting initial coin offerings or tokenised securities for companies.
• Providing APIs for developers: Develop and provide APIs for integration with other services and applications.

Working with clients

A company with a crypto exchange licence can work with both private investors and corporate clients, offering them access to a platform for trading cryptocurrencies, as well as additional services related to investments in digital assets. An important aspect of working with clients is ensuring AML (anti-money laundering) and KYC (customer verification) compliance, which involves thorough identification and verification of clients.

Reporting requirements

Companies operating under a cryptocurrency exchange licence must comply with the regulator’s reporting requirements. This includes providing financial transaction reports, management reports and AML/KYC activity reports. The reporting requirements are aimed at ensuring the transparency of the company’s operations and protecting the interests of clients.

Advantages of obtaining a crypto exchange licence in Lithuania

1. Regulatory clarity: Lithuania offers a clear and understandable regulatory environment for cryptocurrency companies, which reduces legal risks.
2. Access to the European market: The licence gives the company access to the broad market of the European Union.
3. Prestige and credibility: Having a licence increases the confidence of clients and partners, strengthening the company’s reputation internationally.
4. Opportunities for growth and scale: Licensed operations allow the company to expand its services and attract more clients.

Conclusion

Obtaining a cryptocurrency exchange licence in Lithuania requires a thorough approach to preparing documentation, meeting regulatory requirements and ensuring high standards of security and transparency of operations. Despite the challenges associated with licensing, the benefits that come with the process make it an important step towards successful development in the cryptocurrency and blockchain industry. With the right approach and compliance with all necessary requirements, the company will not only be able to gain a foothold in the market, but also significantly expand its capabilities and scope of activities.

Acquire a crypto trading licence in Lithuania

In recent years, Lithuania has emerged as one of the most attractive jurisdictions for cryptocurrency companies due to its innovative regulatory policies and openness to financial technology. The process of obtaining a cryptocurrency trading licence in this country is characterised by transparency and relative simplicity, making Lithuania an ideal location for startups and international companies looking to expand their operations in the European Union. In this article, we take a closer look at the step-by-step process of obtaining the relevant licence, the requirements for founders and the timeframe for setting up a company.

Step 1: Preparatory phase

The first step is to thoroughly review Lithuania’s regulatory requirements for cryptocurrency companies. It is important to familiarise yourself with the legislation governing cryptocurrency activities, including anti-money laundering (AML) regulations and requirements for Know Your Customer (KYC) procedures.

Step 2: Registering a legal entity

To obtain a licence it is necessary to have a registered legal entity in Lithuania. The registration process includes choosing the name of the company, determining the legal address, drafting the articles of association and registration in the Lithuanian Register of Legal Entities.

Step 3: Preparing and submitting documents

At this stage, the company must prepare and submit to the Lithuanian Securities Market Commission a package of documents demonstrating compliance with regulatory requirements. Key documents include:

• A business plan describing the business model, revenue sources and management structure.
• AML and KYC policies demonstrating measures to prevent money laundering and terrorist financing.
• Evidence of the professional suitability of the founders and key personnel, including their biographies and documents confirming experience in the financial sector.

Step 4: Waiting for the regulator’s decision

After submitting all required documents, the Lithuanian Securities Market Commission will review them. This process may take from several weeks to several months, depending on the completeness and quality of the submitted documentation.

Requirements for founders

• Business reputation: Founders and key employees should have an impeccable business reputation with no criminal records, especially those related to financial crimes.
• Financial strength: The company must demonstrate that it has sufficient capital to start and sustain operations.
• Professional Experience: Having a background in finance and an understanding of the cryptocurrency market is a must.

Timing of company incorporation

The overall process from preparation of documents to obtaining a licence can take from 1 to 6 months, depending on the complexity of the documentation and the speed of the regulator’s review of the application.

Conclusion

Obtaining a cryptocurrency trading licence in Lithuania is a promising opportunity for companies seeking to operate in the European market. Following the above steps and requirements will increase the chances of successfully obtaining a licence. It is important to approach the process with full responsibility and attention to detail, as the quality and completeness of the prepared documentation play a key role in a positive decision by the regulator.