Crypto license in Lithuania

Nearly optimal circumstances have been established in Lithuania for the start of fintech businesses. The promotion of financial technologies and non-bank money transfer is supported by the Central Bank. Additionally improved the environment for the growth of fintech startups and streamlined the license application process. The percentage of fintech businesses has increased by 40% in the last year, and significant worldwide players are showing interest in the Lithuanian market. Despite the fact that Lithuania lacks a comprehensive compliance structure for dealing with cryptocurrencies, it has launched licensing for cryptocurrency exchange companies and preservation for cryptocurrency wallets, making it one of the few EU states to go through the licensing and certification process for the new virtual currency.

Basic types of crypto license in Lithuania

There are two different licenses available in Lithuania for working with cryptocurrencies:

License for Crypto Exchange (Crypto Exchange License). The corporation, or a division of the company, is given the chance to trade digital money in return for a reward. License for the Crypto Wallet Exchange (Crypto Wallet Exchange). In this scenario, the business or a division of the business can control customer bitcoin deposit wallets. From the entire series of activities, we may pick out the trustworthy asset management and financial advisory job styles that are ubiquitous across the board in the financial industry. These operations require standard financial licenses. But in most jurisdictions, it needs a unique license, exactly like operating with cryptocurrency. It may be an electronic license with an electronic signatures in some instances.

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The main feature of crypto license in Lithuania

The operations of conventional financial institutions and cryptocurrency businesses must be kept apart, according to the Lithuanian Central Bank.

In this scenario, regular market participants may be trading virtual assets. Firms or subsidiaries of companies that are both residents and non-residents of the EU may apply for crypto licenses in Lithuania.

The appropriate legal agencies regulate the operations of crypto processors to avoid the legalizing of criminal proceeds. Both the board of directors and the company's shareholders must fulfill the standards of spotless status, such as having no criminal history. In order to obtain a license in Lithuania, a company must currently submit an application to the regulator using the proper form, hire an AML specialist, and pay a fee to the government.

The Lithuanian authority does not examine the company's compliance while licensing cryptocurrency operations, and in 99% of the situations, the customer who applies for a license receives a positive response.

Companies engaged in the cryptocurrency market are required to

All customers must be verified and identified; records and records of customer data must be kept; internal control procedures must be introduced; an officer in charge of enforcing compliance with the policy on trying to counter legalization of proceeds from criminal activity (aml policy) must be appointed; and providing information to the Lithuanian regulator (financial crime investigation service) is required.