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.
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.
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.