How To Get A Crypto license in Lithuania: Step-By-Step Guide
Lithuania’s proactive approach toward cryptocurrency regulations is rooted in its commitment to fostering innovation while maintaining international.
Developing a cryptocurrency business in Lithuania has become attractive for entrepreneurs. This is because European nations are progressing and establishing transparent regulatory frameworks.
The region has taken adequate measures to create a supportive environment for the cryptocurrency business, establishing it as one of the most favorable European jurisdictions for crypto enthusiasts like you.
This guide aims to offer a comprehensive explanation of how to receive your crypto license in Lithuania, emphasizing the steps required for starting a crypto business.
Steps To Get A Crypto License
Below-mentioned are tips that will help you receive your cryptocurrency license.
1. Select A Legal Entity
1. Select A Legal Entity
In order to apply for a Lithuania crypto license, you need to develop a legal entity from a limited liability company (LLC). This structure is vital for providing a digital currency exchange or storage service.
Ensure you register your UAB with the Centre of Registers. Here are a few important steps that you need to consider for registration:
- Select an exclusive title.
- Draft and notarize incorporation documents such as Article of Association.
- Appointing a shareholder and a director.
- Paying registration fee.
- Submitting the application form to the Center of Registration.
2. Meet Share Capital Requirements
As per the new legal requirements, effective November 1st, 2022, an enterprise must deposit €125,000 euros as authorized capital.
Hence, this should be compared with just €2,500 euros in the previous days. In spite of this demand, a crypto firm can be included at any time without any commitment concerning authorized capital offered.
However, you would require €125K for the registration process. You can register for a Crypto license with Legalaes and receive your license in a few days.
3. Develop A KYC Policy
To make sure of compliance with AML rules, dedicate a local staff member as your exclusive AML officer.
Therefore, you need to include a comprehensive set of AML or KYC policies, including the following:
- Retention procedure.
- Client identification and verification processes.
- System for monitoring transactions.
- Processes to report suspicious behavior.
4. Submit License Application
Get prepared to file your license application with the Financial Crime Investigation Services (FCIS). Thus, the application must contain:
- Information and data about the legal entity. This includes the incorporation of documents and shareholder data.
- Informative description of the planned commercial activities.
- Information emphasized on compliance officer.
- KYC or AML policies and procedures.
- Verify the local office address as well as the bank account details.
Therefore, it is time to decide what license type you are willing to register for. Here is a list of licenses to help you identify your type and requirement.
- Cryptocurrency exchange license: These companies provide a valuable service by enabling users to access, trade, and manage various types of currencies in a digital environment. Their commission is typically a percentage of the transaction value and is their primary revenue source. This mechanism ensures the company can maintain and improve its services while generating profit.
- Cryptocurrency wallet license: Allows a firm to reserve virtual currencies on a customer’s behalf and control encryption.
- Crypto broker license: Offers brokering cryptocurrency deals.
- Crypto trading license: This is for businesses that want to trade cryptocurrencies directly.
- Crypto exchange license: Authorized cryptocurrency trading by a business enterprise.
- VASP license: This license is for a provider that offers different services related to virtual assets. These can be wallets, ICOs, and many other digitally enabled systems.
5. Wait For The Application Review
The FCIS will review your application within one or two months.
In addition, they might ask for more data or information within this time frame. To avoid delays, it is essential to respond quickly to these interrogations.
6. Receive License
Once the review process has been completed, obtaining a crypto license from the Financial Crimes Investigation Service (FCIS) authorizes the operation as a Virtual Currency Exchange Operator or Depository Wallet Operator within Lithuania.
This license also facilitates operation across Europe, adhering to the Single Market principles of the European Union. Lithuania’s proactive approach toward cryptocurrency regulations is rooted in its commitment to fostering innovation while maintaining international.
Summing Up
Establishing a cryptocurrency business in Lithuania includes navigating a clear and well-structured regulations landscape designed to promote transparency and security.
So, when you adhere to legal requirements and maintain a robust compliance framework, you can leverage Lithuania’s environment to build and grow its crypto firms.
Similarly, we suggest you seek guidance from a professional regarding whether you need a CASP license or another option.
