Investing in cryptocurrencies is not for the faint of heart, yet it is a legitimate investment business. And if you are in favour of the free market, then high deregulation and complete decentralization of the crypto market. As with any other type of investment, getting into the crypto market is not easy. This requires studying the mass of information, discipline and sustainability, as highly liquid and volatile assets have to be dealt with.
But the crypto market has made many rich, helped them diversify their assets. If you truly believe in the idea that the freer the market, the freer the people, then you should turn your attention to the crypto business. And the best way to start a legitimate and deep invasion of cryptocurrency is to get a crypto license in Lithuania.
There are two options:
Lithuania has a progressive corporate taxation system with a maximum rate of 20%. However, its system has one feature that makes it incredibly attractive.
Lithuania has created an excellent environment for conducting fintech business. There is a start-up environment in the jurisdiction where two types of cryptocurrency licenses are introduced – Crypto Exchange (Crypto Exchange Operator License) and Crypto Wallet (Crypto Crypto Wallet Operator). The current regulation significantly simplified the procedure for obtaining a crypto license.
The company, branch or registered legal representative has the right to exchange digital currencies and receive a commission for exchange services in addition to providing services for exchange of fiat currency to cryptocurrency and vice versa.
The company, branch or registered legal representative has the right to manage and secure cryptocurrency depository purses belonging to consumers and other third parties.
Companies or subsidiaries may apply for a Lithuanian crypto license. This does not depend on whether the organization is EU resident or non-resident. The Central Bank of Lithuania strives to strictly separate traditional financial institutions and providers of cryptocurrency services – companies that buy, sell, store or exchange cryptocurrencies. However, digital assets can be captured by traditional market participants. The Central Bank has ample opportunities to stimulate the development of non-bank payment services.
An organization operating within the framework of crypto-currency regulation must follow a certain set of requirements. Requirements include:
The variant of Lithuania for obtaining a crypto license is especially attractive, since there are no requirements for local staff. The only requirement for a local employee is an AML/MLRO employee. The work of such an employee may be hourly, for example, 10 hours per month.
Baltic Legal and its extensive professional experience in the Lithuanian market are at your disposal if you consider the possibility of registering a company in Lithuania with a crypto license.
Registration of a limited liability company (in Lithuanian – UAB) can speed up the process and increase the success in obtaining a Lithuanian crypto license.
An AML Policy Officer (Anti-Money Laundering) or a Compliance Officer reporting to FCIS should be different people if your company plans to have both positions.
There is no requirement to have both positions. The person responsible for compliance must be a resident of Lithuania. Shareholders/UBO must be approved by the Investor Evaluation Commission (IAC).
To conduct business with cryptocurrency assets in Lithuania should be clear information control of all clients and transactions in accordance with the rules of AML/KYC, which is carried out by an internal employee of AML/MLRO. The control should include external client identification and implementation of transaction monitoring system.
Lithuania is not the first cryptocurrency. However, most other jurisdictions issue many different licenses depending on the services you provide. Estonia offers a simple licensing environment with one cryptocurrency license and one electronic wallet license. Since Lithuania is a member of the EU, the Estonian crypto license has passport rights, which means that you are free to start your business in other EU countries without additional licensing requirements. If you take your crypto business seriously, Lithuania is your main goal.
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