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Audio Summary: Lithuania Cryptocurrency Exchange License
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Your Guide to a Cryptocurrency Exchange License in Lithuania

Obtaining a cryptocurrency exchange license in Lithuania can open doors to operating legally in the thriving European crypto market. Whether you aim to launch a crypto exchange, provide custodial wallet services, or explore new crypto-financial products, Lithuania’s licensing framework offers clarity and efficiency for various virtual asset service providers.

Each licensing option has unique benefits and requirements. Our guide will walk you through the essentials of obtaining a cryptocurrency exchange license in Lithuania, helping you find the best fit for your business goals.

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Looking for a crypto license in Lithuania? Our team offers a free consultation and quick responses to help you navigate options in Lithuania and other jurisdictions. Contact us today to start your journey!

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Introduction

Lithuania has emerged as one of the most attractive jurisdictions for starting a cryptocurrency business. With its progressive regulatory environment, clear legal framework, and supportive government policies, Lithuania offers a favorable ecosystem for Virtual Asset Service Providers (VASPs) seeking to operate within the European Union.

At Yourcryptocompany.com, we provide professional assistance and support in obtaining a crypto license in Lithuania. Our expert team can help you navigate the licensing process efficiently, aiming to secure your license within approximately four weeks.

Benefits of Obtaining a Crypto License in Lithuania

  • Favorable Regulatory Environment: Lithuania has implemented clear and transparent regulations for cryptocurrency businesses, aligning with the forthcoming Markets in Crypto-assets (MiCA) regulation of the EU.
  • Access to the EU Market: A Lithuanian crypto license allows you to operate across the European Union and the European Economic Area (EEA), providing access to a vast market.
  • Fast and Cost-Effective Licensing: Compared to other EU jurisdictions, Lithuania offers a streamlined and economical licensing process.
  • No Physical Presence Required: Foreign founders and key personnel are not required to be residents of Lithuania.
  • Reputation and Trust: Operating under a regulated framework enhances your company’s credibility and trust among clients and partners.

Types of Crypto Licenses Available

Lithuania recognizes two main types of crypto licenses:

1. Cryptocurrency Exchange Operator License

Services Allowed:

  • Exchange of cryptocurrency to fiat currency and vice versa.
  • Exchange of one cryptocurrency for another.
  • Earning commissions on the services provided.

2. Cryptocurrency Wallet/Custodian Services License

Services Allowed:

  • Offering custodial services for clients’ cryptocurrency assets.
  • Creating and managing encrypted private keys on behalf of clients.

Additional Services Permitted:

  • Offering custodial services for clients’ cryptocurrency assets.
  • Staking Services: Generate passive income through staking mechanisms on Proof-of-Stake blockchains.
  • Initial Coin Offerings (ICOs): Issue utility tokens and conduct ICOs under regulatory compliance.
  • Crypto Transfers: Facilitate cryptocurrency transfers to third parties as per client instructions.
  • Informational Services: Provide clients with information on balances and transaction histories.

Requirements for a Crypto License

To obtain a crypto license in Lithuania, the following requirements must be met:

Registered Company

  • Legal Form: Establish a Lithuanian private limited liability company (UAB).

Share Capital

  • Minimum Requirement: A registered share capital of €125,000.
  • Contribution Options: There are options to register this capital without immediate full monetary contribution.

Local AML Officer

  • Appointment: Appoint an Anti-Money Laundering (AML) Officer who is a resident of Lithuania.
  • Qualifications: Must have appropriate education, experience, and an impeccable reputation.
  • Role: Responsible for implementing AML policies and liaising with regulatory authorities.

Company Structure

  • Senior Manager: Appoint a director or senior manager responsible for operations.
  • AML Officer: Can be the same person as the Senior Manager if they possess the required AML expertise.

Physical Office

  • Recommendation: While not mandatory, having a physical office in Lithuania is recommended to demonstrate a connection to the local market.

Compliance with AML/KYC Regulations

  • Policies and Procedures: Implement robust AML and Know Your Customer (KYC) policies.
  • Internal Controls: Establish procedures to detect and prevent illegal activities.
  • Customer Identification: Ensure proper customer identification and data storage.

Good Repute

  • Clean Record: Directors, shareholders, and beneficial owners must have no criminal records.
  • Transparency: Provide detailed information about all beneficial owners during the application.

Steps to Obtain a Crypto License

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Essential Steps for Setting Up For Lithuania crypto license

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Essential Steps for Setting Up For Lithuania crypto license

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Step 1

Company Formation (1-2 Weeks)

Documentation Preparation:

  • Collect necessary documents such as passport copies, proof of address, and CVs of all involved parties.
  • Draft the company’s Articles of Association and other required legal documents.

Company Registration:

  • Submit the company registration application to the Lithuanian Register of Legal Entities.
  • Obtain a company registration number and legal address.
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Step 2

Share Capital Contribution

Bank Account Opening:

  • Assist in opening a startup account to deposit the initial share capital.
  • Deposit the required share capital of €125,000 (options exist for deferred contributions).
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Step 3

Compliance Setup

Appoint an AML Officer:

  • Recruit and appoint a qualified AML Officer who is a resident of Lithuania.
  • Notify the Financial Crime Investigation Service (FCIS) of the appointment.

Appoint an AML Officer:

  • Create comprehensive AML and KYC policies in line with Lithuanian regulations.
  • Implement internal controls and risk management procedures.
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Step 4

Licensing Application (2-3 Weeks)

Submit Notification to FCIS:

  • Prepare and submit the necessary documentation to the FCIS to notify them of your intent to provide virtual currency services.

Documentation Includes:

  • Company details and registration documents.
  • AML/KYC policies and procedures.
  • Details of the AML Officer and key personnel.
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Step 5

Regulatory Review

FCIS Assessment:

  • The FCIS will review the submitted documentation to ensure compliance.
  • They may request additional information or clarifications.
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Step 6

License Issuance

Approval and Registration:

  • Upon satisfactory review, the company will be registered as a Virtual Asset Service Provider.
  • The company will be added to the public register of crypto companies.

Estimated Total Timeframe: Approximately 4-6 weeks to obtain the license, with additional time for operational setup.

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Looking for a crypto license in Lithuania? Our team offers a free consultation and quick responses to help you navigate options in Lithuania and other jurisdictions. Contact us today to start your journey!

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Taxation for Crypto Companies

Corporate Income Tax

  • Standard Rate: 15% on profits.
  • Reduced Rate: Small companies with fewer than 10 employees and annual revenue under €300,000 may qualify for a reduced rate of 5%.

Value Added Tax (VAT)

  • Crypto Services: Cryptocurrency exchange services are generally exempt from VAT.
  • Other Services: May be subject to standard VAT rules.

Dividend Tax

  • Withholding Tax: Dividends distributed to shareholders are subject to a 15% withholding tax.

Regulatory Authorities and Compliance

Financial Crime Investigation Service (FCIS)

  • Role: The primary regulatory body overseeing crypto activities in Lithuania.

Responsibilities:

  • Enforcing AML and Counter-Terrorism Financing (CTF) regulations.
  • Reviewing licensing applications and conducting compliance assessments.

Bank of Lithuania

  • Role: Supervises financial markets and ensures stability.
  • Influence: May issue additional guidelines affecting crypto companies.

Compliance Requirements

  • AML/KYC Procedures: Mandatory customer identification and verification.
  • Internal Controls: Establish procedures to detect and prevent illegal activities.
  • Reporting Obligations: Report suspicious transactions and comply with ongoing monitoring requirements.
  • Data Protection: Ensure secure storage and handling of client data.

Frequently Asked Questions

While not strictly mandatory, having a physical office in Lithuania is recommended to demonstrate a genuine connection to the local market and may facilitate smoother operations.

Yes, foreign nationals can be directors and shareholders of a Lithuanian crypto company. However, the appointed AML Officer must be a resident of Lithuania.

Options exist to register the share capital without immediate full monetary contribution. Consult with our experts to explore the available solutions.

The crypto license in Lithuania is issued for an indefinite period, provided that the company remains compliant with regulatory requirements.

Licensed companies can offer cryptocurrency exchange services, custodial wallet services, staking, ICOs for utility tokens, and other related services as permitted by law.

Cryptocurrency transactions are taxed based on their nature. Profits from trading are subject to corporate income tax. Cryptocurrency exchange services are generally exempt from VAT.

There is no mandatory financial audit requirement for crypto companies in Lithuania unless they meet certain thresholds. However, companies must maintain accurate financial records and may be subject to regulatory inspections.

Conclusion

Lithuania presents a compelling opportunity for crypto entrepreneurs seeking to establish a regulated and reputable cryptocurrency business within the European Union. With its clear legal framework, efficient licensing process, and supportive regulatory environment, obtaining a crypto license in Lithuania is a strategic move to access the EU market.



At yourcryptocompany.com, we are committed to guiding you through every step of the process, ensuring compliance, and helping you establish a successful crypto enterprise in Lithuania.


Contact us today to start your journey towards obtaining a crypto license in Lithuania.

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