Obtaining a Crypto License in Lithuania
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Loading... - Jocelyn Tailor
- 26 Mar 2025
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Lithuania has become an attractive destination for cryptocurrency businesses due to its favorable regulatory environment. To successfully obtain a crypto license in Lithuania, companies must adhere to specific requirements and follow a structured process. Here are the detailed steps:
1. Minimum Share Capital
Companies must have a minimum share capital of €125,000. This capital must be fully paid before the application process begins. This requirement ensures that the company has sufficient financial backing to operate in the crypto space.
2. Company Incorporation
The business must be incorporated in Lithuania. This involves registering the company with the Lithuanian Register of Legal Entities. The minimum authorized capital for the company is €2,500, which is a separate requirement from the share capital needed for the crypto license.
3. Compliance with Regulations
- Companies must comply with the upcoming Markets in Crypto-Assets (MiCA) Regulation, which will set forth additional requirements for crypto-asset businesses across the EU. This includes:
- Implementing robust anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
- Establishing a clear governance structure and risk management policies.
- Ensuring that all operations are transparent and that customer due diligence is performed.
4. Application Process
The application for a crypto license involves several steps:
i. Documentation Submission: Companies must prepare and submit various documents, including:
- Proof of the minimum share capital.
- Company registration details.
- A detailed business plan outlining the nature of the crypto activities.
- Information about the management team and their qualifications.
ii. Regulatory Review: The Financial Crime Investigation Service (FCIS) in Lithuania will review the application to ensure compliance with all legal requirements.
iii. Ongoing Obligations
- Once licensed, companies must adhere to ongoing regulatory obligations, which include:
- Regular reporting to the FCIS regarding financial activities and compliance with AML/CTF regulations.
- Conducting periodic audits to ensure adherence to internal policies and regulatory standards.
- Staying updated on changes in legislation and adapting business practices accordingly.
5. Tax Considerations
- Companies should also be aware of the tax implications of operating in Lithuania. Engaging with a local tax advisor can help navigate the tax landscape, including VAT and corporate tax obligations.
6. Legal and Professional Support
- It is highly advisable to consult with legal and financial experts who specialize in Lithuanian crypto regulations. They can provide guidance throughout the application process and help ensure compliance with all legal requirements.
By following these detailed steps, businesses can effectively navigate the process of obtaining a crypto license in Lithuania, positioning themselves for success in the growing cryptocurrency market.
