Eu Lithuania Cryptocurrency License and Wallet Service License Application Guide

The Republic of Lithuania (hereinafter referred to as Lithuania) is located on the eastern coast of the Baltic Sea, with Latvia and Estonia to the north, and is called the three Baltic countries, with Belarus to the southeast, the Russian Kaliningrad Oblast and Poland to the southwest, the capital of Vilnius.

Despite being one of the smaller countries in the EU, Lithuania is fast becoming an investment hotspot for fintech companies, and Lithuania offers a friendly and regulated legal environment for virtual asset service provider companies, with clear legislation in place since January 2020. Vilnius, the capital of Lithuania and a well-known fintech capital in Europe, has also received more attention for its regulations on the licensing of cryptocurrency trading services. Compared to neighboring Estonia, regulations in Lithuania are more flexible in terms of setup and have lower ongoing costs as there are no specific requirements for on-site compliance personnel. In the near future, Lithuania will become a hotspot for global financial companies.

Lithuania has a good operator environment

1. There is no special requirement for senior managers to reside in Lithuania.

2. Turnover taxes and fees for business licenses and annual license fees for fintech companies are among the lowest in the EU.

(3) Special visa for non-European Economic Area countries operating innovative businesses in Lithuania.

4. Lithuania has three technology valleys with about 31,500 IT specialists and 14,500 developers.

5, the profit tax is the fourth lowest in the EU Lithuanian cryptocurrency license and wallet service license

Lithuanian crypto company structure and requirements

1. To apply for a cryptocurrency license, a limited liability company (UAB) must be established in Lithuania,

To provide cryptocurrency exchange and/or storage services;

2. The minimum required legal capital of the company is 2,500 euros.

3. At least one owner (natural or legal person), one board member (who may also be the owner), anti-money laundering Compliance officer (which may be the same as the members of the Board)

4. All customers must go through a background check and identification process, and customer data must be retained for final submission to regulatory authorities.

5. The Company shall have internal control and risk assessment procedures; To the Financial Crimes Investigation Service

(The regulator) reports that foreigners/non-residents of Lithuania can legally engage in it in their country

Crypto-related activities, provided that the owner or board member of the cryptocurrency company is not

Need to be in person in Lithuania.

Virtual currency crypto license types in Lithuania

1. Cryptocurrency exchange license

Companies with such licenses are able to exchange digital currency into FIAT, or cryptocurrency into another cryptocurrency, and receive a commission for the services provided.

2. Crypto wallet and hosting service license

Companies with such licenses can operate customer wallets to store cryptocurrencies, including generating and storing encrypted customer keys. Companies can hold either or both cryptocurrency exchange and wallet licenses. Both licenses granted are controlled by the Lithuanian Bureau for the Control of Financial Crimes (FCIS).

Process of virtual currency license application in Lithuania

1. Gather information and prepare documents in which the shareholder or parent company appoints a POA to open a Reserve Bank account and act on behalf of the new owner outside the company's registration. Sign the document at the notary office and send it to Vilnius.

2. Add a registered address;

3. You need to sign the document and send it by post (preferred DHL, TNT).

4. After receiving the documents, we will open a savings bank account for the newly established company, and you will need to transfer 2,500 euros of equity.

5. Upon payment of the amount to the company's account, the share capital will be registered with the public office.

6. Registration with the business Registry of the legal entity takes 3-5 working days.

7. (Optional) Change savings bank account to current account (directors must operate after the company is formed and can be used for any cryptocurrency transactions).

8. Attorney's power of attorney.

9. To prepare anti-money laundering rules, UBO reviews and applies for licenses, thereby fulfilling and complying with the application form for virtual currency authorization。