Interest in the crypto industry continues to grow despite the long crypto winter. If you want to take the risk and open your own crypto business, you should get a crypto license in Lithuania. This jurisdiction has a large number of advantages, which we want to talk about in this article.
Which jurisdiction suits you best?
So in which country is it more promising to register your company? After analyzing the market, we concluded that Lithuania is the most suitable. It legalized the issuance of licenses – it is possible to conduct activities for the exchange of virtual currency, for the storage of investments, and for performing various transactions with other companies. In the future, there will likely be cardinal changes in the licensing procedure, which are actively taking place in other European countries, in particular Estonia. Let’s suggest that the most flexible regulation is in Lithuania.
Lithuania is the largest Baltic country with a very reliable and stable economy. In this country, the registration process for obtaining a license to operate a company with virtual currency is simplified as much as possible.
Vilnius is a significant crypto center in Eastern Europe because many different crypto events occur here. The country has many advantages:
- obtaining a permit is more accessible than in other jurisdictions;
- low fees;
- there are no requirements for the residence of the head of the company;
- you can get a work permit as soon as possible;
- simple taxation;
- registration of the company takes place remotely.
This country’s laws related to cryptocurrencies are not simple, but they set pretty strict requirements for preventing fraud, money laundering, and financial terrorism.
How are different types of tokens regulated?
Tokens that do not offer the right to administer and receive profit, in turn, are divided into two types by the legislation governing them.
Some tokens are created only to provide rights to use products and services. The Lithuanian Civil Code controls them. And some tokens are used only for the formation of payments, and they are used for charity. These two types are controlled by anti-money laundering legislation and the detection of illegal transactions with cryptocurrency. All three types of regulation take place by the Laws on the cryptocurrency activities of organizations.
The control of tokens offering the right to administer and receive profit is based on many legal acts and depends on the specifics of the cryptocurrency.
The Securities Act controls tokens created based on these securities. And those related to crowdfunding are controlled by the Crowdfunding Law. The Law on Financial Instruments controls tokens related to financial instruments.
It means that those who desire to register their cryptocurrency company in Lithuania need to know the legislation of this country thoroughly and use it for their specific activities in virtual currency, tax payment, and accounting process, including registration for issuing a license.
Basic requirements for applicants
The state authorities of this country do not set complex requirements for applicants:
- Director – at least one must have higher financial education and managerial experience.
- The company must include 1 to 250 shareholders (individual, legal entity).
- Be sure to have a legal address in the country.
- The amount of the authorized capital – from 12,500 euros.
- Compliance with the AML policy.
In addition, you need to prepare a small package of documents:
- Identity cards of all shareholders;
- Statutory documents of the organization;
- Passport of the head of the organization (managers);
- Statement of no criminal record;
- Power of attorney (for registration);
- Charter of the company;
- Minutes of the meeting of the founders.
We advise you to seek the help of professional lawyers who will help you complete the above documents so that the state authorities do not have a reason to refuse you a license.
The main stages of licensing
To get a work permit, you need to go through a few simple but essential steps:
- Come up with a name for your company, develop a business plan and create the necessary software;
- Register a company in this jurisdiction;
- Open a local bank account and pay fees;
- Prepare the necessary documents and check compliance with the requirements of state authorities;
The above steps take approximately 1 month to comply with the AML policy.