Among the European Union nations, Lithuania stands out by providing a specific licensing https://prifinance.com/en/cryptocurrency-license/lithuania-cryptocurrency-license/ and approval process for firms dealing with virtual currencies. While a comprehensive legal structure governing the use of cryptocurrencies hasn’t been fully established, companies engaged in the trading and storage of digital currencies can pursue two distinct licenses:
- Crypto Exchange License: This permits a firm or a subsidiary to trade virtual currencies and earn fees from these transactions.
- Cryptocurrency wallet license: This gives the firm or its affiliate the right to control customers’ wallets to store digital currencies.
Comprehensive Guide to Lithuania Crypto Licensing
Crypto Exchange License
Overview: This allows for the trading of virtual currencies.
Prerequisites for License: Board members and proprietors must have a spotless reputation; adherence to Anti-Money Laundering (AML) policies is mandatory.
Services Provided: Facilitates the transaction of digital currencies while earning transaction fees.
Advantages: Fintech newcomers will find a supportive atmosphere, accompanied by a streamlined process for securing the requisite permits.
Central Bank’s requirement: Activities of traditional financial entities should be distinctly partitioned from those of firms involved in cryptocurrency management.
Cryptocurrency Wallet License
Overview: Oversight of client wallets designated for cryptocurrency storage.
Prerequisites for License: Prospective licensees should present board members and owners of impeccable repute and must adhere strictly to Anti-Money Laundering (AML) policies.
Services Provided: Engage in the administration of wallets for clients to securely store their cryptocurrencies.
Advantages: Start-ups in the fintech sector get access to a favorable environment and a simplified procedure for obtaining licenses.
Central Bank’s requirement: Activities of traditional financial entities should be distinctly partitioned from those of firms involved in cryptocurrency management.
Advantages of Securing a Lithuanian Crypto License
Getting a crypto license in Lithuania comes with several perks:
- It allows the trading and safekeeping of digital currencies.
- Lithuania provides a positive setting for new fintech businesses.
- The process to get the needed licenses is straightforward and simple.
- There’s a clear distinction between regular financial businesses and crypto companies.
- Lithuania strictly follows the Anti-Money Laundering Policy (AML Policy).
- Traditional business players have the chance to engage in the virtual asset market too.
Why You Need to Work with Professionals When Setting Up a Cryptocurrency Exchange Company
Registration of such a business requires a full understanding of technical, financial, and legal aspects. One of the most important stages is the availability of an appropriate license. The specialists of Prifinance have extensive experience in obtaining a crypto license in Lithuania and are always ready to help their clients with this. Thanks to the support of professionals, several issues will be resolved at once:
- Preparation of legal documentation.
- Ensuring that the business meets all the necessary requirements.
- Providing support in the field of taxation and financial planning.
- An audit and internal control of the business will be conducted to ensure compliance with regulatory requirements and transparency.