FCIS Requirements for Crypto-License in Lithuania
A crypto-friendly, attractive jurisdiction in the European Union, Lithuania is now one of the most attractive locations to start a crypto-business.
There are no specific requirements for onsite personnel in Lithuanian regulations, making them more flexible in terms of set-up and lower in ongoing costs.
Is a license needed for your activity?
You need a license if you will offer either of the below services:
- Virtual Currency Exchange – Service where a client exchanges a virtual currency to fiat, fiat to virtual currency, or one virtual currency for another.
- Virtual Currency Wallet – Services that store encrypted keys for their customers, it can be used for storage or transfer of virtual currencies.
Virtual currency is a value represented in digital form that can be digitized, stored or sold and accepted as a means of payment by individuals or entities. The authority that controls the fulfilments of the regulations is called Financial Crime Investigation Service (FSIC)
Information that should be provided when applying for the license:
In order to be listed as a currency exchange operator, a person other than those set forth in Article 9(1) of the Law must submit to the supervisory authority:
- An application, in the form established by the supervisory authority (Annex to the Rules of Administration of the List of Currency Exchange Operators, approved by Resolution No 03-195 of the Board of the Authorities of 21 October 2014 on Approval of the Rules of Administration of the List of Currency Exchange Operators), to include in the List of Currency Exchange Operators, specifying in this List, inter alia, information about the person (name, address of registered office, code, if available).
- Upon filing the application by a foreign financial undertaking, information about the applicant is recorded from the foreign undertaking’s register.
- It is essential to provide information about the person’s participants with qualifying holdings in the authorised capital and/or voting rights, and document that a person’s participants meet the requirements specified in Article 4 of the Law in terms of holding qualifying capital and/or voting rights.
- Article 3(4) of the Law specifies that the person must provide information about his or her heads, as well as documentary proof that the head (or heads) meets the requirements laid out in Article 5(1).
- In accordance with the law on the prevention of money laundering and terrorist financing of the Republic of Lithuania, a description of the internal control system will be implemented to perform the duties related to money laundering and terrorist financing prevention.
A currency exchange operator (Licensed Company) is required to have a Head who is a member of the Board and is responsible for the company’s activities, unless the company (Licensed Company) is also engaged in other activities concurrently with currency exchange.
Article 5(1) of the Republic of Lithuania Law on Currency Exchange Operators prohibits a person convicted of committing a crime related to money laundering or terrorist financing from being a head of a currency exchange operator (Licensed Company).
Currency exchange operators must notify supervisory authorities of their plans to replace currency exchange operators (Licensed Companies) and simultaneously submit information necessary to assess whether the new currency exchange operators comply with the above-mentioned requirements, as determined by the supervisory authority.
Upon submission of the following documents to the Authorities, a nominee for a currency exchange operator (Licensed Company) is granted non-objection:
- A notification of the replacement of the Head.
- A questionnaire filled in by the person applying for the position of Currency Exchange Operator, completed according to the form established in the Annex to the Description of Procedures for the Submission of Information on the Managers of Currency Exchange Operators to the Authorities, approved by Resolution No 03-197 of the Authorities of 21 October 2014 on the Approval of the Description of Procedures for the Submission of Information on the Managers of Currency Exchange Operators to the Authorities.
- Documentary proof that the Head of a currency exchange operator meets the requirements laid down Article 5(1) of the Republic of Lithuania Law on Currency Exchange Operators.
- Document evidencing the person’s identity.
- A new Head of a currency exchange operator can only take up office if the supervisory authority does not object to the nominee for the Head of the currency exchange operator.