An organization’s proposed activity can be described in detail in a white paper during the licensing process. Only after all necessary information has been reviewed and all licensing conditions have been met can a licence be issued.
In the event of a change to the structure of the cryptocurrency company after the license has been received (address, owner, board member, beneficiary, AML officer), the registry can be amended with the provision of all required documentation.
Cryptocurrency licence applications are reviewed by the Bank of Lithuania and regulated by the Financial Conduct Authority of Lithuania. The Lithuanian Police and Border Police Department has an independent unit called FCIS.
In particular, Order No V-5 of January 2020 regulates cryptocurrency companies under the Law on the Prevention of Money Laundering and Financing of Terrorism.
Tax authorities do not require cryptocurrency companies to file special reports. As with any Lithuanian company, accounting must be provided. An FCIS agent can always request information about a cryptocurrency company’s activities. FCIS requirements include compliance with AML/KYC requirements, such as collecting client data from crypto projects and making them available to the regulator upon request.
Cryptocurrency exchanges or storage services require a limited liability company (UAB) to apply for a cryptocurrency license in Lithuania. It is necessary for the company’s authorized capital to be at least 2,500 euros. Cryptocurrency companies can be established remotely by proxy, without a visit to Lithuania, or upon a visit to Vilnius.
As a form of business activity in Lithuania, UABs are very frequently used.
Uždaroji akcinė bendrovė (UAB) in translation from the Lithuanian language means Closed Joint-Stock Company. UAB’s statutory capital consists of shares that are available for sale in whole or in part, donation or inheritance. A company must have a minimum of one owner (natural or legal person) and a minimum of one director (natural person).
The steps involved in obtaining a cryptocurrency licence in Lithuania are as follows:
- Company in Lithuania UAB signs cooperation agreement
- Purchase/registration of the company: preparation of necessary documents
- Purchasing/registering the company (takes approximately five business days)
- An application for the license will be prepared for the company (up to 7 business days).
- Upon registration and provision of all required information and documentation, a cryptocurrency license can be obtained.
- From the date of submission of the application, the FCIS processes the application for a license for activity.
PROCEDURE FOR OBTAINING A CRYPTOCURRENCY LICENCE
Documents required for the application
For the review and preparation of a cryptocurrency licence application, the following documentation will be required: