Cryptocurrency Licence in Lithuania

Frequently asked questions

• Does Lithuania grant a licence for crypto activities?
  Yes, a Lithuanian company may apply for a licence for cryptographic activities under the Order on instructions to deposit operators for virtual currency money monitors and operators for virtual currency exchanges for the prevention of money laundering and / or financing. The purpose of the Law is to prevent the use of Lithuania’s financial system and economic space for money laundering and terrorist financing by increasing the reliability and transparency of the business environment. This Law regulates the principles of assessment, management and hedging of risks related to money-laundering and the financing of terrorism, supervision of responsible persons, obligations arising from the collection and publication of data of beneficial owners, Obligations related to the collection and publication of data on the holders of payment accounts, liability of the persons liable in case of violation of the requirements arising from the legislation.
• How do I get a crypto license in Lithuania?
  In order to get a crypto-license in Lithuania, it is first necessary to establish/ buy a ready-made company in Lithuania. Once the company has been re-registered in your name, you can apply for a cryptocurrency license (Cryptocurrency exchange license or Crypto wallet and custodian services license) by notifying Lithuanian Financial Crime Investigation Service about the crypto activity (FCIS). An electronic member of the board of a company may apply for a cryptocurrency licence in Lithuania. A crypto license in Lithuania is issued for an indefinite period.
• Is it necessary to contact Lietuvos Bankas in cryptographic activities on behalf of a Lithuanian company?
  No, the Lithuanian Financial Crime Investigation Service (FCIS) regulates the activities of cryptocurrency companies in Lithuania
• What are the activities of the crypto license in Lithuania?
  The crypto license in Lithuania is divided into two activities:
  Cryptocurrency exchange license (cryptocurrency exchange license). A company with such a license may exchange the digital currency for FIAT or vice versa, or a cryptocurrency for another cryptocurrency, receiving a commission for the services provided.
  Crypto wallet and custodian services license (cryptocurrency and customized services license). A company with such a license can use the client’s purse to store the cryptocurrency, including creating and storing encrypted client keys.
• How long does it take to get a license?
  The first step for obtaining a crypto-license in Lithuania is the establishment/purchase of a company in Lithuania. It is important to remember that the company’s charter capital (at least 2,500 euros) must be paid. Once you have become the owner of the company, you must notify Registrų centras of the cryptographic activity of the company. Under article 25, paragraph 4 The Law on Prevention of Money Laundering and Financing of Terrorism, a legal person who has started the activities of a virtual currency exchange operator or a virtual currency purse holder within five working days at the latest, must inform Registrų centras about the activity of the service provider of the virtual currency exchange operator and the operator of the virtual currency-custodian purse.By providing this information, the virtual currency exchange operator and the virtual currency custodian’s wallet operator must confirm that he or members of his administration or supervision, and the beneficial owners are familiar with and comply with the requirements of legal acts to prevent money-laundering and the financing of terrorism. Only then can you contact Lithuanian Financial Crime Investigation Service (FCIS) and provide all necessary documents.
• Can non-residents of Lithuania own a crypto company?
  Yes, non-residents of Lithuania may be rightful owners of a Lithuanian crypto company but it is worth bearing in mind that non-residents of Lithuania will have to provide an extended package of documents, including a certificate of no criminal record from the country of residence.
• Can non-residents of Lithuania be part of the board of a Lithuanian crypto company?
  The board of the Lithuanian cryptocurrency company may include non-residents of the country. It should be borne in mind that the board of the virtual currency exchange operator and the operator of the virtual currency depository cannot include natural persons who have previously been convicted of a crime and have a valid criminal record that has not been annulled.
• Is it necessary to have a banking account to obtain a licence?
  Yes, an account with a financial institution registered in Lithuania (one of the Lithuanian banks or the Electronic Money Institution registered in Lithuania) must be opened with a company applying for a crypto license. The company’s authorized capital must be deposited into this account.
• What is the minimum authorized capital for a virtual currency service provider?
  The minimum authorized capital is 2500 EUR. The authorized capital must be paid in full before the application is submitted. It is only possible to deposit the authorized capital for a cryptocurrency company with a deposit from the owner/owners' personal account in the account of the company in one of the banks of Lithuania or Electronic Money Institution registered in Lithuania.
• For how long is a crypto-license issued?
  A crypto license in Lithuania is issued for an indefinite period.
• Is it possible to deposit authorized capital in cryptocurrency?
  No, it is only possible to deposit the charter capital for a cryptocurrency company by a money deposit from the owner/owners' personal account into the account of the company in one of the banks of Lithuania or the Electronic Money Institution registered in Lithuania.
• How is the charter capital of a crypto company paid in?
  The authorized capital is paid by means of a monetary contribution (bank transfer). The owners of the company contribute capital at the nominal value of their share (i.e. corresponding to their share in the authorized capital). Payment is made from the bank account of the member of the board to the bank account of the company in one of the banks of Lithuania or Electronic Money Institution registered in Lithuania.
• What happens next with the money investment in the corporate account of the Lithuanian crypto company?
  The amount contributed can be used for the commercial activity of your company crypto after the Registrų centras of Lithuania confirms the deposit of the charter capital of the company.
• When do you need to deposit capital to open a company and obtain a crypto-license in Lithuania?
  The full payment of the charter capital of the crypto-company (2,500 EUR) is mandatory before applying for a crypto-license in Lithuania. The authorized capital must be paid at the time the company is established in Lithuania. The amount paid can be further used to finance the company’s crypto business in Lithuania.
• What does a crypto company need to apply for a cryptographic license in Lithuania?
  The conditions for applying for a cryptocurrency licence are:

  • Procedural melting and risk assessment procedures
  • Capital paid (at least 2,500 EUR)
  • Availability of KYC/AML officer with impeccable reputation.
  • Certificate of absence of criminal records from all company members
  • CV all project participants with key positions in the company
• Why you should get a crypto license in Lithuania?
  Nothing attracts entrepreneurs like the speed and cost of launching the project, and in Europe, Lithuania is now the most favorable jurisdiction for launching a cryptocurrency project. The legalization of crypto activities in Lithuania will require one or two cryptocurrency licences, which can be obtained within one month, which strengthens its position among the most convenient and preferred jurisdictions for the launch of the blockchain project. The financial costs of the legal part in Lithuania are also significantly lower than in other European countries. A comparison of the European jurisdictions in which cryptographic activity is legalized can be found here.
• Are Lithuanian cryptocurrency companies audited?
  Yes. The physical office can be visited by the regulator at any time to check the documentation and confirm the company’s activities. The regulator can also request information on any client of the crypto project. All clients must have information is held for at least five years from the date of the last transaction and must be available for distribution to the regulator on request no later than two business days.
• Can the director of a crypto company be a non-resident of Lithuania?
  Yes, a director of a company may not be a resident of Lithuania if he possesses the necessary skills and corresponds to the position and has an impeccable reputation.
• What measures to prevent money-laundering and the financing of terrorism are in place in Lithuania?
  The Virtual Currency Deposit Service Provider and the Virtual Currency Exchange Company should take the following measures to prevent money laundering and / or the financing of terrorism: Identification of client/recipient of funds:

  • Determination of whether the client acts on his or her behalf or through a representative
  • If the client acts through a representative, identifying the client’s representative
  • Identification of the recipient - natural person
  • Identification of the client - legal person
  • Identification of the client, beneficiary of the legal entity
  • Collection of information about the client, member of the legal entity
  • Collection of information on the structure of the legal person and the nature of the activity; Collection of information on the purpose and intended nature of the client’s business relationship with the recipient of the funds, whether a natural or a legal person
  • Verification of the identity of the client and the recipient on the basis of documents, data or information obtained from a reliable and independent source
  • Continuous monitoring of the customer’s business relations
  • Regular review and updating of documents, data or information provided in the identification of the client and the recipient of funds
  • If it is impossible to fulfil the requirements for identification of the client and the recipient of funds - suspension of the transaction, and if it is impossible to establish a business relationship, termination of the cooperation
  • Application of customer and recipient identification measures not only to new but also to existing clients of the company (clients who became clients of the virtual currency operator and virtual currency exchange operator before )
  • Suspending suspicious money transactions or cryptocurrency transactions; ~- Notifying suspicious money transactions or FCIS transactions
  • Notice of virtual currency exchange transactions or transactions in virtual currency, if the amount of such monetary transaction or transaction is equal to or greater than EUR 15,000 or its equivalent in foreign or virtual currency, regardless of whether the transaction is in one or more related money transfers
  • A detailed examination of complex or unusually large transactions
  • Storage of information for a certain period of time
  • Appointing officials responsible for implementing measures to prevent money-laundering and / or the financing of terrorism
  • Training of staff
  • Introduction of internal systems to respond promptly to requests from the Financial Crimes Investigation Service through secure channels and to ensure full confidentiality of requests
  • Establish internal internal control policies and procedures
• When are measures to prevent money-laundering and the financing of terrorism applied in Lithuania?
  The virtual currency depository wallet operator and the virtual currency exchange operator must take steps to identify and verify the identity of the client and the recipient: - Before starting a business relationship with the client; - Prior to a single exchange of virtual currency in an amount equal to or greater than EUR 1,000 or its foreign/virtual currency equivalent, whether the transaction is one or more related transactions (The value of the virtual currency is determined at the time of the money transaction Where there is doubt as to the accuracy or authenticity of the identification information previously received by the client and the recipient of the funds; - in any other case where there is a suspicion that there is a risk of money laundering and / or financing of terrorism. The Virtual Currency Depository Wallet Operator and the Virtual Currency Exchange Operator identify the client and the recipient of the funds in accordance with the provisions of Articles 9 to 15 of the Law, applying a risk-based approach, using: - The usual means and procedures for identifying the customer; Additional tools and procedures for customer identification to enhance customer identification; - Simplified means of customer identification and procedures for performing simplified customer identification. - in such cases where the virtual currency depository wallet operator and the virtual currency exchange operator are unable to meet the requirements, In sub-paragraphs 4.1.1-4.1.10 Order on instructions to deposit operators for virtual currency money monitors and operators for virtual currency exchanges for the prevention of money laundering and / or financing, shall refuse to cooperate. If a threat of money laundering and / or financing of terrorism is detected, the Virtual Currency Depository Wallet Operator and the Virtual Currency Exchange Point Operator must notify the Financial Crime Investigation Service of a suspicious money transaction.
• How can Company in Lithuania UAB help in obtaining a crypto license?
  Our company has extensive experience in obtaining cryptocurrency licenses in Lithuania and is ready to accompany you throughout the licensing process. We will help in the establishment or purchase of a company in Lithuania that meets the requirements of the regulator, we will help with drawing up procedural rules and risk assessment, AML/KYC documents. Also Company in Lithuania UAB can help in finding and employing a Lithuanian KYC/AML officer for your company and train it in customer identification requirements under the Law on Prevention of Money Laundering and Financing of Terrorism.It should be noted that the selected employee will be a member of your company only, which is in accordance with the non-competitive clause and will represent it with the regulator. In addition, our employees can choose an office that fully complies with your company’s requirements and help with opening a bank account to deposit capital and open an account for working with crypto exchanges. Company in Lithuania UAB specialists will be glad to keep you up to date with all the latest changes in Lithuanian legislation and are always ready to answer all your questions.
• What difficulties may arise in obtaining a crypto license in Lithuania?
  The most common problem today is the revocation of the licences of crypto companies that, in the process, have changed their owners and have not notified the regulator. Another common problem is the incompatibility of the KYC/AML officer with the position and his inability to properly perform his duties.
• Where can I open a bank account for a Lithuanian crypto company?
  The opening of a bank account for a high-risk company, which is cryptocurrency, is a complex and sensitive issue. It is worth taking into account the fact that not every bank of Lithuania cooperates with companies of such activities, and buying a company with an open bank account is impossible. Our company has partner banks all over Europe that are ready to work with cryptocurrency, and we will be happy to accompany our clients in opening an account. Company in Lithuania UAB offers a wide range of additional services, such as accounting services for cryptocurrency companies, tax advice, financial licenses (EMI, Payment institution) and employment assistance (KYC/AML officer). For us the individual approach to each of our clients is important. We take care of the needs of your business, combining individual order processing as well as professional consultations, reasonable rates and company registration services in Lithuania for customers from all over the world. Besides, Company in Lithuania UAB provides support to entrepreneurs in accordance with the latest innovations of Lithuanian legislation throughout the life of their companies.