If your recent commercial objectives in the crypto industry are focused on the European market, it is worth considering Lithuania as a target jurisdiction for this purpose. This state offers advantageous conditions to run crypto platforms but is also considered reputable due to strict compliance requirements. A must-have condition to start a crypto business in this state is to receive a license to manage crypto assets. Prifinance Company provides individual consultations about Lithuanian crypto license emphasizing the background of a particular business case and perspective business objectives. Still, it is possible to introduce some short but informative points about crypto licensing in Lithuania that interested businessmen may consider in advance.
Starting Points to Know about Licensing in Lithuania
Before launching the license application process, it is needed to address many elements required by the law applicable in the industry, including but not limited to the following:
- incorporate a separate legal entity responsible for crypto transactions;
- collect and submit clear and up-to-date(!) information about the company’s founders, shareholders, and future managers;
- find and formalize labor relations with the future managers of a crypto company;
- draft and formalize statutory and compliance documents of a future entity;
- contribute share capital in a specific amount (at least 50% of the statutory requirement but more is better);
- open corporate bank account(s);
- draft the compulsory compliance documentation and internal rules, such as the AML/KYC and data protection policies;
- ensure ongoing monitoring of all transactions carried out within the exchange;
- take care of proper reporting and notifications to the local state bodies, including industry regulators.
The taxation regime is pretty favorable. Some valuable notes at this point:
- corporate tax – 15%
- dividends – 15%.
Obtaining a license is a big step but it is surely not the last expected by the local regulators. In fact, a licensee must ensure ongoing compliance with the demands of the applicable regulation. This measure is related to customer identification in the first turn. A licensee has to apply effective KYC procedures to identify its customers and the origin of their assets utilized to execute crypto transactions. This demand is especially important for a cryptocurrency exchange. Reporting and AML compliance are also very important for the entity’s operation.
How Prifinance Specialists May Help You
If you wish to start and operate your crypto project in Lithuania, Prifinance specialists are ready to consult you more precisely about specific measures needed to realize your business goals, including but not limited to:
- assessing the background of your case and define potential risks for rejection – developing preventive measures to increase the chances of application success;
- collecting all required documents and information about founders, beneficiaries, and future managers of a legal entity;
- choosing the most suitable legal entity type to launch your project and assisting with its registration;
- drafting all required statutory and compliance documents, including the AML/KYC and data protection policies;
- hiring AML officers, local managers and other employees;
- handling all negotiations with the officials of the local regulator;
- opening/closing bank accounts;
- ensuring proper interaction with future customers of your crypto exchange taking into account the demands of the applicable regulation;
- assisting with resolving any other matters that may appear over the course of the future entity’s operation.
Provide the details about your crypto project to get a more precise assessment and individual consultations to the point.