License for cryptocurrency exchange in Lithuania
Lithuania is becoming more and more popular among the member states of the European Union, where legal financial transactions with cryptocurrency are possible, and there is also government regulation that is understandable for businesses.
The legal framework governing the cryptocurrency activities of companies in Lithuania includes Law VIII-275 of June 19, 1997 on the prevention of money laundering and terrorist financing, as well as Order No. V-5, effective from January 2020, ON APPROVAL OF INSTRUCTIONS FOR DEPOSIT NETWORK OPERATORS PREVENTION OF MONEY LAUNDERING AND/OR TERRORISM FINANCING, which contains guidelines for operators of cryptocurrency exchanges and custodial wallets.
There are the following types of license
Crypto Exchange license (Virtual currency exchange operator or Virtualiųjų valiutų keityklos operatorius) or in other words – a service provider for exchanging virtual (crypto) currency for fiat currency
The company gets the opportunity to exchange digital currency, receiving a commission. This type of license makes it possible to provide fiat-to-cryptocurrency, and crypto-to-fiat, and crypto-to-crypto exchange services. Such registration of activity allows the crypto exchange to be managed in a regulated manner.
Cryptocurrency depository wallet operator license
Virtual currency wallet service means a service that generates keys for customers or stores encrypted customer keys that can be used to store and transfer virtual currencies.
Basic requirements for the company
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Authorized share capital |
from 2 500 EUR |
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Taxation |
Corporate income is taxed at a rate of 15%. Smaller companies can take advantage of a reduced corporate tax rate of 0-5%. |
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Requirements for board members and geographical location |
At least 1 shareholder (individual or legal entity). 1 director (can be the same shareholder, but only an individual). AML Compliance Officer. |
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Office availability |
Proof of a local office is required. A company can use a virtual office address |
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Minimum document requirements for applying for a license |
1) An extended resume of the director, members of the board and employees; 2) Certificate of no criminal record for each of the above; 3) Organizational structure of the company; 4) Charter;
5) Detailed business plan describing the activities of the company (preferably with a detailed financial forecast for at least 3 years)
6) AML/KYC internal procedural rules and policies;
7) Confirmation of the contribution of the authorized capital.
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Services offered by us within the framework of obtaining a license.
LEGAL ADVICE ON THE POSSIBILITY OF OBTAINING A LICENSE, TAXATION, OPENING A BANK ACCOUNT
SEARCH AND HIRING EMPLOYEES
FULL LEGAL SUPPORT FOR COMPANY REGISTRATION
ASSISTANCE IN PREPARING DOCUMENTS FOR OBTAINING A LICENSE:
- ✔ legal analysis of the prepared documentation prior to submitting the application;
- ✔ пtranslation and notarization;
- ✔ preparation of a complete set of documents, filling out the application, and support;
- ✔ preparation of procedural documentation in accordance with AML/KYC requirements and other company policies;
OPENING ACCOUNT IN PAYMENT SYSTEM OR BANK
COORDINATION WITH THE REGULATOR IN THE PROCESS OF CONSIDERATION OF THE APPLICATION FOR OBTAINING A LICENSE
FORMING A LEGAL ADDRESS
ACCOUNTING AND LEGAL SUPPORT OF THE COMPANY
Stages of obtaining a license
First of all, it is worth deciding on the direction of your company’s activity, the expected amounts of income and the operations performed in order to correctly calculate all the nuances. From these facts will depend on the size of the initial authorized capital, the amount of the annual fee and additional costs that may arise during the activity.
STAGE 1
REGISTRATION OF A COMPANY, REGISTRATION OF A LEGAL ADDRESS, HIRE EMPLOYEES.
STAGE 2
SELECTION OF THE OPTIMAL FINANCIAL INSTITUTION FOR THE PURPOSE OF OPENING ACCOUNT FOR THE FORMATION OF AUTHORIZED CAPITAL AND OPENING SUCH ACCOUNT.
STAGE 3
PREPARATION OF DOCUMENTS AND OBTAINING A CRYPTOLICENSE.
