Cryptocurrencies are already a phenomenon. Neither the Internet, nor social media, nor Instagram alone have been able to attract so much attention that regulators of the world’s strongest economies are imposing so strong and comprehensive controls. As a result, the possession of cryptocurrencies every day becomes less rosy and less promising for money laundering. This is bad or good for you to decide, but it is an inevitable fact that the cryptocurrency business will remain profitable in the future decades. Can you get your share of the profits from this? Of course, and in this you will help crypto license in Lithuania, which is best in this country across Europe.
What you need to know about the cryptocurrency license in Lithuania
First, the concept of a license is conditional, as transactions with cryptocurrencies in Lithuania are regulated by a special permit. Second, while it is easy to obtain permits for cryptocurrency transactions, this market does not operate on the principles of the mafia, but is controlled by the Financial Crimes Investigation Service, which gives confidence in the security of transactions for all participants. Third, the Central Bank of Lithuania clearly shares the notion of traditional financial and cryptocurrency activities, and traditional market players can take virtual currency into circulation.
In what direction can you develop crypto business
Opening a cryptocurrency license in Lithuania is a much simpler way than registering a company in the UK. The favorable background for crypto-activity in Lithuania supports the fact that the world’s largest cryptocurrency exchange Binance operates in this state. So, the cryptocurrency license in Lithuania allows the following two types of activities:
- To carry out activities with convertions of virtual currencies;
- Provide cryptocurrency storage services on special wallets.
To get this permission in the shortest possible time, the most rational would be to use the services of a professional law firm LawRange, which will help to collect a package of documents, quickly process and send an application, get a legal address, Certify all documents at the notary and perform all other manipulations. The only deterrent may be the high cost of a crypto license, but it is inferior to the price of a license for traditional financial transactions and more compensated for by the success of the activity.
Advantages of obtaining a license for virtual assets in Lithuania
The registration of the crypto company in Lithuania opens many new prospects for the development of international business. This license allows business to be conducted throughout the Eurozone, which means that the company has the ability to promote its services or products almost worldwide.
Cryptocurrency license fee in Lithuania
The cost of the service for obtaining a license for virtual assets in Lithuania is 2500 EUR + VAT.
The list of services includes preparation of the necessary documents for the registration and establishment of a new company in lithuania (with personal presence/remote); acquisition of a legal address for the company for 1 year; payment of state duties related to registration and establishment of the company; registration and establishment of the company in accordance with the law;
obtaining the necessary permission for the company to provide services related to virtual assets in Lithuania and internal AML/CFT documentation according to the requirements of the AML/CPFT Law.
Strong points of obtaining a cryptocurrency license in Lithuania
Registration and establishment of the Company in accordance with the law.
The ability to provide services related to virtual assets in Lithuania, i.e. to buy, sell, store, manage, transfer or facilitate the purchase or sale of virtual assets (crypto assets) and other similar services related to virtual assets. Proper and correct internal AML/CFT documentation according to AML/CFT legislation. The possibility of obtaining a license within two months.
Why Lithuania? Six Reasons to Get a Lithuanian Cryptocurrency License
- Free economy. According to the rating, Lithuania ranks 10th in the world in terms of economic freedom. It enjoyed unprecedented financial health, the financial sector was under the control of a credible and effective oversight body, and foreigners enjoyed the same rights as local residents. What results? Over the past five years, the economy has grown by an average of 3.4%.
- Fantastic tax system. Lithuania has the highest corporate tax – 20%, which is the seventh highest rate in the EU. Since last year, a reduced rate of 14% applies if the taxable profit of the company is less than or equal to the average for the previous three years. However, the system has two main advantages: retained earnings are not taxable, which means that all profits reinvested in business are not taxable. In addition, the tax system itself is based on the territorial principle. Thus, the income from abroad is completely tax-free.
- Political stability and transparency are paramount. Lithuania is one of the strongest democracies in the EU. Governments have consistently pursued business-friendly policies and actively supported the implementation of open government and e-government systems. Thanks to this, Lithuania is considered one of the most transparent countries on the planet, maintains a low level of corruption and is a pioneer in the development of public digital services.
- Two licenses, multiple tasks. There are only two licenses: the license of the e-wallet provider and the license for exchange operations with cryptocurrency allow to carry out all major crypto operations. This will save you a lot of headache and the need to get multiple licenses for completely different purposes. These two licenses allow for all major transactions, and can be obtained in about a month. In addition, licenses grant their holders EU passport rights. This means that you can also set up your crypto business in any part of the EU without having to open a branch in another country.
- First-class IT infrastructure. The government has contributed significantly to the creation of IT infrastructure and digital services for the public, such as online voting, registering a business in 15 minutes or paying taxes online in just 3 minutes. There are very few places in Lithuania where there is no wi-fi network. In addition, the country funds special programs for students to develop their IT skills. All of this means it’s the perfect place to do blockchain business in a high-tech environment.
- Simplicity of doing business. Lithuania occupies one of the leading positions in the World Bank report «Doing Business». It is very easy to start and run a business in Lithuania, since the activities of public authorities are generally efficient and transparent, mainly due to the e-government policy. Business registration in Lithuania is three simple steps that can be completed in three days. The Lithuanian e-residency program also allows freelancers and startups around the world to register their company in Lithuania and manage their business at any time convenient for them. Thanks to this program, Lithuania became the country with the largest number of digital startups in the world.
Requirements for applying for a license
When applying for this type of license, the company must meet several requirements. The standard list of requirements is as follows:
- The CEO and shareholder must have no criminal record.
- Paid-up capital of 2,500 euros.
- Appointed by AML/MLRO with relevant education and experience, which is a resident of Lithuania.
Documents and information required for obtaining a license in Lithuania
Identification cards of the director(s) and shareholder(s) of the company. Confirmation of the address (utility bill, etc.) of the director(s) and shareholder(s) of the company. Certificate of criminal record of the director of the company (not older than 3 months).