What do companies need to know about getting a crypto license in Lithuania?

Lithuania is included in the list of EU countries that have taken significant steps in creating legislation to regulate the crypto industry. For crypto companies to operate here legally, they must obtain a crypto license in Lithuania. Here it can be done much easier and faster than in other countries, so many organizations prefer to get this registration.

Types of license

In Lithuania, you will be offered to issue 2 types of licenses. The choice depends on what kind of services you want: currency exchange or crypto wallet.

In the first case, you can provide services for exchanging cryptocurrencies for crypto assets or fiat currencies. You can open a crypto wallet with hot or cold storage in the second case.

If you have a large company, you can issue both license types at once.

Primary requirements

If you want to operate legally and obtain a crypto license, then your organization must meet specific requirements:

• The company must employ at least 2 people;
• The company must have a security specialist;
• Authorized capital over 2500 euros;
• The virtual address is registered in this country;
• All clients must go through an identification procedure;
• There should be internal control procedures;
• The company must submit reports to the regulatory body.

There is no need for the owner or board members to be in the country; all business can be done remotely.

The choice of security specialist plays a considerable role. This person must have specialized education, experience in a similar position, and an excellent reputation. He or she must monitor the internal processes in the company and prevent fraud by the founders and employees of the organization. Also, the duties of such a specialist include monitoring the verification of customer data.

The company cannot work with anonymous clients without a license in Lithuania. It must fulfill all KYC requirements, so every client must be verified. Collaboration with clients who have previously been involved in fraud is not allowed.

The license obtained in this jurisdiction is perpetual, but this may be revoked if the company no longer meets the basic requirements or significant errors are found in the submitted reports. If you lose your license, it will be extremely difficult or impossible to get it again.

How is the licensing process going?

The licensing process in Lithuania is much faster and easier than in other EU countries. First, you need to register your own company. To do this, you must submit documents to the regulatory body. The minimum requirement for such a company is only the authorized capital – it must be more than 2500 Euros.

Crypto companies often register as UAB, which means closed joint stock companies in Lithuanian.

You can submit documents during a trip to the capital and in a remote format. The registration process takes 5 days.

As part of the next step, you must prepare the company to file licensing documents. You need to check whether the company meets the requirements and has collected all the necessary documents. On average, this stage takes about 7 days.

Next, you need to submit documents to FCIS, a government agency that regulates crypto companies in the country. Here your application is processed within 20 days.

Why can companies refuse to obtain a license?

The company will be denied a license if the owner or a director member has a previous criminal record. Trust issues are at the forefront here. When processing documents, you must also provide certificates of good conduct for the last 3 years.

Also, if the owner or board members were previously involved in fraudulent activity or high-profile scandals related to the financial industry, this can be a reason for refusal.

Another common reason for refusal is document errors or the absence of essential papers. That is why this issue must be treated as responsibly as possible. A good solution would be to seek the help of qualified lawyers who will control the collection of documents and the correctness of their completion.

One of the essential requirements for companies is a well-thought-out procedure for internal control and customer verification. As a result, if regulators consider your system incomplete, this can lead to problems. Your site must have good protection against scammers and clear restrictions for customers and employees. The security specialist is responsible for the internal control procedure. It is preferable that a large company has a whole department that will perform this work.

If you want to prevent the above problems, contact the specialists of our company for help. They will check how ready your company is for obtaining a license, whether it meets the basic requirements of regulatory authorities and how correctly all documents are filled out. If necessary, our specialists can assume all obligations for obtaining a license.

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