Innovation is the future: Crypto license plus company in Lithuania

Finding a country where to get a crypto license is a challenging endeavor. Disruptive tendencies and technologies are rarely welcomed by mainstream players. In this case, traditional financial institutions try to maintain control of transactions thus obtaining their profits. 

Luckily, there are some places that embrace innovation and where you can get a crypto license legally. If you want to conduct a crypto business and make crypto transactions, you must find the ideal place. The Lithuania crypto license, for example, is a great option as this is considered one of the leading e-money jurisdictions (both for Fiat and crypto).

Crypto license in Lithuania

Crypto can be conducted through two different licenses:

• Crypto exchange license: a company in Lithuania exchanges crypto for Fiat or crypto for crypto. They receive a commission.
• Crypto wallet and custodian license: the company manages customers’ wallets. Customers store their cryptocurrency. Clients can also generate and store encrypted keys.

The regulations 

When you apply to get a crypto license in Lithuania, you'll have to submit a detailed description of whatever activity your company conducts. Naturally, you have to meet all the necessary conditions in order to be approved.

Since we're talking about a reputable jurisdiction, you must inform any changes in the company and present the corresponding documentation.

A company with a crypto license in Lithuania is regulated by laws that fight the financing of terrorism and money laundering. The regulating entity is the FCIS, however, the license is issued by the register of Lithuania. It's worth noting that the FCIS is an independent unit that belongs to the National Police and Border Department. 

How to get a crypto license in Lithuania: the process

Applicants must establish an LLC (in Lithuania you’ll find it as a UAB) and this entity will work for both types of licenses. The minimum authorized capital is 125,000 euros and you can set it up 100% remotely. 

When it comes to members, the minimum required is one and this person can be both a board member and the owner. In this case, the person can also act as an AML officer for the Lithuania crypto license plus company. Make sure that the professional you assign has a high reputation and a wide experience in anti-money laundry policies.

Finally, if you want to get a crypto license and maintain it you must keep track of all transactions and customers. They should be conducted according to the AML and KYC regulations. Maintain all records up to date because the FCIS can request details about the company’s activities and clients at any time.

How to get a crypto license: requirements

Besides the regular due diligence and reporting, applicants must:

• Assign one local permanent resident KYC/AML officer.*
• The minimum share capital for a VASP company is €125,000. **
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*Mundo can help you assign an AML officer in 1-2 months.

**The process of minimum capital takes approximately 1 month. Your Mundo expert will contribute the required capital and update the information in the national register (at this time there will be no need for you to make any monetary contribution).

Nonetheless, the reader should notice that there are no conditions when it comes to board members and owners being present in Lithuania. This means that the opportunity is open to foreign citizens as well.

Crypto license plus company: documents

For the company:

• Copies of passports for all the people involved (apostilled).
• CV of each participant.
• Establish a physical or a virtual office.
• All members must have a clean record and an excellent reputation.
• The same goes for the AML officer. The individual must have the right experience and skills.
• The AML duty can be outsourced.
• No residency restrictions (for owners).

For the Lithuania crypto license:

• Certified copy of the passport.
• Power of attorney if the application is submitted remotely.
• The screenshot of activities and business model.
• CV and brief extract of experience and education for each party. 
• The website where the crypto will be exchanged. 
• Police clearance for all participants.

Reporting:

If you get a crypto license in Lithuania, you have no reports and requirements to do before the tax authorities. As a crypto provider, you don't have special reporting conditions: you simply report as any other local company. However, keep in mind that the FCIS may request information about the activities at any time and on demand. Remember to consider the AML and KYC requirements that we mentioned above, applying these processes to your clients and collecting their data which must be available for the regulator at its discretion.

Why choose a Lithuania Crypto license

Corporate taxation 

The corporate tax rate is 15%, but smaller companies can lower this to a zero to 5% rate, as long as they meet certain conditions. 

Dividend tax

Any person who receives dividends is taxed at a 15% rate. There are exceptions when taxes apply only if the individual resides in any EU state or a country with a DTT. Fortunately, this country has more than 55 of these so you can get the best benefits for your company in Lithuania. 

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of TheCryptoArea. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

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