Lithuania
Crypto Exchange & Wallet License

Lithuania VASP Registration
New Requirements from 1st November 2022

Lithuania is now becoming one of the most crypto-friendly and attractive jurisdictions within the European Union.

In comparison to its neighbouring destination Estonia, Lithuanian regulations can be viewed as more flexible in terms of the setup and come at lower on-going cost as there is no specific requirement for onsite personnel. Our extensive experience both in Estonia and Lithuania can be at your disposal if you like to work with professionals.

Our team of experts provide professional solutions for crypto exchange and wallet licenses setup. The company and license setup can be fully processed remotely, with no travel required.

Lithuania Crypto Exchange & Wallet License Advantages

Simplicity
Minimum procedural requirements and bureaucratic burden of the process. The result will be only the company entry into the Register, without the need to obtain supporting documents and other attributes of bureaucracy.

Low costs
You only need to pay for the company registration, the authorized capital, as well as preparation and submission of documents.

Share Capital
Minimum share capital for crypto business (limited liability company) – 2,500 EUR.

Capital Requirements
No capital requirements for licensing purposes.

Taxes
Corporate tax of 15% is one of the lowest rates in the EU.

Local Resident members
No requirements for the residence of the company director and shareholders.

Company’s director (CEO) Citizenship
It is not mandatory for a company’s director (CEO) to have Lithuanian citizenship.

Hiring Local Staff
No requirements for hiring local staff.

Interview with Lithuanian authorities
A company’s KYC/AML officers do not need to go through any type of interview with Lithuanian authorities to get assessed if theirs qualification / experience is suitable for respective company. It is a company’s CEO who shall seek that KYC/AML officers and other employees hold sufficient experience.

Terms
From 3 weeks.

Local Resident members
No requirements for the residence of the company director and shareholders.

Company’s director (CEO) Citizenship
It is not mandatory for a company’s director (CEO) to have Lithuanian citizenship.

Remote registration format
There is an opportunity to register a Lithuanian company remotely.

Lithuania
Types of Crypto Licenses for
Virtual Currency Operations

Cryptocurrency exchange license
A company with such a license is able to exchange digital currency for FIAT or vice versa, or cryptocurrency for another cryptocurrency, receiving a commission for the services provided.

Crypto wallet and custodian services license
A company with such a license may operate customer wallet to store cryptocurrency including generating and storing encrypted client keys.

A company can hold any or both the crypto exchange and wallet licenses. Both licenses granted are controlled by the Lithuanian Financial Crime Investigation Service (FCIS).

Whichever the license you will be interested in, our Business Development Team will help and guide you applying for any of such licenses – Cryptocurrency exchange license and/or Crypto wallet and custodian services license.

Lithuanian
Crypto Company structure

Companies in this cryptocurrency sector are subject to the several requirements, such as:

  • – To apply for a cryptocurrency license, a limited liability company (UAB) must be incorporated in Lithuania to provide both cryptocurrency exchange and/or storage services;
  • – The minimum requirement for a company’s authorised capital is €2,500;
  • – The establishment of a cryptocurrency company can be carried out either in person or remotely by proxy without the need to visit Lithuania;
  • – At least one owner (natural or legal person);
  • – One board member (may also be the owner);
  • – AML Compliance Officer (may be the same as board member);
  • – Company address in Lithuania;
  • – All clients must undergo a background check and identification procedure;
  • – Customer data must be kept for eventual submission to its Regulator;
  • – The company ought to have internal control and risk assessment procedures;
  • – Reporting to Financial Crimes Investigation Service – the Regulator;
  • – Foreigners/non-residents of Lithuania can legally engage in crypto related activities while in their country, once there is no requirement for owners or board members of a cryptocurrency company to be physically present in Lithuania.

Currently, a UAB is one of the most frequently used and most popular type of business entity in Lithuania.

General Provisions

All over the licensing process, the FCIS has the right to request additional information and detailed description of the proposed activity of the crypto currency company.

Crypto license is usually issued only after all required information has been considered sufficient and all requirements have been met.

Any eventual change on the cryptocurrency company structure, after license has been issued, su8ch as address, ownership, board members, beneficiaries, AML officers and others, require respective filing of changes in the local Registrar.

Cryptocurrency companies are regulated by Law on the Prevention of Money Laundering and Financing of Terrorism, in particular Order No V-5 of January 2020.

Be noted that a crypto company has no special reporting requirement to the tax authorities. Accounting must be provided in the same way as for any other Lithuanian company. The basic FCIS requirement is to comply with AML/KYC requirements, such as the check and analysis of client data from a crypto related project or trade and keep them on file for an eventual filing or delivery to the Regulator if so requested.

Cryptocurrency Companies in Lithuania
Taxation

Services provided and accounts paid in virtual currencies are subject to normal VAT rules.
Virtual currency exchange services are not subject to VAT.
The cryptocurrency company’s profits are taxed at a rate of 15%. A micro company with less than ten employees and less than 300,000 euros of gross annual income may be taxed at a reduced corporate tax rate of 0-5%.
Income tax (WHT) 15% is levied on distributed profits (dividends paid).

Procedures to apply for a Crypto License in Lithuania

– UAB company formation or purchase of a shelf/readymade company for application purposes – it usually takes around 5 business days;
– Taking care of all information and documents for application purposes – approx. up to 7 business days;
– The application for license issuance will be processed by FCIS within 20 working days from the date application has been submitted.

Pricing for Crypto License in Lithuania

TBA is ready to provide you excellent solutions for crypto exchange and wallet licenses, inclusive the possibility to process crypto license application remotely, with no physical presence required in Lithuania.
Our Business Development Team will take care of all legal procedures on your behalf.
For more information or detailed offer specific to your own project, please contact us.

Cryptocurrency License
Documents required for application purposes

– Valid copy of passports of company officers;
– Power of attorney – should you decide to go for a remote application;
– Company detailed activity description;
– Curriculum Vitae showing business experience and professional expertise of all officers directly engaged on the crypto related project;
– Website address where cryptocurrency services will be offered;
– Criminal records (not older than 3 months) for owners, board members, final beneficiaries (UBO) and AML officers of the company;
– If required by FCIS, data of all ultimate beneficial owners (UBO);
– An AML officer is absolutely required; this AML officer for the prevention of money laundering and terrorist financing must show professional experience and an excellent reputation (Lithuanian residence is not compulsory) – according to AML/KYC rules, each licensed company must keep a detailed and up-to-date overview of all customers and transaction.

 

REPUBLIC OF LITHUANIA LAW
ON THE PREVENTION OF MONEY LAUNDERING AND
TERRORIST FINANCING

19 June 1997     No VIII-275     Vilnius
(As last amended on 15 April 2021 – No XIV-249)

Click Here!… to access this official document!

Should you have any question or matter
You would like to discuss or clarify with us

Or

Should you like to receive further Information
About our services and fees,…

Our multi-lingual team of business advisors is happy to assist you with all upcoming questions and issues in relation to your company.

You may call or email us, and we will be happy to assist you in a fast and efficient manner.

You can also come and visit us at our Limassol offices to discuss issues face to face if you prefer. Just arrange an appointment and we will be happy to meet with you.


Licensing Services
Our Company Services
Services we DO and Services we DO NOT DO

Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly registered and licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency business activities.

TBA & Associates Tax Business Advisors Limited does not carry out any sort of Cryptocurrency Business Trade