Lithuania has embodied the best conditions for business with cryptocurrency in Eastern Europe. The central bank has innovative technologies and helps to develop firms that manage the virtual currency. The scheme for obtaining a Lithuania crypto exchange license is quite simplified. Recently, the number of firms in this area has increased by 45%. Let’s discuss why this jurisdiction is so popular and how to get a work permit here.
Types of licenses
This jurisdiction offers the following types of licenses:
- For a crypto exchange allows organizations to exchange virtual currency for money (and vice versa), taking a commission for this.
- For a deposit wallet manager that stores cryptocurrencies. With such a license, a key with a cipher is created for access by clients who can manage it.
It is possible to obtain two licenses at once.
An organization must have a specialist to ensure that there are no financial crimes or fraud. If your firm does not have one, the best option is to hire a local AML/KYC specialist with experience in this area. According to the new rules, this person must have citizenship in this country.
To expand your business in Lithuania, you must constantly monitor clients, guided by AML / KYC rules and regulations. The controlling organization has the right to request data on the functioning of your company.
To open an account, you must provide several documents you will be asked to – they must all be translated into Lithuanian and certified by a notary.
The minimum authorized capital has recently been increased to 125 thousand euros, although previously it was only 2500 euros. It has led to the fact that it has become much more difficult for small startups to register a business here.
Your organization must employ at least 2 people – one shareholder and one owner. However, if you are a foreigner, you must hire a local director to manage the organization. It would be best if your company also had an office in that jurisdiction.
If you are interested in taxes, there are three of them: VAT, personal income tax, and corporate. A tax is taken from individuals in the amount of 15%.
List of documents
To obtain a work permit, you need to collect a relatively large package of documents, which includes the following papers:
- passports of all employees and founders of your company;
- resumes for all employees;
- power of attorney;
- your business project in expanded form;
- email address for the provision of your services;
- a document certifying the absence of a criminal record.
This package of documents must be certified by a notary. After checking the documents, the process of issuing a license is launched.
The main steps in obtaining a work permit
To obtain a work permit, you will have to go through several important steps:
- you need to choose the name of the company;
- prepare a package of documents;
- register a legal address in Lithuania;
- open an account;
- provide data on managers and shareholders
In the country, firms engaged in cryptocurrency activities are separated from others, but virtual accounts can participate in the market.
Benefits of this jurisdiction
Getting a work permit in this jurisdiction has several significant advantages, among the most important are:
- Lithuania is recognized as a European Fintech center;
- one of the best conditions for creating a virtual currency business;
- a simple set of conditions for registration;
- registration takes a short time;
- there are no requirements for residency of shareholders and managers of the organization;
- there are no conditions for hiring personnel from the local population;
- small corporate tax.
A financial company licensed and registered in Lithuania has advantages over other companies, as it has opened a financial platform at a lower cost. In Lithuania, and in particular, in Vilnius, there is a large number of qualified personnel in cryptocurrency. Many countries and country’s governments approve of management in this economic sphere.
All these advantages, to a large extent, attract investors to Lithuania, giving the opportunity of a financial perspective, being engaged in the virtual currency business.
Money laundering prevention
Lithuania, a country where the AML system works effectively, is a massive complex for countering fraudsters trying to make money dishonestly; they are laundering income. This structure consists of highly qualified specialists and experts with extensive experience, able to solve complex problems and help you gain stability and confidence.
Many different kinds of consultations and courses are held when clients seek help. Getting under dishonest influence in this country is minimized, and this is the guarantee of success for the growth and development of your company.
In Lithuania, conducting such a business is promising, reliable, and as safe as possible.
Rahul is an accomplished technical content writer and editor with over 8 years of experience in the industry. With a keen eye for detail and a deep understanding of complex technical concepts, John has successfully crafted engaging and informative content for a wide range of audiences. His expertise lies in translating intricate technical jargon into easily digestible content that resonates with readers. Throughout his career, Rahul has worked with leading technology companies, helping them communicate their ideas effectively to their target audience.