The tightening of regulation of crypto-assets is a global trend today. This raises the question for business owners — which jurisdiction to choose to conduct crypto-activities legally and favorably. One such state is Lithuania, known for its friendly attitude towards businesses related to virtual assets compared to neighboring countries.
In addition, many consulting companies try to sell the service of obtaining a regulator’s license to conduct crypto activities. In fact, there is no such requirement in Lithuanian law. However, there are some requirements and procedures for a crypto company.
Requirements for crypto companies in Lithuania
The Bank of Lithuania, the country’s financial sector supervisory authority, has provided a legal definition of cryptocurrency as a means of payment for companies whose activities are related to virtual assets. Such companies are separated from the payment systems and are not considered participants in the Lithuanian financial market.
There are two types of crypto-authorization for companies in the legislation of the Republic of Lithuania:
- cryptocurrency operator
- cryptocurrency depository wallet operator
The most important requirement for such companies is AML procedures (anti-money laundering). Crypto companies are obliged to comply with state requirements to prevent money laundering and terrorist financing, including adopting risk management measures.
- Assignment of an AML officer, an employee who implements the AML procedure
- Development of AML policy by the conditions of Lithuanian law
- Establishing communication with the Lithuanian Financial Crimes Investigation Service, etc
- Only a person with a Lithuanian personal number (i.e., residence permit or citizenship of the Republic of Lithuania) or a resident of other EU countries with residence in Lithuania (which must be confirmed by a corresponding declaration) may become an AML officer
- An AML officer must communicate with the Service only in the Lithuanian language. At the same time, they can perform their functions remotely
- They cannot delegate their duties to third parties
Nota bene: If a company registered in Lithuania is not engaged in crypto-activities, there is no need for an AML officer.
Requirements for the registration of cryptocurrency company in Lithuania
Lithuanian legislation also imposes requirements for the registration of a company whose activities are related to virtual assets:
- A minimum of one director or elected board members (3 or more) are required. There are no requirements for their residence. The number of shareholders of the company from 1 — both legal entities and individuals.
- Substance — the obligatory presence of the legal address (virtual address is enough).
- The minimum share capital is 2500 EUR (also possible to use in the future). However, we recommend having at least 10,000 EUR per founder.
Only compliance with these procedures and requirements can give a company in Lithuania the right to engage in crypto activities.
The most important thing is to pay a lot of attention to AML and KYC procedures (know your customer).
In addition to favorable conditions for crypto-activities, your company will also get:
- very low employee costs
- developed infrastructure
- 15% income tax (5% for small companies up to 10 people and 300,000 euro turnover)
- opportunity to enter the global market
- the possibility of a VAT refund
Our team is ready to provide consultation on these issues. Our business hours: Monday to Friday, 9:00 AM — 7:00 PM. Contact us via WhatsApp, Telegram, or Viber, or submit an inquiry through our online form.
