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Obtain Crypto Exchange and Wallet License in Lithuania

Crypto Exchange and Wallet License in Lithuania

Crypto Exchange License and Wallet License
Lithuania offers a friendly and regulated legal environment for crypto exchange and crypto wallet services provider companies, with clear regulations in place since 2020. The company formation and obtaining a license in completely remotely, without need to travel to Lithuania.
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Timeframe: around 3 months

Minimum paid up capital: EUR 2,500.00

Overview

To apply for the authorization, you need incorporate (register) separate Lithuanian entity (company) and prepare the necessary policies necessary for the provision of virtual currency related activities, implement AML/KYC control measures. Members of the Management Board as well as Ultimate Beneficial Owners (UBO’s) of the company need to meet the requirements of impeccable reputation – they cannot be sentenced for infringements related to private ownership, economic and business order, financial system, civil service or public interest.

There is no requirement for CEO and executive board members to be based in Lithuania/Europe.

Virtual currency exchange and Virtual wallet service providers are supervised by Financial Crime Investigation Service (FIS).

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Facts & Info for Crypto Exchange and Wallet License in Lithuania

Notable features
Procedure
Documents Required

General information

Company structure

  • At least one shareholder (natural person or legal entity, no restrictions with regards to citizenship or residence)
  • At least one director (foreign residents are allowed)

Confidentiality

  • Beneficial owners' details – disclosed to the Authorities
  • Shareholders' details – part of public record
  • Directors' details – part of public record

Taxation

  • Virtual currencies exchange services are not subject to VAT.
  • Services invoiced (e.g. sales invoices) in virtual currencies are subject to regular VAT rules.
  • Corporate profits are taxed at 15%. Small companies with fewer than ten employees and less than 300 000 EUR in gross annual revenues can benefit from reduced corporate tax rate of 0-5%.
  • Withholding tax 15% is charged on gross dividends.

Accounting requirements 

  • Filing annual report is obligatory
  • Accounting records shall be kept in Lithuania

Secretary - Required

Registered office - Local office setup needed. Virtual office accepted.

Compliance Officer

The duties of a Compliance Officer (CO) include:

  • organisation of the collection and analysis of information referring to unusual transactions or transactions or circumstances suspected of money laundering or terrorist financing, which have become evident in the activities of the obliged entity;
  • reporting to the FCIS in the event of suspicion of money laundering or terrorist financing;
  • periodic submission of written statements on compliance with the requirements to the management board;
  • performance of other duties and obligations related to compliance with the requirements.

The requirements set by the FCIS for a Compliance Officer (CO) include:

  • only a person who has the education, professional suitability, the abilities, personal qualities, experience and impeccable reputation required for performance of the duties of a CO may be appointed as a CO.
  • the company must organize specialized training on money laundering and / or terrorist financing prevention measures for their employees, especially those who work directly with customers and their transactions.

In order to obtain a license, the following steps will be carried out:

  • Preparation of application forms
  • Collection and review of documents in accordance with the legislation requirements
  • Incorporation of the company
  • License application with the Regulator

In order to obtain license, Offshorelicense will fill all necessary application forms and also acquire apostilled corporate documents.

For that reason, please provide us with the following documents.

For the company:

(Each beneficial owner, shareholder, director, AML Officer)

  • Internal control rules of the company
  • Internal procedure rules of the company
  • Webpage address
  • Information of the person in charge of provision of services
  • Description of planned business model and licensed activities

For the applicant:

  • Passport scan
  • Residential address with utility bill, contact telephone/e-mail
  • CV/resume
  • Certificate of non-criminal record from the registry of convictions (not older than 3 months) for shareholder(s), board member(s), ultimate beneficiary owner(s) and compliance officer
  • Filled KYC form
  • Power of Attorney (PoA)

N.B.

  • If documents are not in English language or language of particular country, then they must be accompanied by a notarized translation.
  • Please ensure that notarization is in English language if not then please provide with notarized English translation.

Additional documents may be requested by the regulatory authority or local Bank at any point to certify specific information