Consulting24
Dec 18, 20232 min
In the world of cryptocurrency, securing the right license in the right jurisdiction is essential. While Lithuania stands out as a prime location for obtaining a crypto license, businesses also consider Singapore. Although the crypto license in Singapore is more prolonged, estimated at around 2 years, it remains a significant choice for some companies. In contrast, Lithuania has efficiently issued over 500 licenses, with a quick and straightforward process taking just 30-60 days, highlighting its advantages over Singapore's longer timeline.
Streamlined Setup and Requirements
Lithuania's process for obtaining a crypto license is renowned for its efficiency. A notable aspect is that anyone from the team can serve as the director, with the only mandatory local hire being AML personnel. This contrasts sharply with other regions where the requirements can be more onerous. Additionally, the Lithuanian crypto license is highly regarded by banks and payment processors, as well as debit card issuers.
Types of Lithuania Crypto Exchange Licenses
Lithuania offers two main types of crypto licenses:
Cryptocurrency Exchange License: Permits the exchange of crypto assets.
Crypto Wallet and Custodian Services License: Allows for the provision of crypto wallet services and the custody of digital assets.
Leading Providers in Lithuania
Several prominent crypto service providers operate under Lithuanian authorization, including:
Scope of Licenses
The licenses enable a wide range of services, from basic exchange services to more complex operations like NFT minting and staking. This includes trading in utility tokens, crypto-to-fiat transactions, issuing branded debit cards, and crypto fund activities.
Prerequisites for Licensing
The requirements are straightforward:
A share capital of €125,000, with 25% to be paid immediately and the rest within a year.
Establishment of a bank account, directorship, and local AML officer.
A virtual office setup is also a requirement.
Financial Aspects
The costs involved are clear and defined:
Total initial costs amount to around €20,000, including company and crypto licenses registration, AML/KYC policy preparation, and banking fees.
Additional services like AML recruitment are available for an extra fee.
Annual expenses include maintaining a virtual office, with the first year usually included in the initial costs.
Payment Methods and Process
Payments can be made in USDT or EUR, with half of the total amount due at the start of the process and the remainder before the notary step.
Consulting24’s Role
Consulting24 simplifies this process. Lena, a founder, manages contracts and payments, while the other founder focuses on banking solutions and strategic management. With a network of EMIs and traditional bank account providers, Consulting24 ensures that each client’s account needs are met.
In conclusion, Lithuania presents an efficient, cost-effective, and straightforward path to obtaining a crypto license. Its favorable regulatory environment, combined with the support of services like Consulting24, makes it a superior choice for businesses looking to establish themselves in the cryptocurrency space, particularly when compared to more prolonged processes in jurisdictions like Singapore.