Cryptocurrency License Requirements in Lithuania
In Lithuania, companies offering virtual asset-related services primarily require two key licenses:
Cryptocurrency Exchange License - This license equips a business with the authority to oversee operations involving the conversion of virtual currencies into FIAT currencies, and vice versa. It also permits the entity to facilitate the exchange of digital currencies among users, generating revenue through service fees.
Cryptocurrency Wallet License - This particular license allows a corporation to safely store clients' digital currencies in its wallets. It also provides the firm with control over the private keys linked to these wallets, guaranteeing secure management of digital assets.
Kickstart your crypto exchange or custodial service by setting up a UAB (Limited Liability Company) in Lithuania.
An initial capital of €125,000 is required, with 25% (€31,250) upfront and the remaining 75% (€93,750) to be contributed over a year.
Lithuania's open approach welcomes directors from all nationalities, however, the AML officer must be situated in Lithuania.
The country offers a progressive and cost-effective Crypto Exchange License, implementing MiCa Directive principles in advance of its adoption.
Expect a quick setup time of 30-60 days. Consulting24 provides support in securing a local bank account.
Completion of required compliance documents, including a detailed business plan and Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) policies.
Navigating the complex licensing application process, including submission of forms and communication with regulatory authorities.
Lithuania-based Entities: An Overview of VASP Services
Crypto to Crypto
Businesses recognized as VASPs have the authority to offer a broad range of exchange services covering a multitude of digital assets. This portfolio comprises, but is not limited to, an array of utility tokens and cryptocurrencies such as Bitcoin, Ethereum, BNB, among others.
Crypto to Fiat, Fiat to Crypto
Acquiring a cryptocurrency license in Lithuania provides the privilege to facilitate conversions between virtual and standard fiat currencies. This allows clients to carry out transactions using utility tokens like Bitcoin, Ethereum, BNB, among others, in trade for conventional currencies such as the USD and Euro.
Staking as Service
VASPs are licensed to leverage staking to create a passive income stream from cryptocurrencies. This process involves locking up cryptocurrencies within a network to support its operations. Generally, those who engage in staking earn extra tokens, providing a pathway to potentially enhance their wealth while retaining their digital assets.
Being a VASP license holder allows the licensee to securely store clients' digital currencies in custodial wallets. In essence, the service provider can create a digital wallet for a client, maintaining control over the private keys of the wallet throughout.
Your Branded Debit Card
Within Lithuania's licensing framework, your company is presented with the unique opportunity to introduce its own branded debit card for its customers. This card facilitates your clientele in conducting transactions using popular cryptocurrencies like Bitcoin, Ethereum, BNB, and others.
Mint & Trade NFTs
A VASP based in Lithuania has the expertise to construct a platform for transacting Non-Fungible Tokens (NFTs) or engage in NFT creation. This notably contributes to building a unique marketplace for digital assets.
A VASP registered in Lithuania is empowered to conduct Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs), and Initial DEX Offerings (IDOs). These avenues provide platforms for the VASP to introduce its proprietary cryptocurrency. It's important to note, however, that these offerings are strictly limited to the launch of utility tokens.
As per Lithuania's licensing regulations, you have the privilege to offer Over-the-Counter (OTC) trading solutions to your clients. This service enables discreet and direct trading of significant volumes for your clients. They can exchange well-known cryptocurrencies such as Bitcoin, Ethereum, BNB, and others.
"As the CEO of Consulting24, my primary goal is to guide entrepreneurs in launching their businesses in Lithuania and acquiring cryptocurrency licenses, all the while prioritizing cost efficiency. With our expertise and comprehensive solutions, we simplify the process of securing a Lithuanian crypto license and assist you in managing your expenses effectively. Our objective is to enable you to leverage the opportunities within the Lithuanian cryptocurrency market, whilst efficiently handling the licensing costs involved. Trust our team to steer you through the process and provide affordable solutions for your cryptocurrency licensing needs in Lithuania."
"When it comes to businesses venturing into the digital currency domain, my specialization lies in offering bespoke services, primarily in procuring a Lithuania cryptocurrency license. Our expert guidance provides clients with the confidence to navigate the intricate regulatory landscape, ensuring they successfully secure the required licenses for their crypto-centric initiatives. Rely on our expertise to shepherd you through the process and ensure compliance with all necessary regulations for your cryptocurrency endeavors in Lithuania."
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