Crypto License Comparison: Lithuania or Estonia?
When it comes to obtaining crypto licenses, both Estonia and Lithuania have emerged as favorable destinations, each offering a unique regulatory environment. Consulting24, the fastest-growing consultancy company in Estonia, Lithuania, and Dubai, specializes in obtaining crypto licenses and has secured over 500 such licenses, advising projects on strategy, blockchain, tokenomics, token launch, and legal structure.
Lithuania: A Swift and Straightforward Approach
Lithuania crypto license is notable for its uncomplicated and prompt setup process for crypto authorization, offering licenses for cryptocurrency exchange and crypto wallet and custodian services. The Lithuanian authorization is widely accepted by banks, payment processors, and branded debit card issuers. Some established providers operating under Lithuania include Simplex, CoinGate, Nexo, and Genesis Exchange.
The licenses in Lithuania cover a spectrum of services, from exchange services and Over The Counter (OTC) to Initial Exchange Offering (IEO) and the issuance of branded debit cards. The requirements for obtaining a license include a share capital of €125,000 and the appointment of a director and a local AML officer. The overall cost for company and crypto licenses registration in Lithuania is approximately €20,000, with extra services available for AML recruitment.
Estonia: A Competitive Tax Environment
Estonia, recognized for its competitive tax environment, offers a single virtual currency service provider license covering virtual wallet services and exchange services. Estonia stands out due to its 0% corporate tax and has been ranked the number 1 place in the 2020 tax competitiveness index rating.
Estonia's crypto license allow services ranging from issuing tokens (ICO) and wallet services to running utility tokens exchange. The processes involved in obtaining a license include company registration, share transfer, opening a bank account, and hiring local directors and AML officers. The share capital requirement for custodial services is €100,000, and for exchange activity, it is €250,000. The total cost involved in obtaining a license in Estonia is around €25,000, with extra charges for hiring local directors and AML officers if needed.
While Lithuania stands out for its swift and straightforward setup process, Estonia offers a competitive tax environment, making both nations favorable destinations for obtaining crypto licenses. The choice between Estonia and Lithuania ultimately depends on the specific needs, preferences, and business models of the companies. Consulting24 stands as a reliable partner in navigating the regulatory landscapes of both countries, aiding projects in making informed decisions based on their unique regulatory frameworks and business-friendly environments.