Cryptocurrency is gaining more relevance and adoption even in formerly conservative environments. In 2020, Lithuania joined the ranks of crypto-friendly countries around the world. The country has seen a rise in virtual asset companies since then.
Lithuania recently launched a new regulation for Virtual Asset Service Providers (VASPs), which is set to have a significant impact on the cryptocurrency market. The last part of this new regulation is the creation of a register For VASP, which is slated to launch in early February 2023. Currently, there are approx 260 companies which have been added to this register. However, according to fintech and crypto consultancy gofaizen and shirley, more VASPs are expected to be added to the list in the near future. We will see the result of this effort in a few months.
VASP’s register will make it easier for users to access and analyze licensed crypto companies operating in the region, resulting in a transparent and trustworthy environment for the industry. These developments could potentially turn Lithuania into a profitable and efficient crypto market.
Here’s what you need to know about cryptocurrency regulations in Lithuania.
Legal framework for VASP operations in Lithuania
Crypto laws differ across regions and countries, with some laws being more stringent than others. Lithuania requires crypto firms to obtain a crypto license for proper registration. Revised by the Government of Lithuania AML/CTF Law For cryptocurrency firms.
Under the amended laws, registry center Will publicly display a list of companies offering virtual currency exchange services. Also, the government has reduced the list of VASPs operating in the country from around 800 to around 200. illegal activities And properly regulate cryptocurrencies in the region.
There are two types of VASPs now available in this field; virtual currency exchange operator And Virtual currency wallet operators.
Here are the notable changes in the law for crypto operators:
- It is possible to obtain a single crypto license in Lithuania. The Commercial Register (Registry Center) will monitor the requirements for the process.
- The minimum capital for a cryptocurrency company increased to 125,000 EUR.
- VASPs must have a local AML manager working for only one cryptocurrency company.
- A senior manager of the company must be a permanent resident of Lithuania.
- Members of the management team and supervisory bodies should not have a criminal record.
visit this site for a comprehensive list updated laws.
How to get crypto authorization in Lithuania
Lithuania has a streamlined process for obtaining a VASP license. The first step is submitting a note to the relevant authorities. Check out the other steps below.
- Register a company in Lithuania: To obtain authorization, register a limited liability company with a minimum share capital of 125,000 Euros in an administrative account with a local bank.
- Compliance with AML/CFT Documentation: Develop and implement AMT/CFT measures and integrate them into the internal activities of the Company.
- Registration for cryptocurrency and virtual asset exchange activities: Inform the concerned authorities to get the crypto license. The company will then be registered as either a virtual currency exchange operator or a crypto depository wallet operator. The company must be included in the Register of Legal Entities of Lithuania.
- Creating an administrative account: This account is important for all virtual asset service providers to have a reliable payment channel for their customers.
- Include an officer: A Virtual Asset Company would require the services of a Money Laundering Reporting Officer (MLRO) or Anti-Money Laundering (AML) Officer. This officer will monitor all transactions and submit notices for suspicious transactions to regulatory bodies.
- Notify the regulatory body of responsible persons implementing regulatory measures: All companies exchanging or storing virtual assets must notify the Financial Crimes Investigation Service (FCIS) in writing. Also, contact details of directors and other personnel are essential in the fight against money laundering.
Lithuania has made it mandatory for all Virtual Asset Service Providers (VASPs) to join commercial register, While there are already over 260 companies on the list, more companies are adapting to the new law and will soon be listed.
Additionally, the Lithuanian government recently amended its requirement for VASPs in the country. These are detailed in Amendment A. document and are now active in the field. The new crypto regulations seek to combat money laundering and terrorist financing while protecting the interests of crypto users. The latest regulation is part of the Lithuanian government’s supportive attitude towards the development of the crypto market by creating a favorable economic environment where young professionals in the sector can actively contribute to the growth and development of the crypto market, making the country a healthy and dynamic . Zone for investment and innovation.
Credit : www.newsbtc.com