Lithuania's cryptocurrency license offers companies extensive opportunities to operate within the EU, providing legal certainty and access to the European common market. Since 2020, Lithuania has emerged as a global leader for cryptocurrency firms, thanks to its progressive financial system and legal framework.
The government collaborates closely with the Financial Crime Investigation Service (FCIS) to support fintech startups and drive innovation. Lithuania's regulatory framework ensures a reliable business environment, fostering trust and enhancing its reputation as a secure jurisdiction for financial services. Entrepreneurs seeking to establish a cryptocurrency business in Lithuania must obtain specific permits rather than a generic "cryptocurrency license."
Lithuania remains one of the EU's most crypto-friendly jurisdictions, with no impending major legal changes. Its streamlined registration processes aim to boost Web3 economic growth amidst increasing Baltic region regulations.
Key Advantages of Lithuania's Cryptocurrency License
Lithuania is a top choice for cryptocurrency licensing due to:
- Investor Protection: FCIS ensures high standards without stifling innovation.
- EU Passporting: License holders can operate across all EU countries without additional permits.
- Eurozone Benefits: Transactions in EUR eliminate currency conversion hassles.
- Innovation-Friendly: Access to financial support programs, incubators, and expert guidance.
- Reduced Bureaucracy: Transparent and efficient licensing compared to neighboring Estonia.
Lithuanian Cryptocurrency Market Regulations
Lithuania’s crypto legislation categorizes tokens into:
- Utility Tokens: Governed by the Civil Code, these provide access to services but no profit rights.
- Asset-Backed Tokens: Subject to securities laws if they offer profit or governance rights.
ICO regulations vary based on token type:
- Securities-like tokens fall under the Securities Law.
- Crowdfunding-platform tokens adhere to the Crowdfunding Act.
- Financial instruments comply with the Financial Instruments Market Law.
Lithuania’s modern approach positions it as a key player in shaping Europe’s blockchain future.
License Types and Application Process
License Options:
- Cryptocurrency Exchange License: Permits fiat-to-crypto and crypto-to-crypto exchanges.
- Crypto Wallet Operator License: Allows secure storage and management of customer assets.
Steps to Obtain a License:
Register a Lithuanian UAB (LLC):
- Reserve a unique company name.
- Prepare incorporation documents.
- Submit registration forms.
- Apply to FCIS: After obtaining the LLC certificate.
Processing Time: 1–2 months. Professional advisors can streamline documentation and remote management.
Permitted Activities Under the License:
- Fiat-Crypto Conversions
- Staking (earning passive income via Proof-of-Stake mechanisms).
- Secure Crypto Storage via encrypted wallets.
- Account Information Services (balance/tracking).
- Fiat Currency Exchange (prepayment conversions).
- Crypto Transfers between user wallets.
- ICOs (limited to utility tokens).
Requirements for Cryptocurrency Companies
- Minimum Capital: €125,000 (effective August 2024).
- AML Compliance: Appoint an FCIS-approved compliance officer.
- Bank Account: Open with a Lithuanian or EU-based bank.
- UBO Checks: Founders/UBOs must pass IAC screening.
Key Documents:
- Notarized passports, resumes, and criminal record checks for all founders/UBOs.
- Company incorporation files.
- Proof of capital deposit.
👉 Explore Lithuania’s Crypto Licensing Services
MiCA Regulations (Effective December 2024)
The Markets in Crypto-Assets (MiCA) framework introduces:
- Capital requirements and business continuity measures.
- ESG Disclosures: Mandatory energy consumption reporting for high-impact tokens (e.g., PoW).
- Consumer Protections: Written agreements, cyberattack compensations, and transparency.
Lithuania’s alignment with MiCA strengthens its role in sustainable crypto innovation.
Tax Rules for Crypto Activities
- Corporate Tax: 15% (from 2025).
- Personal Income Tax: 15% for investor profits.
- VAT Exemptions: Applicable for utility tokens and certain payment instruments.
Compliance & AML/KYC Policies
AML Officer Duties:
- Monitor transactions (>€15,000 thresholds).
- Report suspicious activity to FCIS.
- Submit regular compliance declarations.
AML/KYC Framework:
- Client Verification: Identity/address checks.
- Transaction Monitoring: Automated anomaly detection.
- Reporting: Suspicious activity filings.
- Training: Staff education on AML/CFT protocols.
License Revocation Risks: Non-compliance or operational inactivity.
Conclusion
Lithuania’s crypto licensing offers a strategic gateway to the EU market with:
- Fast Setup: Processes completed in months.
- Regulatory Clarity: MiCA-ready framework.
- Low Taxes: Competitive corporate rates.
For tailored guidance, consult experts to navigate Lithuania’s evolving crypto landscape.
FAQs
What license types are available in Lithuania?
- Cryptocurrency exchange and wallet operator licenses.
How long does the application take?
- 1–2 months with professional assistance.
What’s the minimum capital requirement?
- €125,000, deposited in an EU/Lithuanian bank.
Are there residency requirements for directors?
- No restrictions on nationality or residency.