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Who needs to obtain a license in Lithuania and why?

Today there are many crypto organizations, each of which offers different services. If you want to get a crypto license in Lithuania, you need to know right away which organizations are subject to licensing and how you can get a work permit.

Types of crypto license

You need to obtain a special license if you want your crypto company to operate legally. Today, Lithuania offers to issue 2 types of licenses – for the exchange and the wallet.

The choice depends on what activity your company makes a profit. So, if you are performing a currency exchange (it doesn’t matter if crypto is for crypto or crypto for fiat), then you need to obtain a license for crypto exchanges. But, if you store crypto assets and charge a fee, you need to get a permit for the wallet.

If your company provides these services at once, you need to obtain both licenses. In this case, you need to pay the fee twice and go through the verification procedure.

Primary requirements

Many experts say Lithuania sets the most loyal requirements for crypto companies compared to other EU countries. So, among the main conditions are:

  • At least one owner and shareholder;
  • A security specialist should be on staff;
  • The authorized capital of at least 2500 euros;
  • KYC policy and some others.

The company must be registered in this jurisdiction. At least 2 people must officially work here – the owner and the shareholder. A security specialist may be a shareholder. It is worth saying that the choice of such a specialist must be approached very responsibly. This person must have experience in a similar position, specialized education, and, most importantly, an excellent reputation. His/her responsibilities will include tracking various transactions, preventing employee and customer fraud, and reporting to regulators.

All team members must not have a criminal record (the relevant certificate is included in the list of documents for licensing).

The authorized capital must be kept in the company’s account in a Lithuanian bank. Money must be credited to the account in one payment.

The company needs to know its customers. Each new client must provide a document that proves their identity. Thus, licensed companies cannot perform anonymous transactions. In addition, the company must provide information about customers if required by government authorities.

But, the main thing here is the reputation of the owner and other team members. Your company should not have been involved in high-profile scandals or fraud in the past. Otherwise, you will not be eligible for a work permit.

How long does it take to get a license?

The speed of obtaining a license in Lithuania is much higher than in other European countries. So, you need to register a company, which takes about 5 days. Documents can be submitted remotely. Then you have 7 days to ensure that your company meets all the requirements and collects the necessary documents. After filing for a license, the regulatory authorities have another 14 days to analyze your company’s performance and make a decision.

Thus, if you prepare all the documents in advance, you can get a license within one month. For comparison, in the UK, this process takes an average of six months. In other countries, the requirements for applicants are more complex, so it takes more time to check all the data.

If you want the process of obtaining a license to be as simple and fast as possible, we advise you to seek help from qualified lawyers. Gofaizen & Sherle has a large team of professionals who specialize in helping to obtain crypto licenses in different EU countries and beyond. Their responsibilities include:

  • Full consultation and answers to possible questions;
  • Assistance with paperwork;
  • Checking the readiness of the company to obtain a license.

Our specialists can represent your interests in state bodies, in which case your participation in obtaining a license will be minimal. It should be said right away that you do not need to fly to Lithuania to complete all the documents; this can be quickly done remotely. If you own a foreign company and want it to function legally in Lithuania, all papers must be submitted in two versions – the original and a translation into Lithuanian.