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CRYPTO LICENSE IN LITHUANIA

Support in the issuance of Lithuania crypto license with a guarantee of a turnkey contract.

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In order to apply for a crypto license in Lithuania, you must have a limited liability company (UAB) to provide cryptocurrency exchange or storage services. From 1.11.2022, according to the new legislation, the share capital requirement of a company is 125,000 EUR. Previously, the minimum share capital was 2,500 EUR. Besides, the new law includes the formation of the FCIS registry (FNTT) with a list of crypto companies and the requirement for a dedicated AML officer. UAB (LLC) legal form allows conducting activities in regards to custody and exchange services of virtual values and cryptocurrency.

But, it is important to know that the new Lithuanian legislation allows registering a crypto company WITHOUT an authorized capital contribution in ANY amount at ANY time, despite the requirement of 125,000 EUR. Also, under the condition of having a local AML officer assigned to ONLY one crypto company, it is possible to find a solution within the monthly cost of 800 EUR with official employment. For more information,fill out the feedback form.

In Lithuania, two types of cryptocurrency authorizations can be obtained: a Cryptocurrency exchange license and a Cryptocurrency wallet license. The first type of license allows a company to exchange digital currency for fiat currencies or vice versa, and cryptocurrency for fiat currency by charging a fee. The second type of license is for companies introducing cryptocurrency wallets to store cryptocurrency, create encrypted client keys, and store them. Both are under the supervision of the Lithuanian Financial Crime Investigation Service (FCIS).

Thus, unlike most other European jurisdictions for crypto businesses, Lithuania remains the fastest, most economically viable, and legally established EU country with a clear understanding of the future and the principles of the MiCa Directive already implemented.

Service packages for registration of Lithuania crypto license

Choose the best package of services for obtaining a crypto activity license in Lithuania

The offer is made in accordance with the legislation of 1.11.2021

  • BASIC

    Registration of the Virtual Asset Service Provider under the minimum regulatory requirements

    € 4200

    Initial set up

    € 800 /month

    Maintenance per month

    • Full turnkey company formation assistance
        • Step 1
          Assistance in opening start-up account for the formation of the authorized capital of 2500 EUR
        • Step 2
          Drafting Articles of Association and other supplementing documents in accordance with the Client's company corporate structure
        • Step 3
          Arrangement of the deal at the notary (notary fees included)
        • Step 4
          Processing and transfer of the documents to the commercial registry with the further entry within the registry (governmental fees included)
    • Formation of the monetary share capital
        • Step 1
          Assistance in opening an operational account within EMI/Crypto friendly Bank (for DEPOSIT only). Further, the Client has to execute the contribution of 31 250 EUR (25% of the declared shared capital in the amount of 125 000 EUR)
        • Step 2
          Adaptation of Articles of Association under new share capital level
        • Step 3
          Arranging a time slot for a notary deal (notary fees included)
        • Step 4
          Processing and transfer of the documents to the commercial registry (governmental fees included)
    • Address of registration for 1 year

          Services of registration address include:

          • Company address for 1 year
          • Physical mail receipt, scan and forwarding to the preferred email address
          • Organization and administration service
      • Registration as VASP within commercial registry
          • Step 1
            Submission of a special JAR form to the commercial registry along with the list of beneficiaries to register a company by the commercial code of activity as a Virtual Asset Service Provider

          *Action is done simultaneously with the share capital increase

      • Corporate documents in the Lithuanian language
          • Step 1
            Ordering a set of corporate documents from the commercial registry (electronic form) in the Lithuanian language
          • Registry card
          • Articles of Association
          • List of shareholders

          *The extract will specify in p. 10 that the company acts as an operator for the exchange and storage of virtual values

          *No translation and apostille

      • Templated draft of AML/KYC policy
          • Step 1
            Transferring templated drafts of AML/KYC policies to the Client

          Templated drafts of AML/KYC policies are adapted under the Lithuanian AML legislation based, but not found in accordance with Client's business model.

          Such a set of policies will be sufficient for further registration with the Lithuanian Supervisory Authority (FCIS / FNTT), but not enough for conducting business activities, incl. successful opening of accounts in payment institutions/Banks, involvement of a competent MLRO, etc.

      • An exclusive AML/KYC Officer - up to 1 hour per month
          • Step 1
            Search for a candidate for the AML/KYC officer position that meets only regulatory requirements
          • Step 2
            Notifying FCIS/FNTT in regards to the appointment of the selected candidate for the position of AML officer and as a responsible person for further communication with the supervisory authorities

          Criteria for candidate under “basic” package:

          • Bachelor's degree in Finance; Law or Business
          • Involvement in the Client's project - up to 1 hour per month
          • Local resident and Lithuanian native speaker
          • No experience in AML/KYC area
          • No direct employment arrangements
          • No regular trainings and support on reporting issues

          Pros:

          • The following candidate will meet the regulator's expectations during acquiring a VASP registration and reduce the monthly financial burden at the first stage

          Cons:

          • The following candidate will not take a part in actual working process
          • Decrease the possibility of successfully opening a Bank account
          • Raise chances of possible fines within the framework of future regulatory oversight
      • Registration of VASP activities within FCIS/FNTT
          • Step 1
            Filling out a forms and submitting notification to the Financial Crime Investigation Service (FCIS) in regards to the virtual currency wallet and exchange operator activities

          Among other documents, notification have to contain the following:

          • Company name and profile, registry code
          • List of intended operating activities
          • Place of conducting operating activities and the company registration address
          • AML/KYC/CFT procedural rules
          • List of responsible persons, their profiles and contact information including AML/KYC officer
      Order now
    • Advanced

      Exhaustive set up of company infrastructure for the start of operational activity

      € 7800

      Initial set up

      € 1800 /month

      Maintenance per month

      • Full turnkey company formation assistance
          • Step 1
            Assistance in opening start-up account for the formation of the authorized capital of 2500 EUR
          • Step 2
            Drafting Articles of Association and other supplementing documents in accordance with the Client's company corporate structure
          • Step 3
            Arrangement of the deal at the notary (notary fees included)
          • Step 4
            Processing and transfer of the documents to the commercial registry with the further entry within the registry (governmental fees included)
      • Formation of the monetary share capital
          • Step 1
            Assistance in opening an operational account within EMI/Crypto friendly Bank (for DEPOSIT only). Further, the Client has to execute the contribution of 31 250 EUR (25% of the declared shared capital in the amount of 125 000 EUR)
          • Step 2
            Adaptation of Articles of Association under new share capital level
          • Step 3
            Arranging a time slot for a notary deal (notary fees included)
          • Step 4
            Processing and transfer of the documents to the commercial registry (governmental fees included)
      • Address of registration for 1 year

            Services of registration address include:

            • Company address for 1 year
            • Physical mail receipt, scan and forwarding to the preferred email address
            • Organization and administration service
        • Registration as VASP within commercial registry
            • Step 1
              Submission of a special JAR form to the commercial registry along with the list of beneficiaries to register a company by the commercial code of activity as a Virtual Asset Service Provider

            *Action is done simultaneously with the share capital increase

        • Apostilled and translated corporate documents
            • Step 1
              Ordering a set of corporate documents from the commercial registry (electronic form) in the Lithuanian language
            • Step 2
              Conducting sworn translation to the English language
            • Step 3
              Apostille
            • Registry card
            • Articles of Association
            • List of shareholders

            *The extract will specify in p. 10 that the company acts as an operator for the exchange and storage of virtual values

            *No translation and apostille

            * Apostilled and translated corporate documents are necessary for further onboarding within Banks, liquidity providers and establishment of business relations with third parties

        • Developed AML/KYC policy
            • Step 1
              The Client will be presented with a list of 30-40 questions (to identify risk appetites, the geography of the customers, nature of the business, etc.)
            • Step 2
              Integration of the answers into the main set of the documents (adaption of customer due diligence measures, implementations of sanctions, collecting and storing data, principles of verification, etc.)

            *Adaptation of AML/KYC policies under the Clients business model takes from 15 to 20 hours of lawyer’s work

            (a) allow assigning of proper Lithuanian MLRO with relevant experience and education with further convenient integration of MLRO into the company structure

            (b) increase company sustainability in the long run

            (c) increase the probability of opening an operating account within Bank/EMI

            (d) decrease multiple questions to the company during the course of operating activity arising by the Lithuanian Financial Crime Investigation Service (FCIS)

        • Experienced exclusive AML/KYC - up to 20 hours per month
            • Step 1
              Search for a candidate for the AML/KYC officer position that meets regulatory requirements and the expectation of the project with subsequent approval by the Client of a candidate for the role
            • Step 2
              Integration and training based on the principles of the Client's operating activities
            • Step 3
              Providing and configuring access of AML officer to the electronic state environment for further reporting on suspicious and nonstandard transactions
            • Step 4
              Arranging direct employment relations between Client’s company and AML officer (preparing employment agreement, registering AML officer with tax authorities of Lithuania, SODRA)
            • Step 5
              Notifying FCIS/FNTT in regards to the appointment of the selected candidate for the position of AML officer and as a responsible person for further communication with the supervisory authorities
            • Step 6
              Further monitoring (on the monthly basis) of AML officer on FNTT/FCIS reporting issues, regular trainings, assistance in communication with regulatory bodies (assistance in answering queries; questionnaires and targeted requests from FCIS/FNTT)

            Criteria for candidate under “advanced” and “full” package:

            • Bachelor's or Master’s degree in Finance; Law or Business
            • Involvement in the Client's project - up to 20 hours per month, with subsequent greater occupation (if necessary)
            • Local resident and Lithuanian native speaker
            • Experience and/or regular trainings for the role of AML/KYC officer
            • Direct employment arrangement with the Client’s company
            • Further regular support of AML officer
        • Registration of VASP activities within FCIS/FNTT
            • Step 1
              Filling out a forms and submitting notification to the Financial Crime Investigation Service (FCIS) in regards to the virtual currency wallet and exchange operator activities

            Among other documents, notification have to contain the following:

            • Company name and profile, registry code
            • List of intended operating activities
            • Place of conducting operating activities and the company registration address
            • AML/KYC/CFT procedural rules
            • List of responsible persons, their profiles and contact information including AML/KYC officer
        • Search for premises for rent
            • Step 1
              Search for premises for rent based on the Client preferences (size, cost, location, infrastructure)
            • Step 2
              Contacting landlords and concluding a lease agreement directly with the Client's company
            • Step 3
              Key handover

            *The minimum cost of renting an office with utilities in Lithuania is 150-200 EUR per month (7-15 sq. meters)

            *Payment for the rent of the office will be made by the Client directly to the tenant and it is not included in the price of this package

            • In accordance with the legislation of 1.11.2022, it is necessary for virtual asset service providers be partially oriented on the target customer groups to the Lithuanian market. In this regard, we recommend having a "formal" physical representation in the territory of Lithuania
            • Having a lease agreement or a utility bill will allow to open a bank account in a simplified manner
        • Assistance in opening Bank account for crypto operating activity
            • Step 1
              Analysis of the most suitable Banks/EMIs, comparison of the risk appetite of the Bank in relation to the risk appetite of the Client based on previously prepared AML policies
            • Step 2
              Collection of necessary documents from the Client side to initiate the process (flow of funds, source of wealth, description of the purpose of opening an account, key partners, company website, utility bill, etc.)
            • Step 3
              Initiation of the onboarding procedure simultaneously in 2-3 crypto friendly EMI's
            • Step 4
              Guiding the Client's company through the entire process of opening an account
            • Step 5
              Acquiring connection (if necessary)

            Account characteristics:

            • Crypto friendly EMI registered in EEA/EU
            • B2B SWIFT
            • B2B SEPA
            • B2C SWIFT
            • B2C SEPA
            • Multicurrency account USD/EUR/GBP
            • Individual IBAN number

            *One-time fee for onboarding within EMI varies between 500-2000 EUR (not included into the package) and have to be paid by the applicant separately

            *Inbound fiat transaction fees (SEPA/SWIFT) varies between 0.1%-0.2%

            *Outbound fiat transaction fees (SEPA/SWIFT) varies between 0.1%-0.2%

            *Gofaizen & Sherle can guarantee successful result of account opening within one of the EMI's in case all recommendation are followed by the Client. However, it cannot be guaranteed success within specific EMI, since the final decision is always taken by the compliance department of EMI

            Factors that increase the likelihood of opening an account:

            • Presence of a physical office in the country of incorporation upon presentation of a lease agreement or utility bill during the onboarding procedure
            • Well-written business plan/description of business processes and financial projections
            • Description of cash flows
            • Adapted AML / KYC / CTF procedural rules for the business model, which confirm that the applicant maintain risks
            • Well-established infrastructure, in accordance with the type of high-risk activity (availability of a competent AML officer, employment contracts confirming the actual participation of AML officer in the project, KYT / KYC provider performing transaction scoring, etc.)
            • Preferably the presence of a director, a resident of the country of registration of the company
        Order now
      • Full

        Full set up of the VASP business with all the necessary infrastructure, connection to KYC providers, local substance and Accounting services

        € 9900

        Initial set up

        € 2100 /month

        Maintenance per month

        • Full turnkey company formation assistance
            • Step 1
              Assistance in opening start-up account for the formation of the authorized capital of 2500 EUR
            • Step 2
              Drafting Articles of Association and other supplementing documents in accordance with the Client's company corporate structure
            • Step 3
              Arrangement of the deal at the notary (notary fees included)
            • Step 4
              Processing and transfer of the documents to the commercial registry with the further entry within the registry (governmental fees included)
        • Formation of the monetary share capital
            • Step 1
              Assistance in opening an operational account within EMI/Crypto friendly Bank (for DEPOSIT only). Further, the Client has to execute the contribution of 31 250 EUR (25% of the declared shared capital in the amount of 125 000 EUR)
            • Step 2
              Adaptation of Articles of Association under new share capital level
            • Step 3
              Arranging a time slot for a notary deal (notary fees included)
            • Step 4
              Processing and transfer of the documents to the commercial registry (governmental fees included)
        • Address of registration for 1 year

              Services of registration address include:

              • Company address for 1 year
              • Physical mail receipt, scan and forwarding to the preferred email address
              • Organization and administration service
          • Registration as VASP within commercial registry
              • Step 1
                Submission of a special JAR form to the commercial registry along with the list of beneficiaries to register a company by the commercial code of activity as a Virtual Asset Service Provider

              *Action is done simultaneously with the share capital increase

          • Apostilled and translated corporate documents
              • Step 1
                Ordering a set of corporate documents from the commercial registry (electronic form) in the Lithuanian language
              • Step 2
                Conducting sworn translation to the English language
              • Step 3
                Apostille
              • Registry card
              • Articles of Association
              • List of shareholders

              *The extract will specify in p. 10 that the company acts as an operator for the exchange and storage of virtual values

              *No translation and apostille

              * Apostilled and translated corporate documents are necessary for further onboarding within Banks, liquidity providers and establishment of business relations with third parties

          • Developed AML/KYC policy
              • Step 1
                The Client will be presented with a list of 30-40 questions (to identify risk appetites, the geography of the customers, nature of the business, etc.)
              • Step 2
                Integration of the answers into the main set of the documents (adaption of customer due diligence measures, implementations of sanctions, collecting and storing data, principles of verification, etc.)

              *Adaptation of AML/KYC policies under the Clients business model takes from 15 to 20 hours of lawyer’s work

              (a) allow assigning of proper Lithuanian MLRO with relevant experience and education with further convenient integration of MLRO into the company structure

              (b) increase company sustainability in the long run

              (c) increase the probability of opening an operating account within Bank/EMI

              (d) decrease multiple questions to the company during the course of operating activity arising by the Lithuanian Financial Crime Investigation Service (FCIS)

          • Experienced exclusive AML/KYC - up to 20 hours per month
              • Step 1
                Search for a candidate for the AML/KYC officer position that meets regulatory requirements and the expectation of the project with subsequent approval by the Client of a candidate for the role
              • Step 2
                Integration and training based on the principles of the Client's operating activities
              • Step 3
                Providing and configuring access of AML officer to the electronic state environment for further reporting on suspicious and nonstandard transactions
              • Step 4
                Arranging direct employment relations between Client’s company and AML officer (preparing employment agreement, registering AML officer with tax authorities of Lithuania, SODRA)
              • Step 5
                Notifying FCIS/FNTT in regards to the appointment of the selected candidate for the position of AML officer and as a responsible person for further communication with the supervisory authorities
              • Step 6
                Further monitoring (on the monthly basis) of AML officer on FNTT/FCIS reporting issues, regular trainings, assistance in communication with regulatory bodies (assistance in answering queries; questionnaires and targeted requests from FCIS/FNTT)

              Criteria for candidate under “advanced” and “full” package:

              • Bachelor's or Master’s degree in Finance; Law or Business
              • Involvement in the Client's project - up to 20 hours per month, with subsequent greater occupation (if necessary)
              • Local resident and Lithuanian native speaker
              • Experience and/or regular trainings for the role of AML/KYC officer
              • Direct employment arrangement with the Client’s company
              • Further regular support of AML officer
          • Registration of VASP activities within FCIS/FNTT
              • Step 1
                Filling out a forms and submitting notification to the Financial Crime Investigation Service (FCIS) in regards to the virtual currency wallet and exchange operator activities

              Among other documents, notification have to contain the following:

              • Company name and profile, registry code
              • List of intended operating activities
              • Place of conducting operating activities and the company registration address
              • AML/KYC/CFT procedural rules
              • List of responsible persons, their profiles and contact information including AML/KYC officer
          • Search for premises for rent
              • Step 1
                Search for premises for rent based on the Client preferences (size, cost, location, infrastructure)
              • Step 2
                Contacting landlords and concluding a lease agreement directly with the Client's company
              • Step 3
                Key handover

              *The minimum cost of renting an office with utilities in Lithuania is 150-200 EUR per month (7-15 sq. meters)

              *Payment for the rent of the office will be made by the Client directly to the tenant and it is not included in the price of this package

              • In accordance with the legislation of 1.11.2022, it is necessary for virtual asset service providers be partially oriented on the target customer groups to the Lithuanian market. In this regard, we recommend having a "formal" physical representation in the territory of Lithuania
              • Having a lease agreement or a utility bill will allow to open a bank account in a simplified manner
          • Assistance in opening Bank account for crypto operating activity
              • Step 1
                Analysis of the most suitable Banks/EMIs, comparison of the risk appetite of the Bank in relation to the risk appetite of the Client based on previously prepared AML policies
              • Step 2
                Collection of necessary documents from the Client side to initiate the process (flow of funds, source of wealth, description of the purpose of opening an account, key partners, company website, utility bill, etc.)
              • Step 3
                Initiation of the onboarding procedure simultaneously in 2-3 crypto friendly EMI's
              • Step 4
                Guiding the Client's company through the entire process of opening an account
              • Step 5
                Acquiring connection (if necessary)

              Account characteristics:

              • Crypto friendly EMI registered in EEA/EU
              • B2B SWIFT
              • B2B SEPA
              • B2C SWIFT
              • B2C SEPA
              • Multicurrency account USD/EUR/GBP
              • Individual IBAN number

              *One-time fee for onboarding within EMI varies between 500-2000 EUR (not included into the package) and have to be paid by the applicant separately

              *Inbound fiat transaction fees (SEPA/SWIFT) varies between 0.1%-0.2%

              *Outbound fiat transaction fees (SEPA/SWIFT) varies between 0.1%-0.2%

              *Gofaizen & Sherle can guarantee successful result of account opening within one of the EMI's in case all recommendation are followed by the Client. However, it cannot be guaranteed success within specific EMI, since the final decision is always taken by the compliance department of EMI

              Factors that increase the likelihood of opening an account:

              • Presence of a physical office in the country of incorporation upon presentation of a lease agreement or utility bill during the onboarding procedure
              • Well-written business plan/description of business processes and financial projections
              • Description of cash flows
              • Adapted AML / KYC / CTF procedural rules for the business model, which confirm that the applicant maintain risks
              • Well-established infrastructure, in accordance with the type of high-risk activity (availability of a competent AML officer, employment contracts confirming the actual participation of AML officer in the project, KYT / KYC provider performing transaction scoring, etc.)
              • Preferably the presence of a director, a resident of the country of registration of the company
          • Setting up KYC/KYT Provider
              • Step 1
                Assistance in choosing a provider compliant with Lithuanian AML legislation
              • Step 2
                Providing legal assistance in setting up KYC software and integrating the principles of the project
              • Step 3
                Adaptation of the company's internal documentation under the relevant KYC / KYT provider

              *Fees of KYT/KYC provider is not included into the package and might vary:

              • the cost for KYC provider without API integration might vary between 300-500 EUR per month
          • Accounting services for VASP
              • Step 1
                Development of accounting rules for the client's crypto company
              • Step 2
                Integration of an accountant and preliminary consultation on the conduct of activities within the framework of crypto accounting
              • Step 3
                Initial set up and connecting to an accounting program
              • Step 4
                Further monthly accounting services
              • Monthly consultations on accounting issues for crypto companies - up to 2 hours per month
              • Reports up to 50 transactions on an operating account
              • Calculation and submission of payroll reports - up to 3 employees
              • Intermediate reports (by request of the Client) - cash flow statement, income statement, balance sheet
              • Statistical reports
              • Annual report
          • Legal Opinion
              • Step 1
                Internal research audit of the client's project
              • Step 2
                Examination of applicable legislation with respect to the project
              • Step 3
                Preparation of Legal Opinion confirming the legality of the company's activities in the jurisdiction of its establishment
              • Step 4
                The legal conclusion/legal analysis of the case

              *Legal opinion often asked by Electronic Money Institutions and Banks registered outside of Lithuania and other third parties

          Order now
        Fintech lawyers in Lithuania
        Laura Puidokienė

        Laura Puidokienė

        Associate, Lawyer

        Vladimiras Kokorevas

        Vladimiras Kokorevas

        Senior Associate, Lawyer

        Advantages of Advanced and Full packages in comparison to Basic package

        advantage

        Availability of adapted AML/KYC procedural rules will allow to avoid (within the framework of regulatory oversight) multiple inquiries and possible fines for conducting activity without internal guides

        advantage

        EMI's/Banks during the onboarding process (opening an account) will evaluate Clients according to their risk appetites written in the AML policies. Accordingly, if you do not have individual AML procedural rules, it may lead to a significantly higher chance of refusing to open a corporate account for your company. Gofaizen & Sherle does not provide assistance in opening a corporate account without adapted rules.

        advantage

        A competent AML/KYC officer with experience in the field of AML will desire to familiarize with VASP AML policies and will not take a reputational risk to be appointed in the company with inappropriate written internal documentation, as it may affect his career in the future. The availability of a competent AML officer will definitely reduce FCIS inquiries in the long run.

        advantage

        EMI's and Banks often request the information on the qualification of the senior AML employee and will be pleased to see a competent AML/KYC officer in the company.

        advantage

        It is desirable to have a local office in order to confirm the focus of activity on the Lithuanian market (from possible regulatory supervision in the future). The renal cost of 10-15sq meters amounts to 250-300 EUR per month with utilities.

        advantage

        Payment Institutions require from the applicants the proof of operating address and having the office in the country of registration reduces the risk level of the company, which allows to accelerate the onboarding process at the EMI as well as might reduce the fees of the Payment Institution.

        bitcoin

        Alternative solution

        Ready-made company with crypto exchange and deposit operator authorizations and 2500 EUR Share Capital in Lithuania

        € 9 900

        Price

        5-6 weeks

        Duration

        Order now
        Recommended
        bitcoin

        Alternative solution

        Ready-made solution with registered share capital of 125 000 EUR, which does not require the contribution of Share Capital in ANY amount at ANY moment

        € 24 900

        Price

        2-3 weeks

        Duration

        Order now

        Pricing plans for AML/KYC Officer Service

        The offer is made in accordance with the legislation of 1.11.2022

        • Package 1

          € 800 /month

          Fee per month

          • Local resident and Lithuanian native speaker

          • Exclusive (appointed only per one VASP company)

          • Employment type
            Outsourcing agreement

          • Education of AML/KYC candidate
            Bachelor’s degree

          • Involvement in the Client's project
            1 hour per month

          • All relevant taxes on the salary (income tax/ social insurance; pension deductions; unemployment insurance etc.)

          Order now

          *Package 1 possible only with a prior payment for 6 month

        • Package 2

          € 1800 /month

          Fee per month

          • Local resident and Lithuanian native speaker

          • Exclusive (appointed only per one VASP company)

          • Employment type
            Direct employment agreement

          • Education of AML/KYC candidate
            Master’s or Bachelor’s degree

          • Experience in the relevant field of AML/CFT/KYC
            Minimal

          • Involvement in the Client's project
            20 hours per month

          • All relevant taxes on the salary (income tax/ social insurance; pension deductions; unemployment insurance etc.)

          • Supervision of AML/KYC officer

          • Gofaizen & Sherle regular assistance in answering queries; questionnaires and targeted requests from FCIS/FNTT and other regulatory bodies

          Order now

          *Package 2 possible with prior payment minimum for 3 month

        • Package 3

          € 3200 /month

          Fee per month

          • Local resident and Lithuanian native speaker

          • Exclusive (appointed only per one VASP company)

          • Employment type
            Direct employment agreement

          • Education of AML/KYC candidate
            Master’s or Bachelor’s degree

          • Experience in the relevant field of AML/CFT/KYC
            From 2-3 years

          • Involvement in the Client's project
            40 hours per month

          • All relevant taxes on the salary (income tax/ social insurance; pension deductions; unemployment insurance etc.)

          • Supervision of AML/KYC officer

          • Gofaizen & Sherle regular assistance in answering queries; questionnaires and targeted requests from FCIS/FNTT and other regulatory bodies

          Order now

          *Package 3 possible with prior payment minimum for 3 month

        Advantages of Lithuanian Jurisdiction

        advanteg

        Lithuania is recognised as a European Fintech center

        advanteg

        Loyal conditions and a favorable financial environment

        advanteg

        Relatively simple procedural requirements to obtain a license

        advanteg

        Relatively short time frame for setting up a crypto company

        advanteg

        One of the lowest corporate taxes in the EU - 15%

        advanteg

        Possibility to register a company remotely

        advanteg

        No residency requirements for owners and shareholders, no requirements to hire Lithuanian staff

        Requirments

        Documents required from the applicant for Lithuanian VASP License:

        • An up-to-date copy of the passport of the country of residence (scan) of all related persons
        • A business model of the company (brief description 1-2 A4 pages)
        • CVs (Resumes) of all related persons
        • Filled customer profile(s) from all the participants of the project
        • Proof of residential Address for each participant is provided
        • CV (Resume) of senior AML Employee
        • Certificate of no criminal record for all related persons (Might be requested by the regulator)

        Requirements for the Lithuanian VASP Company as of 01.11.2022:

        • Share capital minimum 125 000 EUR (At the initial stage, at least 25% have to be contributed)
        • Exclusive AML/KYC Officer with high qualification and impeccable business reputation and local residence in Lithuania
        • AML Officer shall be employed to the company
        • At least partial business focus on the Lithuanian market
        • Local address for government correspondence
        • Higher requirements to the business reputation of company's management
        • Adapted under business model individual AML/CFT guidelines and internal control policies, corresponding to the Lithuanian legislation
        • Company must identify and verify customer before establishing business relationship or when the operation exceeds certain amount
        • Company must Report to FCIS
        • Company must keep records and customer data

        Requirements for the Lithuanian VASP Company before 01.11.2022:

        • Share capital minimum 2 500 EUR
        • Local address for government correspondence
        • Senior management must have a good business reputation
        • Money Laundering Reporting Officer (MLRO) must prove impeccable business reputation, i.e. provide supporting documents regarding education, skills and relevant trainings
        • MLRO should be officially employed by the company and have ability to correspond with Financial Crime Investigation Unit in Lithuanian language
        • Adapted under business model individual AML/CFT guidelines and internal control policies
        • Company must identify and verify customer before establishing business relationship or when the operation exceeds certain amount
        • Company must Report to FCIS
        • Company must keep records and customer data

        Process and timeline for obtaining a crypto licence in Lithuania

        After 6-8 weeks company will be fully registered as a Virtual Asset Service Provider and 2-3 weeks will be required extra to become fully operative and open a Bank account

        Stage 1

        PRELIMINARY PROJECT ASSESSMENT

        clock1-2 days

        Result: All the needed documents for the process initiation are collected.

        Collecting preliminary set of the documents from the Client side:

        • 1.An up-to-date copy of the passport of the country of residence (scan)
        • 2.A business model of the company (brief description 1-2 A4 pages)
        • 3.Preferred company name is provided
        • 4.Filled customer profile(s) from all the participants of the project are collected
        • 1.Address of residence for each participant is provided
        • 2.Budgets and scope of the project are approved according to the initial workshop
        • 3.Gofaizen & Sherle operational department has drafted PoA and shared it with the Client along with further steps

        Stage 2

        REGISTRATION PROCESS

        clock3-4 weeks

        Result: The company is registered as the Virtual Asset Service Provider with the share capital of 125 000 EUR

        • 1.Upon the documents (hard copies) receipt on hands by Lithuanian office, the sworn translation to Lithuanian language is conducted
        • 2.Assistance in opening start-up account for the formation of the authorized capital of 2500 EUR
        • 3.Client has transferred share capital in the amount of 2500 EUR and we have collected printout from the Bank
        • 4.Drafting Articles of Association and other supplementing documents in accordance with the Client's company corporate structure
        • 5.The notary deal is arranged and conducted
        • 6.Processing and transfer of the documents to the commercial registry with the further entry within the registry
        • 7.Company entry appears in the commercial register after one week
        • 8.Assistance in opening an operational account within EMI/Crypto friendly Bank (for DEPOSIT only). Further, the Client has to execute the contribution of 31 250 EUR (25% of the declared shared capital in the amount of 125 000 EUR)
        • 1.Adaptation of Articles of Association under new share capital level
        • 2.Arranging a time slot for a notary deal
        • 3.After the notary deal for the increase of the share capital is conducted, processing and transfer of the documents to the commercial registry
        • 4.Submission of a special JAR form to the commercial registry along with the list of beneficiaries to register a company by the commercial code of activity as a Virtual Asset Service Provider (Action is done simultaneously with the share capital increase)
        • 5.Ordering a set of corporate documents from the commercial registry (electronic form) in the Lithuanian language (Registry card; Articles of Association; List of Shareholders)
        • 6.Conducting sworn translation of the corporate documents into the English language
        • 7.Notarization and Apostille of corporate documents

        Stage 3

        LICENSING PROCESS

        clock2-3 weeks

        Result: The company has all the infrastructure settled for the activity of VASP as required by the regulation as well as needed for conducting the operating activity within the legal framework of Lithuania

        • 1.The Client will be presented with a list of 30-40 questions (to identify risk appetites, the geography of the customers, nature of the business, etc.)
        • 2.Integration of the answers into the main set of the documents (adaption of customer due diligence measures, implementations of sanctions, collecting and storing data, principles of verification, etc.)
        • 3.Search for premises for rent based on the Client preferences (size, cost, location, infrastructure)
        • 4.Contacting landlords and concluding a lease agreement directly with the Client's company
        • 5.Key handover (Later, when it is suitable for the Client)
        • 6.Assistance in choosing a KYC/KYT provider compliant with Lithuanian AML legislation
        • 7.Providing legal assistance in setting up KYC/KYT software and integrating the principles of the project
        • 8.Adaptation of the company's internal documentation under the relevant KYC / KYT provider
        • 1.Search for a candidate for the AML/KYC officer position that meets regulatory requirements and the expectation of the project with subsequent approval by the Client of a candidate for the role
        • 2.Integration and training based on the principles of the Client's operating activities
        • 3.Providing and configuring access of AML officer to the electronic state environment for further reporting on suspicious and nonstandard transactions
        • 4.Arranging direct employment relations between Client’s company and AML officer (preparing employment agreement, registering AML officer with tax authorities of Lithuania, SODRA)
        • 5.Notifying FCIS/FNTT in regards to the appointment of the selected candidate for the position of AML officer and as a responsible person for further communication with the supervisory authorities
        • 6.Further monitoring (on the monthly basis) of AML officer on FNTT/FCIS reporting issues, regular trainings, assistance in communication with regulatory bodies (assistance in answering queries; questionnaires and targeted requests from FCIS/FNTT)
        • 7.Filling out a forms and submitting notification to the Financial Crime Investigation Service (FCIS) in regards to the virtual currency wallet and exchange operator activities

        Stage 4

        CORPORATE ACCOUNT OPENING AND ACCOUNTING

        clock2-4 weeks

        Result: The company has an operational corporate account under crypto with connected accounting service

        • 1.Analysis of the most suitable Banks/EMIs, comparison of the risk appetite of the Bank in relation to the risk appetite of the Client based on previously prepared AML policies (Done simultaneously with premise search)
        • 2.Collection of necessary documents from the Client side to initiate the process (flow of funds, source of wealth, description of the purpose of opening an account, key partners, company website, utility bill, etc.)
        • 3.Initiation of the onboarding procedure simultaneously in 2-3 crypto friendly EMI's
        • 4.Guiding the Client's company through the entire process of opening an account
        • 1.Acquiring connection (if necessary)
        • 2.Development of accounting rules for the client's crypto company
        • 3.Integration of an accountant and preliminary consultation on the conduct of activities within the framework of crypto accounting
        • 4.Initial set up and connecting to an accounting program
        • 5.Further monthly accounting services

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        Laura Puidokienė

        Laura Puidokienė

        Associate, Lawyer

        Vladimiras Kokorevas

        Vladimiras Kokorevas

        Senior Associate, Lawyer

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        • chess

          A comprehensive and tailored approach

          Gofaizen & Sherle provides comprehensive services under one roof, allowing clients to plan and prioritize their chosen strategy in a very short time and with limited resources. We offer a wide range of services, including consultancy, legal services, and company formation, which focus on the optimal implementation of business strategies.

        • diamand

          Versatile experience

          You will receive legal and management consultancy services of the highest caliber, thanks to the many years of experience of our highly qualified professionals. Each client receives comprehensive assistance with business development and support. Every task is tailored to the client's needs, the specifics of the business and the legislation of the particular country.

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          Long-term partnerships

          Our company establishes a relationship of trust and long-term commitment with our customers. An indication of Gofaizen & Sherle's high level of service is the cooperation with our customers on an ongoing basis.

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        TESTIMONIALS

        • logo
          quotes
          Gofaizen & Sherle has successfully implemented all the tasks related to the settlement of legal part (company formation and VASP license application) of our exchange whitebit.com.
          Vladimir Nosov
          CEO
          Whitebit
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          quotes
          Payeer OÜ is grateful to Gofaizen & Sherle team for their professional personalized approach. We were presented with quick results and efficient replies. For us it was easy and pleasantly to work with the specialists of G&S and we hope for fruitful continuous cooperation.
          Liubov S
          CEO
          Payeer OÜ
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          quotes
          Working with Gofaizen & Sherle team was a real pleasure. Their high level of professionalism and expertise made our journey through the process of establishing and licensing of our company really easy and time efficient. G&S is a trusted partner for us in any topics related to FinTech business.
          Edward Kost
          CEO
          VULTURE OÜ
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          quotes
          We are very pleased with the proficiency, expertise and efficiency that the team of Gofaizen & Sherle showed while delivering our project. Their commitment and approach determine the high quality of services they provide. The competence of the legal advisors in the team of G&S made them a trusted long term partner for us.
          Bar El
          CEO
          UAB GetCoins
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          Gofaizen & Sherle has proven itself as a reliable business partner and highly qualified legal advisor. Our cooperation with Gofaizen & Sherle on many projects has been professional and effective. Extensive expertise, meeting deadlines, being responsive and attentive to every issue distinguish the Gofaizen & Sherle team from other firms. We look forward to working with Gofaizen & Sherle again in the future.
          Nikita Tepikin
          Managing Partner
          Legal Kornet
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          The Manimama OU team would like to thank Gofaizen & Sherle for their professionalism and the quality of the work. Gofaizen & Sherle team has provided us with clear and practical legal advice on various issues including creating of the VASPs in Baltic states and other legal advices. Gofaizen & Sherle's knowledge and expertise base are very deep and they understand the complexities and nuances of many really difficult cases. We strongly recommend their services
          Ganna Voievodina
          CEO
          Manimama OÜ
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          quotes
          At Pilsenga since the very beginning we counted with Gofaizen & Sherle to build our financial institution in 21 days, we started our operations in record time thanks to them, it’s been pleasant to work with them through the rush of building a Financial Institution in record time. They for real understand compliance and crypto businesses!
          Victor Romero
          CEO
          UAB Pilsenga
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          Excellent service! The communication is fast and friendly, we are very satisfied with received comprehensive package of services such as legal consulting, full turnkey crypto company formation in Lithuania, assistance in bank account opening for ’’high risk” business, human resources acquisition etc. Highly recommended!
          Roman Potemkin
          Founder & CEO
          TRASTRA
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          Gofaizen & Sherle are true professionals, everything related local incorporation, business management and financial licenses I know I can trust getting always 100% service, knowledge and value. Good prices and highly valuable service this what makes them as a solid partner.
          Ben Richter
          CEO
          Ventures X
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          Great service and support, and very efficient communication with Maksim and the team. Our company has been successfully created with all the necessary licenses. Highly recommended.
          Thomas Zelias
          CEO
          UAB TalentChain

        Taxation of crypto companies and cryptocurrency transactions in Lithuania

        Taxation of crypto companies in Lithuania

        • Virtual currency exchange services are not subject to VAT.
        • Services provided and accounts paid in virtual currencies are subject to normal VAT rules.
        • The cryptocurrency company’s profits are taxed at a rate of 15%. A micro company with less than ten employees and less than 300,000 euros of gross annual income may be taxed at a reduced corporate tax rate of 0-5%.
        • Income tax (WHT) 15% is levied on distributed profits (dividends paid).

        Taxation of crypto transactions in Lithuania

        The taxation of transactions in virtual currency depends on the nature of the transactions. There is no direct tax if the token is sold or purchased similarly to a security, investment or other currency.

        Sales are considered normal/regular, even if payments for goods and services are received in virtual currencies. For accounting purposes, the transaction must have a value in euros and VAT rules are applied according to a normal transaction. Payment of goods or services in virtual currency does not exempt from VAT. If VAT is applied to payments in physical currency, it should also be applied to payments in virtual currency. VAT declarations must be submitted in euros and VAT will be paid / returned in euros.

        Financial Crime Investigation Services (FCIS/FNTT) as regulatory body in Lithuania for VASP

        The Financial Crimes Investigation Service, or FCIS (Lithuanian: Finansinių nusikaltimų tyrimo tarnyba or FNTT), a Lithuanian financial intelligence unit, is a law enforcement agency under the Ministry of the Interior. FCIS has primary responsibility for implementing measures to prevent money laundering and terrorist financing to ensure the effective functioning of Lithuania's anti-money laundering systems, as well as for investigating financial crimes and money laundering.Its primary mission is to protect the public financial system from criminal acts and other violations of the law that can undermine the reputation of the state.

        To achieve the goals of investigating financial crimes, FCIS is developing methods of combating criminal organizations, namely, active participation in the National Crime Prevention and Combating Corruption Program, and developing public communication strategies to engage society in the fight against financial crime.

        To prevent damage to the state budget, the Service identifies, investigates, and prevents any criminal financial acts, which include: theft of VAT, money laundering, manipulation of the tax system, and illegal receipt or use of financial assistance from the EU.

        The FCIS is the primary supervisory authority for the VASP. Companies must comply with their reporting obligations to the FCIS. This includes suspicious activity reports and cash transaction reports that arise from transactions (including related transactions) that exceed a threshold of €15,000.

        KYC/AML/CFT procedural rules

        This is a general and fundamental document necessary for the operation of VASP.

        KYC (Know Your Customer) is a mandatory customer identification procedure. It includes thorough selection procedures (criteria) as well as identification (passport/biometric data). In addition, they are used to track transactions and analyze them.

        Analysis occurs on all transactions and actions of a particular customer, identifying his or her typical traits and actions. If a customer makes an atypical transaction, the KYC officer should signal the need for verification

        AML (Anti-Money Laundering) - recognition of money laundering schemes based on the analysis of aggregated data.

        Suspicious transactions are detected by analyzing all the data that is available. The problem lies in the so-called false positives - transactions that are not part of the criminal scheme, but by algorithms look like this.

        Thus, AML cannot yet exist without human involvement. Specialists go through all transactions that the algorithm considers suspicious and, if necessary, correct the error

        What kind of activities is possible to conduct under crypto license in Lithuania

        Exchange crypto to crypto

        Exchange crypto to crypto

        Virtual Asset Service Providers (VASPs) may offer cryptocurrency exchange services in which the Client will be able to exchange cryptocurrencies for other cryptocurrencies. Since VASPs are not authorized to provide services for security tokens, an additional license from a financial institution will be required for this purpose. Based on this, having a Lithuanian cryptocurrency license provides the ability to provide exchange services, you need to do an analysis and make sure that by providing these services, no security tokens will become available.

        To ensure the continuance of prompt execution of orders it may be useful to work with several liquidity providers.If you want to work with security tokens, you should pay attention to opening an EMI license. Our company can advise you on this matter and assist you in opening licenses of different types and jurisdictions.

        Exchange crypto to fiat

        Exchange crypto to fiat

        The company may provide services for exchanging cryptocurrency for fiat currency. Using the services of a virtual asset exchange provider, a Client can exchange or sell available cryptocurrency for fiat currencies.

        If a financial institution plans to work with security tokens, it is necessary to open an additional financial institution license to ensure continuity of operational execution of orders it may be useful to work with several liquidity providers.

        Since VASPs are not authorized to provide security token services, a detailed analysis of exchange services must be done to ensure that they do not violate the law, as the license may be revoked if rules are violated.

        Exchange fiat to crypto

        Exchange fiat to crypto

        In addition to exchanging crypto for crypto, VASP may offer its clients the service of exchanging fiat funds for cryptocurrency. A customer can buy and sell existing cryptocurrency for fiat currencies using the services of a virtual currency exchange provider.

        In this case, as with crypto-to-crypto exchanges, when providing access to cryptocurrencies, the VASP must evaluate and ensure that no security tokens will be available. As a reminder, this type of license does not authorize a company to provide services for security tokens, a separate license from a financial institution is required.To accept payments in fiat currency from Customers, VASP must use the services of a digital payment system to accept payments into the VASP account either by bank transfer or by bank card payment.

        It can be useful to work with several liquidity providers and open several types of licenses to ensure continuity of operational execution of orders.

        Storage crypto on behalf of the users

        Storage crypto on behalf of the users

        The VASP may offer the wallet services within which the VASP opens the wallet for the Customer and private keys will be held under the control of the VASP.

        Wallets are digital offline (cold wallets) or online (hot wallets) based on key encryption. They are used to send and receive cryptocurrencies securely.

        VASPs can provide services in which personal wallet keys are created or stored and funds belong to the user, not the service provider. The Client can deposit, store and withdraw cryptocurrencies using this wallet. The company needs to take sufficient measures to ensure the safety of Clients' funds. When choosing a virtual wallet, customers primarily rely on the company's reputation, security, and guarantee of the preservation of their funds;these points should be approached with maximum responsibility.

        Store fiat for certain period of time (not specified timeframes by the law), but it should be exchanged in the end to crypto

        Store fiat for certain period of time (not specified timeframes by the law), but it should be exchanged in the end to crypto

        VASP may accept fiat currency as a prepayment for services (generally, to purchase cryptocurrency). This prepaid amount in fiat currencies may be reflected in the Client's account as a "balance in fiat currencies".

        To accept payments in fiat currency from Customers, VASP must use the services of a digital payment processor to accept payments into the VASP account via bank transfer or bank card payment, and a payment service provider to securely store fiat currencies.

        Informational services on the balance

        Informational services on the balance

        VASP has the authority to manage and safeguard cryptocurrency depository wallets belonging to clients, and store and provide clients with information services on balances, and incoming and outgoing transactions. Clients may request up-to-date information regarding their accounts.

        Please note that this information may be requested by regulators under KYC guidelines. Therefore, it is important to maintain ongoing analysis and reporting.

        On behalf of the clients order send crypto to the 3rd party

        On behalf of the clients order send crypto to the 3rd party

        VASP may offer services to transfer cryptocurrency from the Client's wallet to a wallet specified by the Client, being an intermediary.

        At the same time, the target wallet may or may not be located in the same VASP and may belong to the same Client or a third party. There are virtually no restrictions on location or recipient. The company providing cryptocurrency services can fully control this process, according to its authority.

        At the same time, during the provision of transfer services, it is important to apply due diligence measures through which the recipient's wallet is evaluated. For the reputation of the company, virtual service providers should provide the client with protection from fraudsters and in case of suspicious transactions, take proper security measures.

        ICO

        ICO

        The Lithuanian VASP can also conduct ICOs, in which an offer to buy its cryptocurrency is made for the first time through the VASP.

        ICO, or Initial Coin Offering (initial placement of tokens) - the issue of some project coupons or tokens, which are designed to pay for the services of the site in the future - in the form of cryptocurrency.

        Please note: businesses conducting ICOs are subject to several additional requirements under Lithuanian AML law, such as the obligation to provide the requested information regarding the ICO within seven business days (or less) of receiving the request from the Financial Crimes Investigation Service.

        To prevent a situation with possible license revocation, it is important to comply with all AML rules.

        Staking

        Staking

        VASPs have the right to use stacking as an additional tool to generate passive income from cryptocurrencies. Many blockchains use Proof-of-Stake consensus algorithms and their counterparts.

        This is a profitable alternative to classic cryptocurrency holding and is analogous to bank deposits in crypto. Yields can reach 10% per annum and higher. The main essence of the service is to block a certain amount of crypto-assets for a certain period, thus being able to keep the blockchain running - directly or through intermediaries.

        AML/KYC officer

        Every company that uses cryptocurrencies should have an AML/KYC Compliance Officer. A director or a member of the company's board must choose a person for this position. FCIS puts forward the basic rules for the selection of personnel:

        1. The person applying for this position must have the appropriate education, work experience, and skills necessary for risk assessment. In addition, the personal qualities of a person and reputation are of great importance here.
        2. The company must provide training to all employees involved in financial transfers. Employees in the state should be regularly briefed on how to identify illegal financial transactions, prevent assets laundering, and act in different situations.

        An AML officer must control all financial transactions and cooperate with clients, financial institutions, and regulatory authorities. It would be best if you gave the person you have chosen more power so that he or she can do their job well. An excellent solution would be to hold a high position, for example, a director or a member of the board. In this case, the employee will know all the features of the company's work better than any other employee.

        The AML officer has a relatively large list of responsibilities, which includes:

        1. Development and maintenance of an AML program;
        2. Information collection and analysis on suspicious transactions;
        3. Submission of statements of compliance with the relevant authorities;
        4. Supervision of high-risk clients and reporting of suspicious activity;
        5. Communication with FCIS in case of suspected money laundering;
        6. Development and maintenance of a risk assessment system for products and services;
        7. Monitor and implement an ongoing AML training program for other company employees;
        8. Reporting to senior management on matters related to internal AML policies and procedures, and more.

        It is also the responsibility of the AML specialist to carefully screen new customers and, if necessary, communicate with them. In addition, the specialist must supervise financial transfers for more than 15 thousand Euros (or equivalent in another currency).

        The specialist must intervene in the company's work if he notices false documents provided by the client or notices suspicion of money laundering.

        If you decide to obtain crypto license in Lithuania, then you can turn to our company for help. Professionals who know their work well work here, they are ready to take on both a small company and the creation of a large international cryptocurrency exchange. If you want to open an electronic crypto wallet, then you will also need a license for this.

        How to apply AML/KYC measures in Lithuania (FAQ)

        How to identify natural persons?

        VASPs must collect identification information and verify the identity of the Customer who is an individual and verify whether he or she is the actual beneficial owner.Verification of the Customer can be face-to-face or non-face with the use of technological means. Verification of the identity of an individual may be performed based on the following identity documents:

        • Identity card of the Republic of Lithuania;
        • An identity document of a foreign country;
        • Residence permit in the Republic of Lithuania;
        • A driving license issued in a state of the European Economic Area by the requirements laid down in Annex I to Directive 2006/126/EC of the European Parliament and of the Council of 20 December 2006 on driving licenses (redrafted).

        How to identify legal entities?

        VASPs must collect identification information and verify the identity of the Client and his/her representative, who is a legal entity, as well as identify the beneficial owners of the Client.The beneficial owner of the Client, which is a legal entity, is a natural person, whose direct or indirect participation or the sum of all direct and indirect participatory interests in the legal entity exceeds 25 percent, including participation in the form of shares or other forms of the bearer.Checks can be face-to-face and non-face with the use of technical means. Verification of the identity of a legal entity may be carried out based on the following documents:

        • The registration card of the relevant registry; or
        • a document equivalent to the above documents, or the relevant documents of the Customer's institution.

        When it is necessary to conduct KYC verification?

        Transactions between traditional currency and cryptocurrency from a verified trader are significantly more than those made by users with an unverified identity.

        And now this data is very valuable, as new investors and traders will more often use safe platforms to launch their cryptocurrency business. Thus, we can conclude that the application of the KYC procedure will increase confidence in legal entities and individuals who want to master the new financial sphere.

        What actions are required by Lithuanian law?

        It is necessary to perform due diligence on clients before entering into a business relationship with them or before conducting a single transaction (including related transactions) of EUR 1,000 or more. After the amendments to the Lithuanian AML/CFT law come into force, this threshold will be increased to EUR 700

        What documents should be gathered during verification process?

        To carry out identity verification, it is necessary to collect a document proving your identity. In the case of an individual, the identity document may be:

        • Identity card of the Republic of Lithuania;
        • An identity document of a foreign country;
        • Residence permit in the Republic of Lithuania;
        • A driving license issued in a state of the European Economic Area by the requirements laid down in Annex I to Directive 2006/126/EC of the European Parliament and of the Council of 20 December 2006 on driving licenses (redrafted).

        In the case of a legal entity:

        • The registration card of the relevant registry; or
        • Certificate of registration of the relevant registry; or
        • A document equivalent to the above documents, or the relevant documents of the Client's institution.

        What are the minimum KYC requirements?

        Due diligence measures application consist of:

        • The verification of Customers and their representatives (where applicable) identity;
        • Identification of the beneficial owner and their identity;
        • Collecting the proof of address document (Proof of address document may be, for example:
          • Utility bill;
          • Rental agreement;
          • Bank account statement;
          • etc.
        • Identification and verification of the proof of the source of wealth and funds of the Customer;
        • Customer’s PEP status verification
        • Sanctions list check
        • Identification of the purpose and nature of the business relationship;
        • Monitoring of the business relationship (incl, updating of the Customer’s data and monitoring of transactions)

        What are the limits for enhanced due diligence measures applicable?

        The precautionary measures should be applied in the case of:

        • When opening an account for a new client
        • When doubts arise about the authenticity of the documents provided by the client, as well as his data
        • If a KYC employee suspects money laundering or sponsorship of terrorism
        • And also, if the transaction (including related transactions) exceeds 15,000 euros, the source of the funds must be collected additionally from the Client as a cash transaction report must be sent to FCIS (which is caused by the 15,000 euro threshold).

        It should be noted that there should be no suspicious factors here and the obligation arises solely from exceeding the limit. Otherwise, the law does not set specific limits for the application of EDD, and any limits must be set by each VASP individually, depending on their risk appetite.

        Otherwise, EDD must be applied in cases where there are risk factors that create an increased risk of money laundering and/or terrorist financing (including the client's PEP status, relation to high-risk countries, cryptocurrency transfers, etc.) - minimal.

        Is the travel rule is necessary for Lithuania?

        Currently the travel rule is not implemented by the Lithuanian AML law, however, the new amendments to the legislation has implemented this requirement and it will be applicable in 2025.

        Additionally

        From November 1, 2022, the Lithuanian government adopts new legislation to regulate cryptocurrencies. They want to prevent the moment when the activity of "dishonest companies" can undermine the image of the sector. Deputy Finance Minister Mindaugas Liutvinskas said during a meeting with journalists that the government plans to create a licensing system at the national level before the adoption of the EU single regulatory law.

        "We support MiCA - it's an important and the right decision, but the EU law will not be adopted until 2025. We decided to take practical steps now and do all our homework to strengthen our regulatory framework," Lytvinskas says.

        The Deputy Minister of Finance believes that the state is obliged to prevent all negative consequences for investors. The draft will include requirements for companies, authorized capital, and special rules to combat money laundering.

        At the same time, the authorities criticize the EU for a too rigid approach to the supervision of cryptocurrency transactions and want to find a compromise between the interests of the state and the interests of investors.

        Prospects for a company with a cryptocurrency license

        For startups. If you are planning to start a cryptocurrency company, the ideal solution is to get a Lithuanian license for your business. The Lithuanian government creates favorable conditions for the development of young companies. You will be able to build a business in a loyal legal environment to regulate cryptocurrency activities with an attractive tax policy and minimal costs to obtain a license, which is very important for young companies.

        For existing businesses. Getting a cryptocurrency license will allow you to scale your business in a legal jurisdiction, attract investors and increase your income.

        For investors who want to scale a business - this is the most promising option in the European market.

        Lithuania meets all the requirements of investors: taxation, level of corruption, right to property, legal protection, bureaucracy, the government supports the development of technology and adoption of new laws.

        FAQ about Lithuania crypto license

        In which countries can a crypto licensed entity in Lithuania provide its services?

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        Lithuanian law does not expressly prohibit the geographic areas from which VASP can accept Clients.

        However, all possible risks must be identified and documented by each VASP. In the event of increased risk, appropriate and sufficiently extended due diligence measures shall be applied to Customers. In particular, those whose place of residence is in one way or another associated with a higher area of risks and violations of law.

        What steps are required to take?

        • Request a second identity document,
        • Requesting a document confirming the availability of funds,
        • Conducting additional searches in information databases,
        • Setting a limit on the allowed daily/monthly transaction, etc.

        What solutions can be used to monitor suspicious and nonstandard transactions?

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        Many service providers have emerged that offer transaction monitoring services to identify any suspicious and unusual activity and advertising transactions, as well as transactional activity that exceeds established thresholds (e.g., concerning reporting obligations).

        Transaction monitoring or "know your transactions" (KYT) procedures must be conducted promptly and must be able to detect multiple patterns and indications of possible suspicious and illegal activities.

        When selecting a KYT service provider, a company should evaluate the ability to select different settings in the service provider solution, the ability to utilize responsive customer support, and other important factors that VASP considers important to its effective operation.

        The most commonly used KYT service providers include Chainalysis, Scorechain, and Crystal Blockchain.

        Specialized programs help firms control the personnel screening process, allowing them to automatically identify high-risk clients and reduce the likelihood of human error and false positives. This is a multi-step operation that involves collecting and analyzing personal information from clients.

        To verify this data, institutions send the information to many independent third-party verifiers. Organizations compare it with the official database to confirm that the information is valid and meets the entire parameter.l

        Such monitoring, of course, can also be done manually, but a completely manual solution can only work effectively for VASPs whose transaction volume is very smal

        What are possible sanctions for failing to comply with the regulation?

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        If during the inspection, the Supervision Service of the Bank of Lithuania determines that the company is unable to properly identify customers, provide a report, etc. - sanctions may be adopted: fines, restriction of the company until the elimination of all deficiencies. This may also include negligent assessment of the individual risk of clients, lack of updating information, and improper execution of transaction analysis. In this case, after paying the fine, the company has a certain period to correct the errors. The VASP must provide a detailed plan of action to the regulator within 20 working days.

        Responsibilites of AML/KYC Officer

        Act as a point of contact for FCIS, send reports to FCIS, apply customer due diligence, and help management effectively assess and manage AMCTF risks. The KYC employee is responsible for registering clients and applying CDD and EDD measures, as well as applying ODD measures. Tasks also include responding to customer inquiries. AML officer responsibilities include tasks that help the Company assess and manage the risks associated with the provision of services as effectively as possible. Their tasks include training personnel, helping to create risk management policies, monitoring compliance with the Company's risk appetite, etc. The employee must provide written compliance statements to management, maintain suspicious transaction reports, and analyze all possible risks. If criminal activity is suspected, contact FCIS. The AML officer must introduce continuous monitoring, organize and conduct audits of external organizations, in addition, develop compliance recommendations.

        FCIS requirements to the AML/KYC officer

        The FCIS does not impose specific requirements.

        The officer must have the appropriate education, experience, and knowledge to perform his tasks, have experience in the financial sector, and have an impeccable reputation without a criminal record.

        The company needs to provide special training on measures aimed at preventing money laundering and terrorist financing for company employees, especially for the one who deals with customer relations and controlling transactions.

        Reporting obligations

        A company must report to FCIS on activities or circumstances that have been identified in the course of business and through which:

        • The Company has established that the Client is carrying out a suspicious operation;
        • The company knows or suspects that assets of any value are derived directly or indirectly from criminal activity or involvement in such activity.

        This reporting obligation must be fulfilled within 3 business hours of the discovery of the act or circumstance or the actual suspicion. In addition, VASPs must report to FCIS all transactions (including related transactions) amounting to or exceeding €15,000 in value. This reporting obligation must be fulfilled within 7 business days of identifying such a transaction.

        Are cryptocurrency transactions legal in Lithuania?

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        Yes, the use of cryptocurrency in Lithuania is legal. Cryptocurrency companies are regulated by the Money Laundering and Terrorist Financing Prevention Act, specifically Order No. V-5 of January 2020.

        Who can establish a crypto company in Lithuania?

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        Anyone (regardless of whether he is a resident or a foreigner) who has no criminal record can establish a cryptocurrency company.

        Which authority issues a cryptocurrency license in Lithuania?

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        The Firm shall submit a notification to the Financial Crime Investigation Service (FCIS. In Lt. FNTT) prior to initiating an operating activity

        What is the validity period of a cryptocurrency license in Lithuania?

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        The license to conduct cryptocurrency activities in Lithuania is issued for an indefinite period.

        How much capital do I need to deposit to open a cryptocurrency company in Lithuania?

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        Only companies with an authorized capital of at least 125 000 euros can obtain a work license.

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