The Lithuanian Central Bank insists that the activities of traditional financial institutions and cryptocurrency companies be separated. In this case, virtual assets can be in the circulation of traditional market players.Applications for crypto licenses in Lithuania can be submitted by companies or subsidiaries of companies that are both residents and non-residents of the EU. To prevent the legalization of the proceeds of crime, the activities of crypto operators are controlled by the appropriate legal institutions. Board members as well as owners of the company must meet the requirements of impeccable reputation, such as no criminal record.
The license for the establishment of electronic money in Lithuania is issued on an indefinite basis. This license is issued by the supervisory authority, gives the right to issue electronic money and provide services for placing money in settlement accounts, as well as the operations required for the operation of such an account.
Services allowing withdrawal of funds from the settlement account Execution of payment operations, including transfer of funds to the settlement account of the user of payment services from the provider of payment services or with another provider of payment services: Debit write-offs, including one-time debit write-offs, execution of payment transactions through a payment card or similar device and execution of credit transfers, including orders for permanent payments.
Execution of payment operations for which funds are covered by the credit line of the user of payment services: debit write-off, including one-time debit write-off, Execution of payment operations through a payment card or similar device or execution of credit transfers, including orders for permanent payments.
Execution of payment operations, on which the consent of the payer for execution of payment operation is given by any telecommunication terminal equipment, digital or IT device and payment is made in telecommunication network or IT-system of the operator acting only as an intermediary between the provider of goods or services and the payment service user.
Companies operating in the cryptocurrency market are required to undergo verification and identification, recording of customer data. The introduction of internal control procedures is mandatory, An officer responsible for compliance with the policy on countering legalization – proceeds of crime (AML Policy) should be appointed. Reporting to the Lithuanian Regulator (Financial Crime Investigation Service) is mandatory.
There is no specific legislation regulating financial technology. However, if a fintech company provides financial services, it is subject to supervision by the Bank of Lithuania and is subject to separate laws establishing a regulatory framework for specific fin services. In particular, the following activities are considered financial services that require authorization of the Bank of Lithuania: receipt of deposits, consumer lending, payment and electronic money, conclusion of transactions, investment services, provision of securities issuance services, management of investment funds, storage, accounting and management of financial instruments, crowdfunding, peer-to-peer lending services. The Law of the Republic of Lithuania on Combating Money Laundering includes virtual currency and electronic wallet service providers in the list of enterprises that are now subject to AML requirements, such as customer identification and verification, monitoring and suspension of transactions, reporting to competent authorities and providing information on a separate request. It should also be noted that the regulator has stated its position on virtual currencies and ICOs in Lithuania. If the proposed crypto assets have the characteristics of securities, an issue prospectus approved by the regulatory body must be drawn up and the transactions with such assets must comply with other requirements of the Securities Act.