Disclaimer: the term "cryptolicense" in this text should be understood as a permit to carry out activities as a virtual asset service provider (VASP). The use of the term "cryptolicense" is intended solely to simplify the perception of the text by clients and website visitors.
Lithuania is rapidly gaining momentum, becoming one of the most attractive European centers for the development of cryptocurrency businesses. Thanks to its progressive and transparent cryptocurrency legislation, stable economy, and developed technological infrastructure, this Baltic country offers unique and favorable conditions for companies seeking to enter the competitive European cryptocurrency market.
Obtaining a cryptolicense in Lithuania is not just a permit to operate. It is your key to the vast European Union market with over 450 million potential customers. It is an opportunity to increase the trust and loyalty of your customers and partners who value reliability and transparency. It is also a guarantee of legal security and protection from unpredictable changes in legislation.
Lithuania is ready to become your reliable partner in the world of cryptocurrencies. Learn more about how a cryptolicense in Lithuania can open up new horizons for you and ensure the success of your business in the European market.
Lithuania created a new regulation for VASPs in 2023 and currently this state is the closest to future MICA standards
Key Numbers about Cryptolicense in Lithuania
8 weeksaverage term of obtaining cryptolicense |
€125,000share capital for both new and existing VASPs |
€8,000cost of cryptolicense under the minimum regulatory requirements |
15%corporate income tax (CIT) rate |
up to 32%personal income tax (PIT) rate |
21%value added tax (VAT) rate |
Legal Opinion about Cryptolicense in Lithuania
Ganna Voievodina
Manimama, CEO
"As the CEO of Manimama OU, I strongly recommend the Lithuanian cryptolicense. It is an ideal solution for all market players - both startups and well-known enterprises. Lithuania is one of the few countries that are practically ready to implement MiCA, which will save your business from headaches in the future. For personalized information based on your business profile, feel free to contact us for further cooperation."
Types of Activities with a License in Lithuania
Cryptocurrency-to-cryptocurrency exchange: companies with a cryptolicense are authorized to conduct exchanges between various virtual assets, including utility tokens and coins.
Custodial wallet services: using cryptocurrency storage wallets, companies with cryptolicense offer a secure way to store cryptocurrencies on behalf of users, with the option for operators to open wallets while maintaining control over private keys.
Crypto transfers: companies with a cryptolicense provide secure cryptocurrency transfer services from client wallets to designated third-party wallets, offering an alternative to traditional fiat bank transfers.
Account statements issuing: companies with a cryptolicense have the right to display balances and issue account statements and transaction details.
Cryptocurrency-to-fiat and fiat-to-cryptocurrency exchange: companies with a cryptolicense facilitate conversions between cryptocurrency and fiat currency, offering clients flexibility in conducting transactions in multiple currencies.
Crypto processing and crypto acquiring: companies with a cryptolicense can provide services that allow merchants to accept cryptocurrency as payment, with subsequent transfer of the cryptocurrency to the merchant or its conversion into fiat currency.
On-ramp and off-ramp services: companies with cryptolicense have significant business development opportunities, including providing B2B services such as on-ramp, off-ramp, and white-label products, which Manimama is ready to help launch, including connecting payment providers.
Token sales: last but not least! Companies with a cryptolicense have the right to conduct ICOs, offering utility tokens and limited-use e-money tokens.
Benefits of Obtaining a Cryptolicense in Lithuania
Choose the Package of Services
Popular package
Premium
Full range of necessary services for setting up a company with a cryptolicense with connection to KYC providers, C2B account for crypto transactions
- Company formation in Lithuania
- Registering share capital (€125,000)
- Registered address for 1 year
- Individual AML/KYC policies
- Registration as VASP within commercial registry
- Registration of VASP activities within FCIS/FNTT
- Search, integration, direct employment agreement for exclusive, local, experienced AML/KYC officer
- Opening of the banking account for the share capital (€125,000)
- Opening C2B account for crypto activities
- Setting up KYC/KYT provider
Advanced
Creation of a company with a cryptolicense, ready to start operations
- Company formation in Lithuania
- Registering share capital (€125,000)
- Registered address for 1 year
- Individual AML/KYC policies
- Registration as VASP within commercial registry
- Registration of VASP activities within FCIS/FNTT
- Search, integration, direct employment agreement for exclusive, local, experienced AML/KYC officer
- Opening of the banking account for the share capital (€125,000)
Basic
Creation of a company with a cryptolicense
- Company formation in Lithuania
- Registering share capital (€125,000)
- Registered address for 1 year
- Standard AML/KYC policies
- Registration as VASP within commercial register
- Registration of VASP activities within FCIS/FNTT
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Step by Step Description
Step 1. Creation of a company
Formation of a company with the opening of an account in a credit institution of the Republic of Lithuania or a credit institution of a member state of the European Union with a branch in the Republic of Lithuania with a contribution to the authorized capital in the amount of €125,000
Step 2. AML/KYC procedural rules
Creation of an individual package of documents, including AML/CFT procedures, risk assessment policy, configuration of KYC configurations with the necessary levels of verification for individuals, legal entities, and merchants
Step 3. MLRO search
Search for an MLRO with subsequent integration into the corporate structure; training; tax registration; setting up access to reporting in FNTT/FCIS
Step 4. Obtaining the cryptolicense
Obtaining a cryptolicense (VASP authorization) and entering the company in the register of Lithuanian cryptocurrency companies
Understanding Requirements in Lithuania
A cryptolicense in Lithuania involves registration in a special cryptocurrency register in accordance with the requirements established by law
Lithuania has taken a significant step in regulating the cryptocurrency market by introducing a crypto licensing process. This is a comprehensive approach that ensures transparency, security, and trust in the country's cryptocurrency sector.
A cryptolicense in Lithuania is not just a permit, but a mark of quality that confirms compliance with high standards of financial reliability, transparency, and security. Obtaining such a license is the result of a thorough investigation of the company by the Financial Crime Investigation Service (FNTT).
This regulatory body ensures fair competition and protects the interests of investors and users. It conducts a check of each applicant, including an assessment of financial stability, risk management systems, procedures for combating money laundering and terrorist financing, as well as the qualifications of personnel.
Only companies that have successfully passed the inspection and proven their compliance with high standards receive the right to obtain a cryptolicense and be included in a special register. This ensures that only reliable players operate in the Lithuanian cryptocurrency market, which increases confidence in the market.
Thus, a cryptolicense in Lithuania is a confirmation of a high level of professionalism, reliability, and responsibility of the company. This is an important step in creating a stable and transparent cryptocurrency market that contributes to innovation and economic growth of the country.
Requirements for Obtaining a Cryptolicense in Lithuania
To get a cryptolicense, it is necessary to contribute a share capital of €125,000, hire an AML officer who is a resident of Lithuania, and develop appropriate AML/KYC procedures
A cryptolicense in Lithuania is the key to successful activity in the field of virtual assets. However, before obtaining this valuable document, it is necessary to go through the procedure of registering a company in a special register of cryptocurrency companies. To do this, you need to fulfill the following requirements:
- The minimum authorized capital of the company must be €125,000 (this rule applies to new and existing VASPs from August 1, 2024)
- The funds of the company forming the share capital shall be deposited to an account in a credit institution of the Republic of Lithuania or a credit institution of a member state of the European Union with a branch in the Republic of Lithuania (by August 31, 2024, existing VASPs are obliged to form their share capital in full (€125,000) and transfer funds to a credit institution of the Republic of Lithuania or a credit institution of a member state of the European Union with a branch in the Republic of Lithuania)
- The company is obliged to appoint an AML officer who is a resident of Lithuania and fluent in Lithuanian
- The company must develop and implement comprehensive AML/KYC procedures
- The company is obliged to report all transactions in the amount equivalent to or exceeding €15,000, as well as suspicious transactions to its regulatory authority - the Financial Crime Investigation Service (FNTT)
Compliance with these requirements is not only a formality but also a guarantee of successful and stable operation in the Lithuanian cryptocurrency market. A cryptolicense opens up wide opportunities for business development and ensures a high level of trust from customers and partners.
Taxes in Lithuania
The basic corporate tax rate in Lithuania is 15%, but rates of 0% and 5% may also apply, and we know how to do this
In Lithuania, the process of obtaining profit from the activities of licensed cryptocurrency companies is regulated by a tax system.
Cryptocurrency exchange services are not subject to VAT, but the requirements for issuing invoices in virtual assets comply with the usual VAT rules.
The basic corporate income tax rate is 15%. If the company's activities include the commercialization of research inventions (i.e., use, sale, or other transfer), then the tax rate is 5%.
Newly established businesses that meet certain requirements are subject to a 0% tax rate for the first tax period. Then they are taxed at a rate of 5% for subsequent tax periods. These requirements include:
- the average number of employees does not exceed 10
- income during the tax period does not exceed €300,000
- the shareholders of the legal entity are only individuals
- the activities of the legal entity should not be suspended, such a person should not be liquidated/reorganized, and the shares of the legal entity should not be transferred to new shareholders for the next three consecutive tax periods, including the first tax period
Income tax rates for individuals in Lithuania are 20% and 32% and depend on the level of individual income. This regulation is established by regulators to control taxes on profits from cryptocurrency activities.
Frequently Asked Questions
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What is a cryptolicense in Lithuania?A cryptolicense in Lithuania is an official permit issued by the Financial Crime Investigation Service (FNTT) that allows companies to legally conduct activities related to virtual assets, such as exchange, storage, transfer, and other operations.
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What are the benefits of obtaining a cryptolicense in Lithuania?Obtaining a cryptolicense in Lithuania offers several advantages, including access to the European market, increased trust from clients and partners, the ability to cooperate with traditional financial institutions, as well as legal protection and transparency of activities.
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What types of activities does a cryptolicense in Lithuania allow?A cryptolicense allows for various activities related to virtual assets, including the exchange of cryptocurrencies for fiat money and other cryptocurrencies, the provision of cryptocurrency storage services (wallets), the organization of platforms for cryptocurrency trading, as well as other services related to virtual assets.
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Which authority is responsible for issuing cryptolicenses in Lithuania?The Financial Crime Investigation Service (FNTT) under the Ministry of the Interior is responsible for issuing cryptolicenses in Lithuania.
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What are the general requirements for obtaining a cryptolicense in Lithuania?General requirements for obtaining a cryptolicense in Lithuania include registering a company in Lithuania, having a minimum authorized capital, appointing an AML officer, developing and implementing AML/KYC procedures, and complying with other legal requirements.
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What is the minimum authorized capital required to obtain a cryptolicense?The minimum authorized capital for obtaining a cryptolicense is €125,000.
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Is it necessary to have an office in Lithuania to obtain a license?Yes, to obtain a cryptolicense, it is necessary to have a registered office in the country.
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Are there any residency requirements for the company's directors and employees?Yes, the residency requirements for company directors and employees depend on the specific terms of the license, but usually, it is required that at least one director or key employee be a resident of Lithuania.
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What are the requirements for the company's AML officer?The AML officer of a company that receives a cryptocurrency license in Lithuania must have appropriate qualifications, be a resident of Lithuania, and be fluent in Lithuanian.
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What documents need to be submitted to obtain a cryptolicense?To get a cryptolicense in Lithuania, you must provide a package of documents, including the company's incorporation documents, business plan, description of AML/KYC procedures, information about the company's management and employees, and other documents confirming compliance with legal requirements.
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What are the stages of obtaining a cryptolicense in Lithuania?The process of getting a cryptolicense includes several stages: preparation of documents, submission of an application to the FNTT, review of the application by the regulator, obtaining a decision, and, in case of a positive decision, obtaining a license.
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How long does the licensing process usually take?Usually, the process of obtaining a cryptolicense takes up to 2 months, depending on the complexity of the project and the quality of the prepared documents.
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What are the costs associated with obtaining a cryptolicense in Lithuania?The costs associated with getting a cryptolicense in Lithuania include government fees, payment for the services of lawyers and consultants, as well as other expenses related to the preparation of documents and ensuring compliance with requirements.
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What to do after obtaining a cryptolicense?After obtaining a cryptolicense, it is necessary to comply with all the requirements of the regulator, including submitting reports, complying with AML/KYC procedures, and other rules established by law.
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What reports need to be submitted to the regulator after obtaining a license?Companies with a cryptolicense are required to regularly submit reports to the FNTT, including financial statements, transaction reports, and other documents provided for by law.
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What rules and restrictions apply to companies with a cryptolicense in Lithuania?Companies with a cryptolicense in Lithuania must comply with all rules and restrictions established by law, including rules on AML/KYC, client data protection, cybersecurity, and other requirements.
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Is it possible to change the type of activity after obtaining a license?Yes, it is possible to change the type of activity after getting a cryptolicense in Lithuania, but it requires prior approval from the regulator and making appropriate changes to the license.
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What happens if a company violates the terms of the license?In case of violation of the terms of a cryptolicense in Lithuania, the company may be subject to penalties, up to the cancellation of the license.
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How to renew or cancel a cryptolicense in Lithuania?To renew a cryptolicense, it is necessary to submit an appropriate application to the FNTT before the license expires. The cancellation of the license can be initiated by both the company and the regulator in case of violation of the license terms or other legal requirements.
Client Feedbacks
"Manimama provides a full range of services: from obtaining a license to connecting all payment methods and exchange accounts, building legal models for all kinds of our ideas. Together we launched OTC, crypto-processing, on-ramp solutions".
"Working with Manimama OU was a smart choice. They made the crypto licensing process in Lithuania straightforward, proving their efficiency and expertise. When the time came for changes, lawyers, as always, warned us and helped to adapt the company to new regulatory requirements".
"Manimama OU made getting our crypto license in Lithuania a breeze. Their efficient and knowledgeable team simplified the process for our crypto exchange".
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