Types of cryptocurrency registration
- Cryptocurrency exchange operator (when the company exchanges cryptocurrency owned by the third parties and earns commission)
- Cryptocurrency depository wallet operator (when the company manages or stores digital assets of clients – f.e BTC, ETH)
Requirement for crypto company in Lithuania:
Company registration in Lithuania is mandatory and its activity shall be separated from the licensed traditional finance activity (f.e payment institution, payment service provider) – a separate legal entity
Preparation of needed policies for the provision of virtual currency activities
Drafting and implementation of AML/KYC control measures (AML policy, KYC policy, Risk Assessment)
- Members of the Management Board (Directors) as well as Ultimate Beneficial Owners (UBOs) of the Crypto company shall to meet the requirements of irreproachable reputation, that means:
- They cannot be sentenced for infringements related to private ownership, economic and business order, financial system, civil service or any public interest.
- Shareholders/Ultimate Beneficial Owner need to pass the Investors Assessment Commission (IAC).
- Approval of the Commission is required for all the investors (shareholders) planning investments into the Lithuanian financial sector.
- Cryptocurrency license holders are supervised by Financial Crime Investigation Service (FIS).
A company that has issued a cryptocurrency license from Lithuania needs to follow general requirements:
- Identify and verify customers upon starting a relationship or when the operation exceeds a certain amount
- Report to Financial Crime Investigation Service (FIS)
- Keep records up to date and data of clients based on requirements
- Appoint AML Officer
- Appoint Local MLRO, who shall be fully experienced in AML and should be Lithuanian residents – we can provide this service on request.
- Implement internal control policies and procedures based on requirements ( on request )
- Cryptocurrency company needs to be separated from licensed financial institution (EMI or any other).
Our offer for crypto companies:
- Arrangement of the documents for IAC
- Drafting of the company incorporation documentation meets legal requirements set to Virtual Currency Operators and limited liability company registration
- Preparation of the AML Policy, KYC Policy based on FCIS requirements (Risk Assessment on request), Adaptation of existing AML policies
AML compliance officer must have a Lithuanian personal identification number or have an e-resident ID (https://www.migracija.lt/noriu-tapti-elektroniniu-rezidentu) in order to provide STR/CTR reports through the electronic government gateway while logging in through platform https://www.epaslaugos.lt/portal/service/33641/36020?searchId=b6433ae1-b00c-47b7-b8e1-dee3065cfb1c. Access to the platform requires permission from FCIS.
In order to operate as VASP a legal entity must be registered (https://www.registrucentras.lt/p/49), there are no special requirements for the establishment of such a legal entity.
Based on the Article 25 Part 4 of the Law on the Prevention of Money Laundering and Terrorist Financing a legal person that has commenced or terminated the activities of a virtual currency exchange operator or a custodian virtual currency wallet operator shall, not later than within five working days from the beginning or end of the activities, inform the data processor of the Register of Legal Entities about the activities of the service provider of the virtual currency exchange operator and the custodian virtual currency wallet operator or the end of such activities. By providing this information, the virtual currency exchange operator and the custodian virtual currency wallet operator shall confirm that he or the members of his management or supervisory bodies and the beneficial owners are familiar with and meet the requirements of legal acts on the prevention of money laundering and terrorist financing.