What Is the Best Place to Get a Crypto License?
It’s difficult to answer this question with a high degree of certainty – every crypto-related project has its own set of roadblocks and challenges. Some projects are better suited for offshore jurisdictions and some would benefit from obtaining a license in Europe. With that being said, there’s still one obvious answer: Lithuania.
For a couple of years now, this Baltic country has been one of the most crypto-friendly jurisdictions in the European Union. Moreover, it offers numerous advantages, including a stable economic environment, transparent tax laws, and a highly-skilled workforce. The government seems to recognize the importance of digital money, so crypto license Lithuania seems to be a definitive pick for businesses that seek to gain a foothold in the industry.
What Advantages Does Lithuania Have for Crypto Projects?
The government of Lithuania established a very clear regulatory roadmap for digital money and that became a starting point for Lithuania to stand out among other jurisdictions. It is now recognized as a European fintech hub. The biggest upsides to building a business in Lithuania include:
- Favorable conditions for foreign investors and foreign crypto projects
- Transparent regulatory framework for businesses and entrepreneurs
- Immense availability of professional experts in the Fintech sector
- Straightforward requirements for projects in the crypto sector and related industries
- Good cooperation between the government and the Fintech community
- Easy to obtain a license for any and all crypto projects
- Quick setup of companies for crypto entrepreneurs
- Extensive knowledge in Fintech related services
- Unmatched cost-effectiveness
- The government has also put forward numerous initiatives to attract foreign investments
- No residency requirements
- Remote establishment
- Low corporate tax rate
What Do You Need to Get a Crypto License in Lithuania?
Since a few years ago, the crypto world has been abuzz with the news of leading jurisdictions adjusting their requirements and becoming sterner in terms of procedures. Lithuania is undoubtedly an exception. This Baltic country has uncomplicated requirements for crypto licensees and offers heaps of information regarding all the necessary documentation, making the entire process as easy and hassle-free as possible.
In order to get the license, you’ll need:
- ID copies of all participants
- CVs of all participants
- Minimal share capital of 2,500 Euros
- Lithuanian address for your business
- Good reputation with no prior criminal record
- Documents related to internal AML compliance
This list is incomplete and additional information can be found on the internet.
What are Lithuania’s Alternatives for Obtaining a Crypto License?
Currently, the top contenders for a crypto license include Estonia, the United Kingdom, and Portugal. Each option comes with its own set of advantages and drawbacks.
For instance, Estonia has 0% corporate income tax and your company can be established remotely. In addition, a license obtained in Estonia is very prestigious. The process of setting up shop in this country is uncomplicated but it’s not as simple as what Lithuania can offer.
Both the UK and Portugal are considered to be more prestigious crypto jurisdictions since they require a hefty amount of paperwork and verification. While getting a permit in Portugal is not difficult, in comparison to Lithuania, the UK is more demanding.
List of Documents for Obtaining a Crypto License
To get a crypto license, you’ll need to hand over all the required documents, including: a copy of your state-issued ID, PoA, company business description (one-pager), official site address, AML officer contact information, and additional individual financial details for your business.
It’s important to note that the full list of documents required to obtain a license in Lithuania can be found on official resources or can be found on sites that belong to companies that specialize in crypto business registration.
Terms of Registration and Obtaining a Crypto License in Lithuania
The process of registering a business with the government can be divided into several steps. The first one is to sign an agreement with a company. Then, you are expected to prepare the necessary paperwork to either acquire or register a company. Depending on the type of your business, this could entail preparing additional documents regarding, for instance, internal AML/KYC guidelines. After that, the government will contact you to notify you of a successful purchase or registration. It usually takes no more than five workdays. After that, you’ll need to prepare an application for a suitable crypto business license.
The Financial Crime Investigation Service normally takes up to twenty workdays to verify the information about the company and your partners. After that time, the FCS will be obliged to issue you the license if the decision is made in your favor. From that point forward, you can freely run your crypto business and your license is valid for the life of your company.