Сrypto exchange license in Lithuania
Cryptocurrency is an incredibly popular asset that attracts millions of users worldwide. It is most common in the USA, Singapore, and Australia, and gradually it begins to fill the whole of Europe. No countries in the EU prohibit the use of cryptocurrencies entirely, but most have not yet managed to develop precise mechanisms for their regulation. Getting a cryptoexchange license in Lithuania is a good choice for those who prefer to work legally and do not want to have problems with the law. This country is one of the few that have made sure that the crypto industry feels as comfortable as possible.
Why is it essential to get a work permit?
Some crypto companies say they do not want to receive a crypto exchange license in Lithuania because they do not see a particular need.
This approach is fundamentally wrong. The local government cares about the financial security of its citizens, so they monitor various organizations and, if they work illegally, block their websites and open criminal cases against the founders.
Thus, if you do not want to have the law problems, you must immediately obtain a cryptocurrency license. It will become a kind of immunity for you.
In addition, many crypto enthusiasts prefer to work only with licensed companies. It is the most significant proof that you are not conducting fraudulent activities, and in case of disagreement, any issues can be resolved in the legal field. Most users know that such organizations care about their reputation and are afraid of losing their license, so they try to solve problems in favor of the client.
So, if we summarize all of the above, we can highlight the following advantages of obtaining a license:
- No problems with the law;
- Increasing confidence on the part of government bodies;
- An increase in the number of regular users;
- There are more development opportunities.
If a company wants to develop harmoniously, it must take care to obtain a license to operate on time. It is becoming the most reliable way to increase your earnings and brand credibility and simplify your work principles.
Who should apply for an exchange license?
According to the Lithuanian government, there are 2 main ways to make money on cryptocurrency: on the stock exchange and e-wallets.
In the first case, earnings go on exchanging cryptocurrencies for cryptocurrencies or fiat currencies (and vice versa). The principle of operation here is very similar to the usual exchange of fiat currencies, which we are used to in banks or other exchangers.
As for crypto wallets, earnings come from the sale of equipment (if it is a hardware version), from staking or commission. The level of earnings here is lower, but it is more stable and has lower system maintenance costs.
A separate license has been developed for each of these types of earnings. If you are engaged in two kinds of profits simultaneously, it makes sense to obtain both permission types.
Requirements
Lithuania tried to make obtaining a license as simple as possible. So, among the essential requirements are:
- The applicant must be a legal entity;
- The company must employ at least 2 people;
- The company must be registered in Lithuania and have a local website;
- The authorized capital of the organization must be more than 2500 Euros;
- There should be a security specialist who will regularly submit activity reports.
Both the owner of the company and his/her authorized representative can apply for a license. In the second case, you need to draw up a power of attorney in advance.
The main requirement put forward by the regulatory authorities is the excellent reputation of all team members and especially the creator of the organization and security specialists.
Members of your company should not have a history of legal troubles, and you should not be involved in fraudulent transactions or financial crimes. All data about your team will be carefully cross-checked.
So, if the regulatory authorities find problems in filling out the documentation, they will allow correcting everything, eliminating errors. However, if you are suspected of fraud, you will not receive a license.
Also, if, after obtaining a license, you have criminal connections and you try to pull off fraudulent transactions, the permit will be immediately revoked. It will not be possible to resume this due to trust issues.
If you want to work, you need to act openly and legally, and then there will be no problems.
Conclusion
Obtaining a crypto exchange license in Lithuania is an excellent solution for those who want to work legally in the EU. This country does not put forward complex requirements for candidates, and it tries to create the most suitable and understandable working conditions for the crypto business. A work permit will allow you to develop harmoniously, attract more clients and not be afraid of problems with the law.
