Cryptocurrency License, Lithuanian vs Estonian
Comparing Lithuanian and Estonian crypto companies involved in the exchange, storage of cryptocurrencies and maintenance of crypto wallets, you should pay attention to the fact that in Lithuania you will receive full service and assistance. This is actual for those who do not have local associates, that purposely request necessary licenses and certificates from relevant authorities and companies. A crypto company will need cooperation with financial companies, liquidity providers, user verification specialists (KYC / AML) and some others.
Comparison of the Lithuanin and Estonian cryptocurrency licenses
Here are the main differences that we get as a result of comparing the conduct of a crypto exchange business in Lithuania and Estonia:
- License in Lithuania is allotted by the Registry and regulated by the Central Bank of the country. In Estonia operates special Financial Intelligence Unit;
- Approved company in Lithuania has a formal public status, which is a reference in the Companies Register; Estonian public link is issued certificate separately in PDF right from the controller;
- If there is no need to obtain a VAT number, Lithuania does not insist upon a domestic real office;
- In Lithuania company need a skilled Executive, though not necessarily from this state;
- Lithuania demands a certified 3rd party compliance to maintain transaction control, as well as KYC, but there is no obligatory to be a Lithuanian inhabitant;
- Lithuania holds an authorized company in the public status, this is a link based in Company Registry – Estonia has a public link directly from the regulator with a separate PDF certificate;
- Lithuania has no restrictions of least capital, while in Estonia it is limited to no less than EUR 12000;
- A Lithuanian State fee is approx. EUR 180 and only up to 4 weeks of timing to consider the license application, while Estonian crypto exchange states fee is EUR 3300 and up to 12 weeks to consider the license application;
- Lithuania does not need a criminal record (unless the owners and directors are publicly listed with negative information);
- Average pay for accounting, compliance and selling is up to 10-20% cheaper than that in Estonia;
- If the proprietors and management are not openly placed on the negative list Lithuania does not demand a criminal report.
It turns out that Lithuania provides more freedoms and fewer restrictions for obtaining a license for a cryptocurrency operator than Estonia, in which, in the opinion of many members of the business community, excessive regulation is currently taking place.
How to open crypto exchange and wallet operations company in Lithuania?
To obtain a cryptographic license in Lithuania, we must contact the regulatory body and provide the Bank of Lithuania with claim papers. Then make the UBO system evaluation and provide and or revise the AML statutes following the law of Lithuania.
In Estonia, businesses cannot initiate a bank account because of inner bank policies. Therefore mostly you cannot hold alike country IBAN. In Lithuania monetary system can present resolution with the idem country IBAN, as it has over a dozen of companies, which work with digital assets.
In addition, while the Lithuanian certification occurs, the firm uses a nonpermanent account for equity funds, which further turns into a conventional current account for organizational goals. This account then is used for multiple objectives, as an acquisition of financing, earnings from different accounts of the firm and much more.
After collecting and checking all the necessary KYC information for two weeks for each account separately, transactions in the systems, SEPA, EUR SWIFT, GBP, USD, internal, white-label and other banking transactions will become available to you with our assistance.
Registration and keeping the license for a crypto exchange requires following steps:
Info collection and arrangement of documentation. There are two ways to prepare everything you need to register a crypto company in Lithuania.
The first method involves the appointment by the owner of the company of a power of attorney with an apostile to open a savings bank account and authorization to act on behalf of the new owner. To do this, you will need to sign papers at a notary, attach an apostille and carry them to the capital of Lithuania.
The second way is to use our services and we will complete all the items from the list below, except for 1 and 8-10 for you, saving you time and a lot of effort.
Steps are as follows:
- The authorized agent will approve the Incorporation papers and mail them;
- After the papers are held we will attach the place of registration;
- Open a savings bank account of the newly created company, and the proprietor will oblige to transact the authorized capital of 2500 euros to the savings account;
- Once receiving the certification of deposited share capital from the bank, we will be proceeding with the notary where Signing the foundation documents;
- Listing in the Commercial Register within 5 working days;
- Provide in the stockholder notice information;
- When the firm was established the executive must turn the savings account into a current account if needed; in addition, we will provide valuable advice, so we will save the account, which will then allow you to use it for transactions with crypto assets;
- Transfer of the company's stocks following the signed contract on the transfer of shares; for that apostille or certificate is not required;
- Signing for the appointment of one of our solicitors and issuing a power of attorney to serve the enterprise before the Bank of Lithuania;
- Completion and compliance of the application forms for authorization of the virtual currency and wallet storage operator. Preparation of AML rules, UBO verification and authorization applications.
What is next after the registration of the firm and authorization of crypto exchange?
Further ALT Accounting is the service we provide as well. We will support you in managing your bank account. ESI code (Elektroninių sertifikuotų išrašų) and JADIS (Juridinių asmenų dalyvių informacinė sistema) are the two things you should know to handle your crypto enterprise in Lithuania.
ESI Code means an Electronic certified statement. The code is modified on every firm review and requires to be acquired distinctively by the approved agent. The ESI documents complete partnership features.
JADIS.In translation from Lithuanian, the abbreviated name suggests an Information system for participants in legal entities, or something like the Shareholder register. If you are listed by transference of stocks, this registry is refreshed, but in the case of PoA, exclusively an approved delegate of the organization can fill out the JADIS application.
How to verify if a firm has a legitimate exchange/wallet operator license?
Now the single method to examine the license validation is the website of Lithuanian Commercial Registry at https://www.registrucentras.lt/jar/p/. When the company features have been submitted the principal of them will be presented following the small D icon. If the license is currently valid you see the inscription: "Pranešimas juridinių asmenų Registro tvarkytojui apie vykdomą virtualiųjų valiutų keityklos operatoriaus ar depozitinių virtualiųjų valiutų piniginių operatoriaus veiklą" which means "Notification to the Registrar of Legal Entities about the activities of a virtual currency exchange operator and a virtual currency wallet operator"
Which body in Lithuania governs the license of the crypto exchange/wallet operator?
The license application is filed with state registries, which also carry out UBO inspections. But, since cryptocurrency exchanges are not rated completely guaranteed by financial companies, they are not recorded on the Bank of Lithuania website. When the listing has been submitted, the Financial Crime Investigation Service (FCIS) is liable for inspection of business enterprises and presenting requests to support that each AML / KYC method is complied with as demanded by legislation. FCIS does not openly distribute the records about persons it commands.
What to do if the Regulation is not accepted by liquidity, banking, or other partners?
In the past, we had experienced requests from several non-Lithianian EU institutions to recognize Lithuanian crypto authorization. ALT Accounting will thus organize a Legal memorandum that confirms your company to be eligible for the legislation and its registration to legally provide virtual currency exchange services.
What if the Regulations are not admitted by allies?
We have got inquiries from one of the largest cryptocurrency exchanges and various Swiss monetary organizations to see the Lithuanian cryptocurrency permission. ALT Accounting will create a Legal Memorandum proving that the firm is qualified to the authority and its certification to legislatively present crypto assets services.
What inspection does FCIS make?
FCIS is the governing organization that constantly inquires for several statements from cryptocurrency services. For instance, the enterprise has to maintain updating of documents of TOP clients schedule, TOP activities record, economics statistics, etc. The corporation must continuously archive complete consumer KYC, and retain a database with all events by classifying them. This data must include the purchaser's full name, passport scan, evidence of residence, country of habitation, consumer ID, wallet ID, transaction ID, payment ID, AML scoring and wallet AML Analysis report ID, deposit amount, the value for liquidity and organization net fee.
What are anti-money laundering laws and who enforces them?
Under the service request, we arrange a conventional assemblage of AML laws that complies with all relevant statutory laws concerning the enterprise and submit to the Bank of Lithuania. The commands specify the way the Company will settle and assure sufficient methods to combat money laundering and terrorist financing. Inward schemes of following the orders by the enterprise, must be explained inside at MLRO.
Are accounting services needed?
According to the country's legislation in Lithuania, all companies must maintain precise accounting reports. You can weigh about € 150 per for a start and about € 200 pay on monthly basis. These plans cover accounting statements for 10 deals per month, except fiat for crypto and crypto transactions. Be sure you regard that several Lithuanian government bodies may issue inquiries for the organization.
Can a Lithuanian company work with crypto globally?
No limitations are reckoned for a Lithuanian cryptocurrency operating company with the specified license to present and sell its services globally. The only condition that must be met is following AML and KYC terms. Although, a Lithuanian crypto license does not confer passport benefits and it is recommended to make full due diligence with the relevant regulatory authorities in other countries, where you intend to work.