get a crypto license in lithuania

How to Get a Crypto License in Lithuania

Did you know Lithuania is setting the pace for cryptocurrency businesses in the European Union? With their clear and favorable regulations, they’re making it easy for these businesses to thrive. It’s exciting to see a nation embracing the future of finance in such a positive way! Since 2020, the country has established itself as a hub for Virtual Asset Service Providers (VASPs), attracting numerous startups and established companies. This article discusses obtaining a crypto license in Lithuania, covering benefits, requirements, and processes.

What is a Crypto License?

A crypto license is an official authorization from the Lithuanian government that provides legal permission for a business to operate in the cryptocurrency industry. It includes activities like running a cryptocurrency exchange platform, offering digital currency wallet services, processing payments, or providing advisory services.

The license functions as a special permit – almost like a passport – for a business to legally participate in virtual currency activities in Lithuania. It certifies that the company meets all regulatory requirements around cybersecurity, financial standards, anti-money laundering practices, and customer identification procedures.

Why Get a Crypto License in Lithuania?

Lithuania has developed clear and extensive regulations specifically around cryptocurrency businesses, known as Virtual Assets Service Providers (VASP). This regulatory framework helps create a fair, transparent, and stable environment for companies operating with virtual currencies.

A Lithuanian crypto license also grants a business passport-free access to the European Union common market. It significantly expands the addressable market beyond Lithuania’s borders.

Additionally, Lithuania is considered supportive of cryptocurrency startups and innovation around blockchain technology. So, you can consult the most trusted and affordable crypto licensing service in Lithuania. The government and regulators aim to provide resources, assistance, networking connections, and opportunities for new virtual asset companies. There are also tax incentives for IT and fintech businesses.

Types of Crypto Licenses Available

There are two primary types of cryptocurrency licenses available in Lithuania:

Crypto Exchange Platform License

This license allows a company to operate a cryptocurrency exchange platform – a marketplace where customers can buy, sell, and trade various virtual currencies. Think of it as a stock exchange specializing in digital currencies and assets.

Cryptocurrency Wallet/Custody Services License

This license permits a company to provide virtual asset wallet services and secure cryptocurrency storage solutions. Similar to offering savings accounts or personal vaults for digital assets and currencies rather than traditional money.

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Recent Updates to Regulations (2022/2023)

As of November 2022, Lithuania increased its financial requirements for starting licensed cryptocurrency establishments. The minimum capital threshold is now set at 125,000 EUR. It ensures firms have adequate financial resources to operate securely and maintain sufficient liquidity.

However, despite the rise in minimum capital levels, Lithuania’s application process to obtain a crypto license has remained straightforward compared to other jurisdictions. Ongoing compliance obligations are also clear, reasonable, and intended to support the growing blockchain/virtual asset industry.

Why Crypto Regulations Matter

Having regulations and oversight around cryptocurrencies helps ensure all industry players adhere to common rules and standards. It creates trust and stability. In particular, Lithuanian crypto regulations focus on:

Anti-Money Laundering (AML) Rules: Stringent procedures to prevent the use of cryptocurrency transactions for illicit activities like money laundering and terrorist financing. Ensures legitimacy.

Know Your Customer (KYC) Rules: Strict processes for cryptocurrency companies to identify and verify the identities of their customers. Minimizes fraud, money laundering, and other financial crimes.

Cybersecurity: Companies must implement robust measures to protect digital assets and virtual currencies from threats like hacking, malware, and theft. They are adding safety.

In general, regulations aim to protect both crypto businesses and their customers. Adhering to these rules enables sustainable long-term operations.

What are General Regulations 

Here are the general regulations for getting a cryptocurrency license in Lithuania:

Regulatory Information Requests

During the crypto licensing application process, the Financial Crimes Investigation Service (FCIS) may request additional details and an in-depth description of the planned cryptocurrency business activities. Providing complete and accurate responses helps facilitate license approval.

Post-Licensing Change Reporting

After acquiring a crypto license, any subsequent changes to the company’s structure – like ownership transfers, board member replacements, new beneficiaries, or employee additions – must be reported to the regulators to update the filed records. It maintains transparency.

Licensing Organization

The license application paperwork itself is provided by the Lithuanian Business Register and overseen by the FCIS – a specialized unit focused on financial crimes as part of the Lithuanian Police Force. They enforce the crypto regulations.

Applicable Regulations

Order No. V-5, issued in January 2020 around anti-money laundering and combating terrorism financing, applies to cryptocurrency firms. This order outlines mandatory “know your customer” identity procedures and control policies to uphold financial legitimacy and stability.

Cryptocurrency License Registration Process Step-by-Step


crypto currency license registration process

Here are step-by-step actions needed to apply for and receive a crypto license in Lithuania:

Establish a Registered Lithuanian Company Entity

First, you must set up an official Lithuanian business entity like a Limited Liability Company (UAB), which will apply for & hold the crypto license. This locally registered firm serves as the licensed operating company.

Ensure Sufficient Minimum Capital Levels

You need to maintain the regulatory minimum capital requirement of 125,000 EUR as funding to start your licensed crypto company. It must include liquid assets designated solely for the entity. Nevertheless, VASP can use formed share capital for the operational purposes (as operational funds).

Hire a Certified AML Specialist

Retain qualified staff like a Chief Compliance Officer well-versed in Lithuanian anti-money laundering (AML) and know your customer (KYC) regulations. It is mandatory to obtain an operating license.

Prepare and submit the License Application

Collate all relevant information, policies, and documentation of readiness, and complete the detailed crypto license application forms/questionnaires as per regulatory instructions. Application fees also apply.

Undergo a Compliance Audit (on periodic basis)

Your firm will be audited by regulatory supervisors (likely involving interviews, inspections, and document reviews). This extensive evaluation validates that you meet every regulation before getting approval.

Receive Formal License Approval

After adequately demonstrating full compliance through the audit, you will be formally granted your cryptocurrency operating license in Lithuania. It is the final step in enabling active, licensed operations.

Other Company Requirements

Additional criteria include:

  • Robust internal control systems for risk management
  • Designated compliance staff to enforce AML/KYC policies
  • Notifying the Financial Crime Investigation Service
  • Company directors and shareholders must have clean reputations and no criminal convictions

The licensing process involves

  • Registering a legitimate Lithuanian business entity.
  • Hiring qualified AML staff.
  • Preparing AML / CTF Policy and procedures.
  • Maintaining detailed customer identification records.
  • Satisfying “fit and proper” tests for shareholders/directors.
  • Submitting a comprehensive application package.

Benefits of cryptocurrency license in Lithuania

The advantages of getting a cryptocurrency license in Lithuania are:

Fast Setup

The licensing process enables companies to swiftly establish and implement their planned cryptocurrency operations or services in Lithuania—quick time-to-market. 2-3 weeks from the receipt of all required documents. 

Turnkey Business Model

Applicants can take advantage of consulting firms that offer end-to-end support in setting up fully compliant and licensed Lithuanian cryptocurrency entities on a ready-made basis—a turnkey solution requiring less effort.

Location Flexibility

Lithuania allows complete flexibility in where a licensed crypto company locates its activities and owners/directors reside. There is no requirement to have staff or physical offices in the country. Fully remote arrangements are permitted.

No Local Office Obligations

As highlighted above, one significant advantage is that licensed cryptocurrency providers in Lithuania are not obligated to maintain any physical business premises or operations inside the country. Allows global mobility.

Who Can Be Part of Your Crypto Company?

  • Owners: Anyone can be an owner, regardless of nationality or where they live.
  • Board Membership: Not necessary to form the board. Again, there are no restrictions on nationality or residency.
  • AML Compliance Officer: This person handles compliance with Anti-Money Laundering rules. They can be the same as the owner. They must understand the Financial Crime Investigation Service (FCIS) requirements and have relevant experience. Nationality and residency aren’t factors here, either.
  • Company Office: Your company should have an office, but using a virtual office is suitable.

Information You Need to Provide

  • Details of All Key Players: When applying, you must share information about your company’s essential people (Ultimate Beneficial Owners or UBOs).

Documents Required for License Application

  • Passport Copy: A valid passport from your country.
  • Power of Attorney (PoA): If you’re starting remotely, you’ll need a PoA.
  • Business Model: A clear description of what your company does.
  • AML / CTF policy and procedures.
  • Resumes: Information about the education and experience of the people involved.
  • Website Address: If you’re offering services online, provide your website’s address.
  • Criminal Record: A recent (less than 3 months old) criminal record check for owners, board members, UBOs, or the AML officer.

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Reporting Requirements

  • Tax Reporting: Your crypto company must keep accounts like any other Lithuanian company. There are no extra reporting rules for crypto businesses.
  • Regulatory Compliance: You don’t have to report to regulators regularly. However, the FCIS can ask for information about your activities, especially regarding AML/KYC practices, like collecting client data and sharing it with regulators if asked.

Costs for Obtaining a Crypto License

Here are typical costs associated with getting licensed:

Annual Maintenance Fees – Ongoing license retention/supervision fees of approximately 1,000 EUR per license yearly. Contributes to continued compliance monitoring.

Professional Services: Lawyers, consultants, auditors, and AML specialist staff represent additional professional service fees for successfully getting licensed.

Tax Obligations for Licensed Crypto Companies 

Standard Lithuanian business taxes apply to companies holding virtual asset/cryptocurrency licenses. The main tax categories include:

Corporate Income Tax: This is set at a rate of 15% on net taxable income. A licensed crypto company must pay a 15% corporate tax on profits.

Value-Added Tax (VAT) – A standard rate of 21% VAT applies to fees earned for exchange services, wallet fees, or other crypto asset service charges—strict VAT reporting rules.

Personal Income Tax: Employees of a licensed crypto company have 15% personal income tax deducted from any salaries, wages, bonuses, or other individual compensation they receive—payroll taxes.

Social Insurance Contributions: Like traditional companies, crypto-licensed firms must pay employees national social/health insurance contributions, with rates assessed on employee wages.

Consulting tax experts specialized in cryptocurrency regulations is advisable for more specific tax guidance & planning. Taking advantage of any available incentives.


Obtaining a cryptocurrency license in Lithuania is a straightforward and beneficial step for anyone looking to enter the digital currency market. It offers legal legitimacy, access to the EU market, and strong regulatory support. The process involves:

  • Setting up a company in Lithuania.
  • Complying with financial and AML requirements.
  • Submitting the necessary documentation.

This license is a key to unlocking vast opportunities in the evolving world of cryptocurrency.