What Is the Best Place to Get a Crypto License?
Based on your project’s goals and financial restraints, picking the best country to obtain a crypto license can be the thing that makes or breaks your business. Even though most regulations, advantages, and disadvantages are fairly similar throughout the Old World, there are still some jurisdictions that seem like more preferable options. As promised above, the best place to get a crypto license will be revealed shortly.
If you want to qualify for a cryptocurrency license in Europe, there’s no better option than Lithuania. This country’s lawmakers made a considerable effort to turn this nation into a blockchain business hub. Furthermore, the government simplified the process to get approved for a license so that everyone can benefit from a crypto license Lithuania.
At present, there are two types of licenses: Exchange and Wallet. The first type is for businesses that will provide e-money exchange services to their international clients. The latter type is for those that will provide crypto wallets and custodian services to their customers. Both differ greatly from each other, but the commonality is that it's very easy to get your hands on either type of license.
What Advantages Does Lithuania Have for Crypto Projects?
Obviously, there are more advantages that Lithuania has compared to other countries around the Old World. This country has a well-developed economy and government, but that's only the tip of the iceberg. Now is a good time to make a list of the reasons why Lithuania is an ideal country to get a crypto license in Europe:
- Friendly attitude towards blockchain technology.
- They are flexible when it comes to regulatory requirements.
- Businesses are given every possible opportunity to strive in this country.
- Clear legislation and easy compliance requirements.
- Lithuanian residency is not required for stockholders and directors.
- High economic stability and business confidence.
- It's possible to fund and run your business from abroad.
- Corporate tax rate of just 15%.
- This country is considered a Fintech hub.
- Lower-cost electricity.
The list of positives could go on and on and this is only the beginning. Every aspiring crypto entrepreneur should at least consider Lithuania as their future base of operations if they are interested in creating a business around cryptocurrency. It's a country that managed to transform itself into an ideal blockchain ecosystem and this should be an excellent starting point.
What Do You Need to Get a Crypto License in Lithuania?
To be eligible for a crypto license in Lithuania, you don't need to jump through all the hoops that are expected from regulatory bodies in other countries. This is the most crucial thing that people sometimes forget: Lithuania's list of requirements for a crypto exchange or wallet license is marginally different from that of other jurisdictions. It's better.
Here are the conditions you need to meet to qualify for a cryptocurrency license in Lithuania:
- You must create a legal entity in the country in form of a limited liability company (UAB
- You must have at least one stockholder and a director (who can also hold stock
- You must have an office (virtual or real
- You must possess a minimum capital of 2.5 thousand euros in the ban
- Members of the board have to have spotless reputations and no criminal recor
- You must have a set of internal rules and a code of conduct relating to AML/KYC compliance
A more exhaustive and up-to-date list of requirements can be found on an official website for Lithuania's business registry.
What Are Lithuania's Alternatives for Obtaining a Crypto License?
Obviously, Lithuania isn't the only country that you can go to for a crypto license. Many countries around the European continent have granted licenses for crypto exchanges and wallets to a large number of businesses, and it's up to you to decide whether you want to enter their market or not.
The best alternatives at the time of writing are Malta and Estonia. Each comes with its own set of advantages and disadvantages and requires additional research. Most crypto enthusiasts do prefer Estonia because of its vibrant Fintech industry, but Malta is considered to be a more favorable jurisdiction by many experts.
List of Documents for Obtaining a Crypto License
- Notarized IDs or passports
- Proof of residence
- Power of Attorney (in case you plan on establishing your business remotely)
- Curriculum vitae or a LinkedIn profile
- Certificate of no criminal record.
- Corporate charter and supplementary documents
- Proof of consent from all directors
- Documents confirming the existence of a legitimate bank account in Lithuania
- Detailed business plan, business valuations, and link to the official site.
Terms of Registration and Obtaining a Crypto License in Lithuania
Your chances of passing the crypto license test in Lithuania are highly dependent on the nature of your project. The same can be said about the stages of the process itself, but there's more clarity and transparency in it. Usually, it goes like this: paperwork preparation, verification and registration (~5 workdays), and final stages (~7 workdays).
All the most important requirements for a license were already mentioned above, but there are a few more things to think about before you start on this journey.