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Criteria for Regulation of Crypto Business in Lithuania

More and more entrepreneurs are starting to think about opening a crypto business. This is mainly due to the great interest in this industry and most civilized nations have already developed systems to regulate it. A Lithuanian crypto exchange license It’s a good choice for anyone who wants to work in the EU within the limits of the law. There are several benefits to getting this work permit, but most importantly, increasing the trust of our clients.

How does Lithuania feel about the crypto industry?

The modern world is divided into three major parts.

1. People who support the development of the crypto industry;

2. People who are categorically opposed to it.

3. And those who do not yet fully understand the importance of this phenomenon in world society.

Lithuania certainly belongs to the first category. This was the first time we had developed a system to regulate (not just ban) the crypto business. Of course, we haven’t touched on all aspects of the industry’s activities, so there’s still work to be done here, but all decisions are logical and consistent. This allows the legislative framework on this issue to develop in harmony.

Another point worth discussing is the attitude towards SMEs. The government of the country is trying to do everything to make it function and develop steadily. Cryptocurrency companies have a standard tax rate of 15% (currency exchange is not subject to VAT), and small organizations with 10 or less people are required to pay taxes in the range of 0-5% of their profits. It’s a big difference and a great gift for those who are just starting their business journey.

How can the crypto business operate legally?

To stay calm and have no legal problems Lithuanian crypto exchange license..

Some of the most important benefits of getting a work permit are:

  • Opportunity to work without fear of legal issues.
  • Ability to solve problems in the legal field.
  • Increase the level of trust on the client side.
  • Increased number of clients.
  • Opportunity to cooperate with national banks.

Owners of some exchanges want to stay in the shadows, avoiding taxes and government regulations. That leads to the fact that the crypto business is associated with the world of fraud and crime by many ordinary people.

The problem is that there are exchanges that want to serve users who act anonymously. Keep in mind that such features are of interest to criminal elements and a few other users who do not want to track transactions. Otherwise, they can use the services of ordinary banks.

One of the requirements of cryptocurrency exchanges advocated by regulatory agencies is the ability to validate client data and provide information about user transactions. According to the authorities, this will allow them to quickly catch crypto criminals (which certainly exist). However, this principle of operation goes against the main idea of ​​creating cryptocurrencies.

After obtaining a license, each company must provide a report on its activities on a regular basis. If you do it at the wrong time and make a mistake, this may be the reason the system revokes the license.

FCIS may also do this if it becomes aware of a criminal element or association with fraudulent activity. If a dissatisfied client contacts a regulatory agency and provides evidence of illegal activity, they can quickly lose their license. This is one of the reasons why all disputes must be resolved in the client’s favor. If you don’t, you can lose even more. Even the most miniature scandals can lead to the loss of trust in you from other customers. Like other types of activities, the cryptocurrency business relies heavily on public opinion and the reputation of the company.

How to get a work permit?

Obtaining a crypto license has never been as easy as it is today. You need to register your company, collect some documents and apply to the regulatory agency.

The company must meet the following requirements:

  • At least two people are employed.
  • We have staff with experience in security systems that produce reports for regulatory agencies.
  • The website must be registered in Lithuania.
  • I have a bank account.

But the most important criteria to get Lithuanian crypto exchange license The reputation of the founder and members of all companies. Regulators are required to provide resumes and non-conviction certificates for all employees. If a person in your state was previously convicted of fraud or tax evasion, you will not receive a work permit.

As you can see, these requirements can’t scare you if you plan to work honestly and openly. It is a state of law that respects a person’s desire to grow in professional activity (if this is not related to a breach of law).

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