Obtaining a crypto license in Lithuania activities is a necessary procedure for virtual asset service providers. Thus, all companies that carry out a number of operations related to cryptocurrencies must go through a licensing process. Requirements for licensees may vary depending on the chosen jurisdiction and peculiarities of the legislation. More information on the site.
In recent years, the ways in which assets are exchanged and managed, as well as the field of financial technology in general, have developed rapidly and have undergone significant changes. Cryptocurrency exchanges and blockchain technology are changing the pace of development of assets and the financial sector, and are attracting increased interest from both government bodies and entrepreneurs.
Any trading business involving fiat-to-cryptocurrency or crypto-to-fiat exchanges requires a crypto license (or special approval from the financial authorities) or cooperation with a licensed bank/payment processor.
What is a crypto license?
A cryptocurrency license is a special permit issued by authorized regulatory bodies that grants the right to conduct business related to crypto assets in the territory of a particular state.
Different countries use different approaches to resolve the uncertainty in the field of the crypto business regime. Some states are trying to create a strong legal framework to gain better control over the cryptocurrency markets (Malta, Estonia, Switzerland, Australia), while others prohibit any transactions with cryptocurrencies (Indonesia, Namibia, Algeria, etc.).
Among the countries that are popular among businessmen who want to obtain a license for crypto exchange, the following are usually distinguished:
Estonia
Estonia is considered one of the first countries to introduce the legalization of business based on blockchain and cryptocurrencies. To start a cryptocurrency exchange business, an exchange must be registered in Estonia or have a registered local branch, follow KYC procedures, etc. In addition, the exchange must obtain a license in accordance with the Law on the Prevention of Money Laundering and Crime Financing.
Lithuania
To date, obtaining a crypto license in Lithuania is considered a more affordable alternative to an Estonian license, since the Estonian government significantly tightened the requirements for candidates last year. Lithuania, on the other hand, is characterized by a favorable environment for fintechs and a more loyal regulatory regime.
United States
In the US, cryptocurrency trading is regulated both at the federal and state levels. Crypto assets classified as securities must comply with the requirements of the SEC (Securities and Exchange Commission). In addition, you must comply with AML requirements and other US federal regulations.
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