lithuania

To obtain a cryptocurrency license in Lithuania, a series of steps must be completed, including the following:

• company registration; 
• opening a bank account;
• depositing authorized capital;
• submission of relevant documents.

These documents include notarized copies of passport documents for company founders, power of attorney (PoA), data on the business model, founders’ CVs, certificates of no criminal record, and the website address of the crypto company.

Registering a company and obtaining a cryptocurrency license in Lithuania can be challenging without professional assistance, given the country’s rigorous standards for combating fraud and money laundering. CLS’s team of specialists can provide expert advice and guidance throughout the entire process, keeping you up-to-date on the latest developments in Lithuania’s dynamic crypto market.

Taxation:

Corporate income tax in Lithuania is set at a rate of 15%. However, companies meeting specific criteria can receive a reduced rate of 0% or 5%, provided they:

• have fewer than ten employees;
• earn no more than 300,000 EUR per tax period;
• are owned by individuals;
• remain operational with no changes in ownership for at least three tax periods. 

Dividends are taxed at 15%, while the standard VAT rate is 21%, with reduced rates of 9% and 5% available.

Authorized capital requirements:

For businesses seeking to obtain a crypto license in Lithuania, the authorized capital requirement is set at 2,500 EUR.

Entities engaged in cryptocurrency-related activities in Lithuania must meet specific requirements, including the following: 

• The company’s board members or owners must have a spotless reputation.
• Regular reporting is required. 
• Legal entities must have an anti-money laundering (AML) officer responsible for ensuring compliance with relevant regulations.

To maintain their license, cryptocurrency companies in Lithuania must operate with impeccable standards, as they are subject to monitoring and investigation by the Financial Crime Investigation Department (FIU).

Lithuania stands out as a crypto-friendly destination and an attractive jurisdiction within the European Union.

Local financial market participants are legally allowed to use cryptocurrency for various needs, and the country is committed to enacting laws that protect crypto investors and combat fraudulent activity.

What sets Lithuania apart is its status as one of the few EU countries that grant licenses to crypto businesses. This coveted license assures investors looking to enter European markets and allows foreign investors to operate within the jurisdiction’s financial market with official recognition.

The Central Bank of Lithuania actively drives the development of crypto-related technologies, ensuring smooth and secure payment processes. This forward-thinking approach demonstrates the country’s flexibility regarding cryptocurrency legislation.

The Lithuanian crypto license is necessary to perform the following types of activities:

• The scope of services offered by cryptocurrency exchanges includes facilitating fiat currency exchange for cryptocurrencies and vice versa. 
• Provide virtual wallets for storing customers’ digital currencies.