Crypto License in Lithuania: Main Guidelines in 2024

What is the VASP regulation in Lithuania?

Crypto businesses in Lithuania are regulated and licensed according to the latest amendments to the 1997 Law on the Prevention of Money Laundering and Terrorist Financing. The licenses have been issued since 2018 in two main types: a crypto exchange license in Lithuania and a cryptocurrency depository wallet operator. If a startup combines both business models, it is possible to apply for both licenses at the same time.

Such benefits as budget-friendly pricing, comparatively light licensing framework, and the possibility of a fully remote operation of a company make Lithuania one of the most attractive jurisdictions for registering crypto businesses not only in Europe but all over the world.  

How to get a crypto license in Lithuania? 

The process for obtaining a Lithuania cryptocurrency license is overseen and regulated by the Central Bank of Lithuania through the Financial Crime Investigation Service (FCIS). The framework is also heavily influenced by the EU crypto asset regulations, mainly in regard to the AML-CFT compliance guidelines.

Before submitting a licensing application, a Limited Liability Company (UAB) must be established with a legal address in Lithuania. The successful Lithuania company formation opens the doors to further VASP licensing for a young crypto startup. After the LLC is established, the owner must obtain a corporate bank account to deposit the starting share capital, prepare the AML/CFT policies of the company, and hire a responsible AML Officer who must be a resident of Lithuania and speak Lithuanian. 

Is it possible to open an EMI in Lithuania?

Lithuania is the most popular European jurisdiction that issues EMI licenses. The eponymous Lithuania EMI license issued by the Central Bank of Lithuania allows for the operation of Electronic Money Institutions, remittance services, and other FinTech startups. The most prominent example of a successful business holding this banking license is Revolut.

The latest European crypto regulation, Markets in Crypto Assets (MiCA), will transform the issuance process of the payment institution license Lithuania. Only banks and EMIs will be allowed to provide services with the so-called e-money tokens (EMTs) that reference an official currency issued by the bank, as opposed to the asset-referenced tokens (ARTs) that do not reference any official currencies. Consequently, if your startup revolves around operations with EMTs, you will be obliged to obtain an e-money license Lithuania. 

How will MiCA influence the Lithuanian VASP license?

Following along on the topic of MiCA, the Lithuania crypto license will not avoid the changes under the new regulations either. Apart from the new title, CASP (Crypto Asset Service Provider), which will fully replace the well-known VASP and a new categorization of tokens, there are several other aspects in which MiCA will influence the licensing conditions in Lithuania after its last leg is enforced in December 2024. 

LegalBison closely monitors the implementation of MiCA, including its influence on the Lithuanian VASP and EMI licenses. We are ready to advise you on the launching of your business while taking into account all the legal subtleties. Learn more about the CASP license in Lithuania here.