Audit Whale

In 2020-2021, there have been major changes in Estonian legislation regarding the licensing of crypto exchange activity: an increase of the minimum authorized capital, the transfer of the company's management body to Estonia, a change in the supervisory authority, and other planned changes.

These complications and the significant overburden of the whole process started to raise questions among potential applicants to register crypto exchange companies in Europe. Moreover, the owners of existing crypto exchangers are questioning the durability of their licenses. This issue became especially acute after the announcement of the new head of the Estonian Bureau to revoke all issued licenses.

In this regard, the Law and Trust specialists conducted large research, forming and constantly maintaining a list of countries with alternative solutions for a crypto exchanger.

Lithuania is included in the list of jurisdictions whose legislation is more loyal to permits for crypto activities, without trying to burden it with bureaucratic and financial components. Let's consider it in more detail.

Lithuania as the largest country of the Baltic states is generally known for its reputation as an economic center. Due to the stable and strong economy, an entrepreneurial friendly environment of this state encourages foreign investors to register a company in Lithuania.

The main feature and characteristic of the implementation of crypto exchange activity in Lithuania, in contrast to similar instruments provided in many EU countries, including Estonia, is the legislative possibility of a notification procedure for obtaining permission for a company to carry out crypto exchange activity, without the necessity of obtaining a specialized license. Thus, a Lithuanian company will need to apply with specifying type of activity (crypto exchange) that it is going to carry out by attaching a package of necessary documentation, and comply with the requirements of KYC and AML, after which the authorized body will make a decision on entering it into the register.

Registration advantages of crypto exchange activity in LITHUANIA.

Lithuania and particularly its capital Vilnius has become a new center for fintech companies focused on international financial markets. Business-oriented regulatory behavior and significantly lower registration, licensing, and maintenance costs for financial institutions make Lithuania attractive for large international financial institutions as well as for fin-tech startups. The benefits also include:

Advantages

Simplicity. Minimum procedural requirements and bureaucratic burden of the process. The result will be only the company entry into the Register, without the need to obtain supporting documents and other attributes of bureaucracy
Low costs. You only need to pay for the company registration, the authorized capital, as well as preparation and submission of documents
No requirements for the residence of the company director and shareholders
Terms - from 3 weeks
Taxes. Corporate tax of 15% is one of the lowest rates in the EU
Remote registration format. There is an opportunity to register a Lithuanian company remotely
No requirements for hiring local staff

Registration requirements of crypto exchange activity in Lithuania

At least one director. And no requirements for the director's residence
Director's qualification requirements: education related to the activities of financial organizations or other specialized institutions, as well as experience in this area in leadership position
The number of shareholders is from 1 to 250. The shareholders can be both individuals and legal entities. There are no residency requirements for shareholders
A legal address in Lithuania is required
The minimum authorized capital required is 2,500 euros
Concluded agreement with an AML officer for communication with the state authorities of Lithuania

Documents for registration of crypto exchange activity in Lithuania

Passports for each shareholder of the company or a set of statutory documents of the parent company, notarized, with apostille
Passport for the director of the company (for each of the directors, if there are several)
Curriculum Vitae
Certificate of good conduct
Power of attorney for company registration
Consent of all directors
Statute
Report of the constituent assembly
Confirmation of opening a bank account in Lithuania
Additional information may be requested by government agencies during registration

The process of registering crypto exchange activity in LITHUANIA

Register a unique name
Prepare a notarized power of attorney in case of remote company registration in Lithuania
Register a legal entity address in Lithuania and open a bank account
Provide identification data and attach copies of personal documents of directors/shareholders
Register in the Tax Office
Submit an application to the AML bureau for the company entry in the register

The cost of registering crypto exchange activity in LITHUANIA

The cost of registering a company is from 2640 EUR (depends on the chosen legal address, the number of company members, and the availability of remote registration).

Opening an account for depositing the authorized capital - 750 EUR.

The cost of support during registration of crypto exchange activity is 3900 EUR.

Cryptocurrency License in LITHUANIA