Remotely establish your own cryptocurrency Exchange Company in Lithuania
Lithuania is one of the few European countries where it is possible to do legal business with cryptocurrencies. The Lithuanian government has created a highly favorable regulated environment for companies performing cryptocurrency exchange services. Those regulations also favor companies offering cryptocurrency wallet services.
The Financial Crime Investigation Service is the entity responsible for issuing permits to conduct business with cryptocurrencies in Lithuania. This entity issues two types of licenses: one for cryptocurrency exchange and one for crypto-wallets and custody services.
The company with a license for cryptocurrency exchange in Lithuania can exchange fiat currency into cryptocurrencies and vice versa. It can also exchange between different cryptocurrencies. It receives a commission for each transaction as part of the services offered.
Steps for obtaining a cryptocurrency exchange license
The first step is to register a company in Lithuania or to purchase one that is already registered. Once this is done, it is possible to apply for a license from the Lithuanian Financial Crime Investigation Service. This license has no expiration date, nor does it need to be renewed. It is important to clarify that the incorporation of the company and obtaining the license can be done online, without the need to visit the country.
It is not necessary to be a resident of Lithuania to own a crypto-company registered in Lithuania. However, non-residents will have to submit further documentation to the local authorities. Among the requirements is a criminal record certificate issued by the owner’s country of residence.
A bank account must also be opened in one of the Lithuanian banks in order to obtain the license. The capital authorized by the company must be deposited in this account. The minimum deposit is 2,500 euros. These funds must be fiat, as cryptocurrencies are not accepted.
After registering the company, depositing the share capital and having the criminal records of all members, the investor applying for the cryptocurrency exchange license in Lithuania will have to undergo a KYC (know your customer) process.
The licensed company must have a physical office in any province of Lithuania. This office may be visited by the regulator when deemed appropriate. The regulator may request in writing information about the clients of that company. Therefore, it is imperative that the company keeps a record of all its clients for the last five years.