Crypto license in Lithuania

What is it all about?

/Cryptocurrency-related subjects can occasionally be intricate and perplexing. Hence, prior to  commencing our discussion, let us ensure that we establish a common understanding and foundation. /

Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates  on blockchain technology and is decentralized, meaning that it is not subject to any central  authority, such as a government or financial institution. Cryptocurrencies have been gaining  popularity in recent years, and with their growing use, there is an increasing need for  regulatory frameworks to ensure their safety and legality.

Lithuania is one of the countries that have embraced cryptocurrencies, and it has put in place  regulations that govern their use. On this page, we will discuss the crypto license in Lithuania  and how Star Legal can help to obtain it.


What is a crypto license?

A crypto license is a permit that allows a company to provide cryptocurrency-related services  legally. The license is a requirement for companies that want to offer cryptocurrency  exchange services, electronic wallet services, or other related activities.

What Lithuania has to do with it?

/In what manner do the terms “crypto licenses” and “Lithuania” intertwine, and what is the underlying  cause for the elevated level of excitement and interest surrounding this association? / 

Lithuania has become an attractive destination for companies seeking a crypto license to  expand their operations in Europe and worldwide. The country has established itself as a  global fintech center and offers clear regulations, low maintenance costs, and skillful  employees, making it an ideal location for crypto businesses.

The actual licensed activity is registered with the State Enterprise Centre of Registers,  management of the AML and CFT policy are overseen by Financial Crime Investigation Unit. There is a possibility to obtain 2 types of crypto licenses:


Cryptocurrency exchange operator license

Enables legal entities to provide services for exchanging fiat to crypto, crypto-to-fiat, and crypto-to-crypto.

Cryptocurrency depository wallet operator license

Enables legal entities to manage clients’ cryptocurrency depository wallets.

What types of crypto licenses are available in Lithuania?

In Lithuania, there are 2 types of crypto licenses available for companies that want to  provide cryptocurrency-related services:

  • Virtual currency exchange service provider (VCESP) license: This license is required for  companies that want to offer cryptocurrency exchange services, including crypto-to crypto exchange, exchanging virtual currencies for fiat currencies, and vice versa.
  • Virtual currency wallet service provider (VCWSP) license: This license is required for  companies that want to offer cryptocurrency wallet services, which involve storing,  transferring, and managing virtual currencies on behalf of their clients.

Both licenses are registered with the State Enterprise Centre of Registers, and companies are  overseen by Financial Crime Investigation Unit which ensures that companies comply with  the AML/CFT regulations, capital requirements, and other criteria. Obtaining a license can  provide companies with legal certainty, credibility, and access to the worldwide markets.


Obtaining a crypto licence in Lithuania

/We recognize the significance of deep knowledge in the field when taking decisive steps. Avoiding  information overload and ensuring certainty in your actions can be challenging. Seek the guidance of  experienced professionals of Star Legal to streamline your decision-making process and minimize  confusion. /


Benefits of obtaining a crypto license in Lithuania

Obtaining a crypto license in Lithuania provides significant benefits to businesses operating  in the cryptocurrency industry. Here are 7 key benefits:


Obtaining a crypto license in Lithuania provides legitimacy to your business. It shows that  your business is operating in a regulated environment and complying with the laws and  regulations. This can give your customers confidence in your business and attract more  investors.

Access to the European Union market

Lithuania is a member of the European Union, which means that obtaining a crypto license  in Lithuania gives you access to the EU market. This can be a significant advantage as it  allows you to offer your services to customers across the EU without having to obtain  licenses in each individual country.

Reduced risk of legal issues

Operating without a license in the cryptocurrency industry can put your business at risk  of legal issues. By obtaining a crypto license in Lithuania, you can reduce this risk and  protect your business from potential legal problems.

Access to banking services

Many cryptocurrency-related businesses struggle to access banking services due to the  high risk associated with the industry. However, Lithuania is a global fintech center and  has many crypto-friendly banks which will be able to open a bank account for your  Lithuanian-based company.

Competitive advantage

By obtaining a crypto license in Lithuania, you can differentiate yourself from other  cryptocurrency-related businesses that are operating without a license. This can give you  a competitive advantage and help you attract more customers and investors.

Regulatory clarity

Lithuania has clear regulations for crypto businesses, providing legal certainty for  companies operating in the market.

Pro-business environment

Lithuania has a pro-business environment, with a streamlined registration process and a  supportive government that encourages innovation and entrepreneurship.

Comparison with other countries

Lithuania is not the only country that offers crypto licenses. Several other countries, including  Estonia, Malta, Gibraltar, and Switzerland, also offer crypto licenses. Here is how Lithuania’s  crypto license compares to those offered by other countries:

Estonia was one of the first countries to offer a crypto license. The license, known as the  Virtual Currency Service Provider (VCSP) license, is issued by the Estonian Financial  Intelligence Unit (FIU). The application process is similar to Lithuania’s, but the  requirements are slightly different. For example, companies applying for a VCSP license  must have a local director, whereas this is not a requirement for a crypto license in  Lithuania.

Malta offers a Virtual Financial Assets (VFA) license, which is issued by the Malta Financial  Services Authority (MFSA). The application process is more complex than Lithuania’s, and  the capital requirements are higher. Companies applying for a VFA license must have a  minimum of 730,000 euros in share capital.

Gibraltar offers a Distributed Ledger Technology (DLT) license issued by the Gibraltar  Financial Services Commission (GFSC). The capital requirements are like Lithuania’s. The  capital requirement is currently 125 000 EUR.

Switzerland offers a FinTech license, which is issued by the Swiss Financial Market  Supervisory Authority (FINMA). Switzerland’s reputation as a global financial hub, strong  investor protection, and favorable tax environment make it a popular choice, although  the requirements are more strict in comparison to Lithuania. Companies applying for a  FinTech license must have a detailed business plan, an experienced team, and a technical  infrastructure in place.

In general, in Lithuania regulatory burdens are less strict compared with other countries, and  overall licensing costs are lower. The application process is straightforward, and the licenses  can be obtained faster compared with other jurisdictions. This makes it an attractive option  for cryptocurrency-related businesses looking to operate in a regulated environment.

On the other hand, companies should consider their specific business needs and target  markets to determine which jurisdiction aligns best with their requirements. Thus, taking  advice from legal professionals is recommended. Star legal will consult you and help to make  an informed decision.

Are there any tax benefits for crypto businesses in Lithuania?

Lithuania offers several tax benefits for crypto businesses. The corporate income tax rate is  15%, which is lower than the average corporate tax rate in Europe. Moreover, newly  established entities are eligible for a 0% tax rate on their taxable profits for the first taxable  period. The tax rate increases to 5% if the income does not exceed 300,000 EUR. These tax  benefits can significantly reduce the tax burden for crypto businesses operating in Lithuania.  Additionally, the country has a simple and transparent tax system, making it easy for  businesses to comply with the regulations.

In general, the business of Virtual Asset Service Providers (VASPs) is not subject to value added tax (VAT) in Lithuania. This exempts certain types of crypto transactions, such as the  sale and exchange of cryptocurrencies, from VAT. Therefore, crypto businesses can operate  without the burden of VAT on these transactions, contributing to potential cost savings and  increased profitability.

Having all of this in mind, the tax benefits offered by Lithuania make it an attractive  destination for crypto businesses looking to establish their operations in Europe.


Concluding answer about Lithuania being a suitable country for the crypto business:

With all the information given above, the conclusion is very clear. Lithuania has become an  attractive location for crypto businesses due to its favorable regulatory environment,  strategic location, and talented workforce. The country has been proactive in creating a  business-friendly environment for startups, and its government has been supportive of the  fintech industry. Additionally, Lithuania’s membership in the European Union provides  businesses with access to a large market and various benefits, such as access to banking  services and reduced regulatory barriers.

Obtaining a cryptocurrency license in Lithuania can provide businesses with the opportunity  to expand their operations to the European market. Lithuania has a low corporate income tax  rate of 15%, and a tax rate of 0% is applied to taxable profits of newly established entities for  the first taxable period. For companies with income that does not exceed 300,000 EUR, the  tax rate is only 5%.

Moreover, the country has a high level of IT education and is home to several renowned  universities, such as Vilnius University and Kaunas University of Technology. This has led to a  thriving startup scene, with many innovative companies emerging in recent years.


/Ensuring utmost clarity in every step of the process to eliminate any possibility of errors and avoid time consuming detours. /


The procedure consists of the following steps:

Star Legal will help you determine the type of license you need

As we mentioned earlier, the licensed activity is registered with the State Enterprise Centre of Registers and companies are overseen by Financial Crime Investigation Unit. There is a possibility to obtain two types of crypto licenses: crypto exchange operator  licese, which enables legal entities to provide services for exchanging fiat to crypto,  crypto-to-fiat, and crypto-to-crypto and cryptocurrency depository wallet operator  license, which enables legal entities to manage client’s cryptocurrency depository wallets.

Establish a legal entity

To apply for a crypto license, you need to establish a legal entity in Lithuania. The best  legal form to structure your crypto business is limited liability company. Star Legal will register your company with the Lithuanian Register of Legal Entities and provide proof of  its share capital.

Prepare the necessary documents

Star Legal will prepare a set of documents that demonstrate your compliance with the  regulatory requirements, such as the company’s articles of association, the AML/CFT policy. You will also need to provide documents that prove the absence of criminal records  of the management bodies.

Implement the AML/CFT measures

Cryptocurrency-related businesses in Lithuania are subject to strict anti-money laundering  and counter-terrorism financing regulations. Star Legal will consult your business and help  to implement the necessary measures to comply with these regulations, such as customer  due diligence, record-keeping, and reporting suspicious activities.

Apply for the license

After the previous steps are completed Star Legal will apply for the crypto license to the  State Enterprise Centre of Registers.


/ It is imperative to acknowledge that not everything is inherently straightforward upon initial  observation. The landscape is replete with specific regulations and prerequisites that necessitate  comprehensive understanding and adherence to undertake any course of action. / 

What are the requirements for obtaining a crypto license in Lithuania?

To obtain a crypto license in Lithuania, companies must fulfill particular requirements. These  requirements aim to ensure that crypto companies operating in Lithuania adhere to strict anti-money laundering and counter-terrorism financing regulations.

  1. One of the most important requirements is the need for companies to have a registered minimum capital requirement of 125 000 EUR. This requirement ensures  that companies have enough funds to cover any potential losses, ensuring they can meet their financial obligations.
  2. Established anti-money laundering (AML) and counter-terrorism financing (CTF) policy. This policy outlines the measures that the company will implement to prevent  money laundering and terrorism financing. It should include risk assessment  procedures, customer due diligence measures, and ongoing monitoring requirements.
  3. Company management bodies must provide the documents proving the absence of criminal records. The State Enterprise Centre of Registersrequires this documentation  to ensure that companies are operating with integrity and transparency.
  4. Implementation of the AML solutions to comply with Lithuanian AML & CFT requirements. This includes implementation of the client verification solutions to  verify your clients before onboarding, as well as transaction monitoring solutions to  monitor incoming and outgoing transactions on the blockchain.
  5. VASPs must have a local employee responsible for AML and CTF. This person must be  trained and knowledgeable in AML and CTF regulations and will be responsible for  ensuring the company’s compliance with these regulations. Legal recruitment  specialists will find and recruit skillful specialists to ensure that your company has  strong AML & CFT procedures management.


Overall, obtaining a crypto license in Lithuania requires companies to fulfill requirements  related to the Lithuanian AML & CFT law and specific capital requirements set by the regulator  according to the upcoming European MiCA regulatory framework.

STAR LEGAL CAN OFFER A BETTER, EASIER WAY TO START /Engaging the services of knowledgeable Star legal professionals can provide invaluable consultation and  assistance, thereby enabling efficient utilization of time, financial resources, and energy, while  concurrently mitigating the potential risks associated with errors and oversights. /

If you are considering obtaining a crypto license in Lithuania, it is important to work with  experienced professionals who can guide you through the process and ensure that you  comply with all the regulations. Star Legal will obtain a crypto license for your business to  successfully operate in the crypto industry in Lithuania and worldwide.

That is why we are here. Star Legal.

Benefits of partnering with Star Legal:

At Star Legal, our expertise in licensing crypto companies ensures a prompt and hassle-free  process. At Star Legal, we offer a complete package of services that will help you set up a  cryptocurrency business in Lithuania successfully. We offer necessary banking and AML  solutions integration, essential for your crypto business, recruit qualified employees, and  implement accounting solutions. The entire process of registering a new company with  authorization for crypto business takes approximately 4 to 5 weeks, while bank account  opening may take up to 6 weeks, and recruitment can take up to 8 weeks.

At Star Legal, we provide our expertise to help you navigate the process of obtaining a crypto  license and setting up your business in Lithuania.

Why companies should consider seeking legal advice?

Companies should consider seeking legal advice and conducting thorough due diligence  before entering the cryptocurrency market to ensure compliance with all regulations and  minimize risks for several reasons:


Cryptocurrency regulations are complex and vary by country

Cryptocurrency regulations are still evolving, and each country has its own set of laws and  regulations that can be difficult to navigate. This makes it challenging for companies to  understand what they need to do to comply with all applicable regulations.


Non-compliance can result in legal and financial penalties

Failure to comply with cryptocurrency regulations can result in legal and financial  penalties. This can include fines, license revocation, and even criminal charges in some  cases.


Reputation risk

Companies that do not take the necessary steps to comply with cryptocurrency  regulations may face reputation risk. This can result in negative media attention, loss of  customer trust, and damage to the company’s brand.


Cybersecurity risks

The cryptocurrency market is highly susceptible to cyber threats and hacking. Companies  that do not properly secure their cryptocurrency assets and comply with cybersecurity  regulations may be vulnerable to cyber attacks.


Lack of industry standards

The lack of industry standards in the cryptocurrency market can make it difficult for  companies to know what best practices to follow. Seeking legal advice and conducting  thorough due diligence can help companies understand the current state of the industry  and identify best practices.

Final point

Obtaining a crypto license in Lithuania is a significant undertaking that requires extensive  knowledge, expertise, and experience. Overall, seeking legal advice and conducting thorough  due diligence can help companies understand the regulatory landscape, minimize risks, and  ensure compliance with all applicable regulations.

Working with experienced professionals like Star Legal can provide many benefits and help  ensure that your company is well-positioned for success in the dynamic and rapidly evolving  crypto market. This can help protect the company’s reputation, finances, and cybersecurity  while positioning them for success in the cryptocurrency market.

Contact us any moment to learn more about our services and start the collaboration.

We are ready to collaborate in bringing comprehensive legal solutions to you and your clients.