Interest in crypto assets is growing tremendously, so new crypto wallets and exchanges appear every day. Various states establish their own rules for regulating the crypto industry. It is believed that the most logical system is built in the USA, Latvia, Estonia, and some other regions. If you want to operate legally in the European market, you need to obtain a crypto license in Lithuania. After reading reviews on the Internet, many believe that this is incredibly easy to do and it takes only a few minutes. However, in practice, it turns out that everything is quite different. Let’s find out what steps you should go through and how long it can take.
Step 1. Company formation
It does not matter if you have just created a company or have been operating for a long time but in another country. You need to apply to the relevant authorities for state registrations.
The organization has to comply with specific rules:
- The authorized capital of at least 2500 Euros;
- Must have a bank account;
- Must have at least 2 people working.
Usually, to conduct crypto activities, a closed joint-stock company is opened.
You can apply for state registration either directly during your trip to Vilnius or remotely. Usually, all documents can be processed within one day, but the public service processes your request within a week (5 working days). But usually, this process takes much less.
Step 2. Collection of necessary documents
Next, you need to prepare the company for the form suitable for applying for a permit. If you want to obtain a crypto license in Lithuania as soon as possible, it is better to seek help from a specialized agency. The specialist will indicate what documents need to be prepared and what criteria must be met. Usually, the organization’s preparation and documents take about 7 days if everything is done together with a professional.
The list of required documents includes:
- A certified photocopy of the passport of all team members;
- Statutory documents of the organization;
- Data about the client base and much more.
You should pay attention to an essential point: a security specialist should work in the company. This person must have specialized education or work experience in this field. His responsibilities will include the preparation of reports for FCIS (if the company receives a license) and possibly other communications. The specialist must have a good reputation; otherwise, problems may arise.
Step 3. Submission of documents
As soon as you understand that the company is ready to apply, you should contact FCIS. It is a unique state body that is responsible for the control of financial institutions. After submitting papers, FCIS has 20 days to decide.
If the government agency finds errors in the documents, it can tell you how to do it right and send your company for revision. In this case, the term for obtaining a license will depend on how quickly you can fix the errors and how many there will be. That is why it is always better to seek help from professionals who know how the system works.
It is worth noting that the company owner personally or his authorized representative can submit documents for obtaining a permit (in this case, you need to issue a power of attorney). It is an excellent solution if you own a foreign company.
Why might you be denied?
Practice shows that Lithuania is the easiest and fastest area to obtain a license. However, there are several reasons why you might be rejected.
The first and most important reason is the presence of previous convictions or a bad reputation. FCIS is designed to prevent fraud. Accordingly, those who have had a criminal record in the past or have been involved in various unreliable financial schemes are denied here. That is why you need to be very careful in choosing your employees. Particular attention should be paid to the security specialist. They must have an utterly impeccable reputation.
Another reason for refusal is the wrong type of permit. There are only 2 of them (for wallets or exchanges), it is pretty challenging to make a mistake here, but there are people who can do it.
Another reason for refusal is the company’s non-compliance with the requirements. It will be good to consult with a specialist in advance to prevent this from happening. It will allow you to do everything right and more quickly immediately.
As you can see, failure can be avoided if everything is done consistently and per the requirements. If you doubt your abilities, it is better to seek help from professionals.
So, if you can create a company that meets all the requirements and prepares the necessary papers the first time, then obtaining a permit takes an average of 1 month. To resolve all issues in such a short time, it makes sense to seek help from specialists. Otherwise, obtaining a license may take several months, if not more.