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Crypto License in Latvia - How does it Work?
Lithuania welcomes crypto businesses with open arms, and the Financial Crime Investigation Service (FCIS) stands as its vigilant gatekeeper. Guided by its mission to protect the integrity of Lithuania's financial system, the FCIS carefully issues licenses to crypto service providers who meet strict standards for security, transparency, and compliance.
Bonus: all licensed companies are publicly listed for everyone to see!
Key requirements: €125k capital (€31,250 needed to start) , strong security & and compliance measures, and clean records for executives.
Easy entry, transparent operations - Lithuania's crypto hub awaits!
Activities allowed in Latvia with Crypto License
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Firms recognized as Virtual Asset Service Providers (VASPs) have the privilege to offer exchange services for various digital assets, encompassing utility tokens and coins. Yet, they're not granted the authority to enable trading of security tokens.
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Holding a cryptocurrency license in Lithuania equips one with the ability to facilitate the exchange of cryptocurrencies for traditional, fiat currencies, and vice versa. Thus, clients gain the power to buy or sell utility tokens using conventional currencies like the USD, Euro, and more.
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Holding a cryptocurrency license in Lithuania equips one with the ability to facilitate the exchange of cryptocurrencies for traditional, fiat currencies, and vice versa. Thus, clients gain the power to buy or sell utility tokens using conventional currencies like the USD, Euro, and more.
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With a VASP License in hand, the holder is authorized to store cryptocurrencies for clients using custodial wallets. In simpler terms, the operator can establish a wallet on behalf of a client, while the VASP retains control over the private keys.
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A Lithuanian-registered VASP possesses the capability to execute Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs), and Initial DEX Offerings (IDOs). These platforms serve as avenues for the VASP to debut its cryptocurrency. It's important to highlight, though, that these offerings are strictly limited to the launch of utility tokens.
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A VASP registered in Lithuania can carve out a platform for NFT trading or participate in the creation of NFTs, thereby shaping a marketplace for one-of-a-kind digital assets.
How to Obtaining a Crypto License in Latvia?
The process of acquiring a crypto license in Lithuania is methodical, offering a structured path to launch your crypto business. The key steps involved are:
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Company Registration and Initial Financial Setup:
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Open a share capital account with SEB Bank.
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Deposit an initial amount of €2,500.
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Complete Company Registration:
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Officially register your company in Lithuania as a UAB (limited liability company).
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Company Bank Account Opening:
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Open a company bank account.
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Deposit the remaining amount of €28,750, reaching a total of €31,250 in share capital.
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Share Capital Registration:
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Register the paid-up share capital as part of the company formation process.
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Preparation of AML and KYC Policies:
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Develop comprehensive Anti-Money Laundering (AML) and Know Your Customer (KYC) policies in line with regulatory requirements.
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AML Officer Recruitment:
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Hire a qualified AML officer who is based in Lithuania to ensure adherence to local regulations.
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Crypto License Registration:
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Submit the application for the crypto license, ensuring all compliance measures are met.
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Frequently Asked Questions
What types of crypto licenses are available in Latvia?
Latvia offers one primary crypto license, the Electronic Money Institution (EMI) license, with specific permissions based on your business activities:
- Fiat-to-Crypto and Crypto-to-Fiat Exchange: Allows operating a platform for trading cryptocurrencies with traditional currencies.
- Crypto Wallet Services: Enables offering custodial or non-custodial crypto wallets for storing digital assets.
- Payment Processing: Permits processing crypto payments for merchants.
Which regulatory body governs crypto activities in Latvia?
The Financial and Capital Market Commission (FKTK) oversees and regulates all financial activities, including crypto-related businesses.
What are the eligibility requirements for obtaining a crypto license (EMI license) in Latvia?
Eligibility criteria include:
- Legal entity registered in Latvia with a minimum share capital of €35,000.
- A strong business plan outlining your crypto operations.
- Experienced management team with relevant financial and technological expertise.
- Robust AML/KYC compliance procedures in place.
What is the application process for a crypto license (EMI license) in Latvia?
The FKTK website details the application process. It involves submitting a comprehensive application package, paying fees, and undergoing a thorough review process.
What are the ongoing regulatory requirements for maintaining a crypto license (EMI license)?
License holders must adhere to ongoing FKTK regulations, including:
- Regular reporting on financial activities and transactions.
- System audits and compliance checks.
- Maintaining strong AML/KYC programs to prevent financial crime.
How much does it cost to obtain a crypto license (EMI license) in Latvia?
License application fees and ongoing regulatory costs vary depending on your company structure and the complexity of your operations.
What are the benefits of acquiring a crypto license (EMI license) in Latvia?
Benefits include:
- Access to the European Economic Area (EEA) market.
- A relatively efficient and transparent regulatory environment compared to other EU countries.
- Competitive corporate tax rates.
The crypto market is still evolving, and regulations may change. You should also consider the costs and ongoing compliance requirements.
The crypto market is still evolving, and regulations may change. You should also consider the costs and ongoing compliance requirements.
Where can I find more information about acquiring a crypto license (EMI license) in Latvia?
The FKTK website is the primary source of information: https://www.bank.lv/en/about-us
Where can I find more information about acquiring a crypto license in Dubai?
The VARA website is the primary source of information: https://www.vara.ae/en/