Cryptocurrency Exchange, Wallet, Blockchain Licencing
Companies entering the crypto-asset-related business field may face various challenges arising from the evolving regulatory landscape and the complexity of the crypto industry. It becomes even more important to comprehend crypto-asset licensing requirements within the operational jurisdiction and seek guidance from legal experts specialized in cryptocurrency regulations, especially with the upcoming full implementation of the new European Markets in Crypto Assets (MiCA) Regulation in 2024.
Glimstedt has an experienced team ready to advise clients on every aspect in the field of crypto assets.
Virtual Asset Service Provider (VASP) Authorization
Under the current legal framework, companies in Lithuania can apply for a VASP (Virtual Asset Service Provider) licence for the following activities:
- Cryptocurrency Exchange Operator’s activity, which allows the exchange of cryptocurrency for fiat currency and vice versa, and the exchange of one virtual asset for another.
- Cryptocurrency Depository Wallet Operator’s activity, which allows the custody and management of clients’ cryptocurrency depository wallets for virtual assets.
To be authorized as VASPs, companies must meet certain legal requirements. A company must comply with the minimum share capital requirement, its management bodies must be of impeccable reputation, its senior manager must be a permanent resident of Lithuania, and the employees holding managerial positions must act for one crypto company only. Furthermore, VASPs are required to operate in compliance with legal and regulatory requirements, including those related to money laundering and terrorist financing.
Glimstedt offers extensive legal services to help new VASPs get off to a smooth start in the Lithuanian market.
Companies established in Lithuania and holding VASP authorization may be granted a transitional period until July 1, 2026, to obtain an EU-level licence under MiCA. However, the Bank of Lithuania is still deliberating on whether to implement this transitional period for crypto companies authorised as VASPs in Lithuania. If the transitional period is not granted, crypto companies will be required to obtain a licence starting from December 2024.
Markets in Crypto-Assets (MiCA) licence
MiCA is aimed at introducing a harmonized framework for the crypto-asset market at the EU level.
Companies that offer one or more crypto-asset services to clients on a professional basis will be subject to a licensing procedure that will enable them to provide innovative crypto-asset-related financial products.
Companies licensed under the MiCA Regulation will be able to offer crypto-asset-related services across the EU with just one licence.
Services
- Legal assessment of the proposed crypto-asset-related activity,
- Assistance in the formation of CASPs,
- Incorporation of legal entities,
- Full scope assistance in the preparation of documents required for the licensing process with a competent institution in Lithuania,
- Legal support for token offerings (ICO/STO/IEO).
