Lithuania Crypto License – Full Information
Lithuania, as a jurisdiction, is believed to be one of the most proactive, forward-thinking, and lax in regard to digital assets and blockchain technology. The benefits of obtaining a crypto license Lithuania are plentiful – hundreds of crypto-related businesses carry out their activities in the country, with that number rising rapidly. The beneficial factors of getting one include the ability to work in the thriving digital economy, the fact that the Lithuanian legal framework is more likely to support and grow businesses in the crypto space, and of course the fact that a crypto legal entity in Lithuania involves extremely low set-up costs and not much risk. Taxation shouldn’t be an issue to be worried about either since most digital businesses can enjoy a very pleasant tax regime. On top of all of these positives, the decision to open a crypto exchange or crypto wallet/custodian service in Lithuania is easy to make and it can be explained in very few sentences to future investors.
How Long Will It Take to Register a Crypto Project in Lithuania?
As most thriving projects can attest, setting up a new cryptocurrency business in this Baltic country does not take very long. The Estonian Financial Intelligence Unit usually has an estimated time of one week to process the documents related to a crypto legal entity. The final decision is reached within sixty working days. In some cases, this can extend up to twelve hundred working days. The latter applies to cases in which the file and document quality is not considered satisfactory, which is very rare. The quick processing of documents and the relatively low fees charged by the governing authority are probably the primary reasons why Lithuania is considered to be the most attractive jurisdiction in its region. It should also be noted that the crypto license is issued for a limitless period of time.
Why Is It So Easy to Get a Crypto License in Lithuania?
The ease of getting a crypto license in Lithuania is certainly not a mystery to both its residents and foreigners… But why IS it so easy to obtain a crypto license in this country? To begin with, the Lithuanian government understood that it is in their best interest to facilitate the entry of crypto business to the country very early on. They saw the beneficial economic effects and kept adjusting the law in a manner that ensures greater business opportunities for their crypto-savvy residents and also attracts international “newcomers” and investors. One more reason why it’s so easy to obtain a license in Lithuania is that there is a massive industry being built around it. All in all, getting a crypto license in Lithuania is very easy for business owners and the key reasons behind the easiness are not as important as the key benefits of doing business in the country.
Why Do People Choose Lithuania to Obtain Crypto License?
Why would business owners choose Lithuania over other jurisdictions? Simply put, there are a huge array of reasons for that. Lithuania, which is a country with a population of just over 2.7 million people, has been evolving very fast over the last few years – economically, culturally, and technologically. The country offers numerous benefits for crypto businesses, including but not limited to:
- Low Taxation. With a yearly corporate income tax rate of 0-5%, Lithuania is one of the countries in Europe that offers one of the lowest tax rates for any business if certain conditions are met.
- Reinvestment opportunities. Lithuania is a very competitive country in terms of attracting foreign investments. One of the benefits of setting up a business in Lithuania is that if the business succeeds, one can reinvest the profits in the business with a number of advantageous conditions attached.
- Highly flexible and responsive legal environment. The laws are very open and allow startups and established companies to thrive without undue interference from the government.
- EU market access. Lithuania is situated in the region of Europe which provides a wealth of opportunities for both crypto businesses and non-crypto projects. This helps to mitigate the risk of failure in even the most daring crypto ventures.
- Ease of doing business. The well-developed country offers a very pro-business atmosphere and various friendly policies and regulations. Also, there are many digitized services that allow everyone to work easily even remotely.
- Speed of launching a project. As mentioned before, it’s very fast to launch a business in Lithuania as the government has successfully simplified the process.
- Cost of launching and operating business. Operating costs are also fairly low, even when compared to similar jurisdictions within the same region.
This list of positives is obviously not exhaustive. It just provides a glimpse into the kind of lucrative opportunities that Lithuania provides for its crypto businesses.
