Lithuania has emerged as one of the most crypto-friendly jurisdictions in the European Union, offering a clear and accessible regulatory framework for cryptocurrency businesses. As one of the few EU countries that legally recognize and regulate crypto-related financial services, Lithuania provides a stable and transparent environment for companies seeking to operate compliantly across Europe.
Backed by progressive regulations introduced between 2019 and 2020 by the Financial Crime Investigation Service (FCIS), Lithuania enables firms to obtain licenses for virtual asset services, including crypto exchanges and custodial wallet operations. This favorable legal landscape — combined with low setup costs, no residency requirements for directors or shareholders, and fast processing times — has made Lithuania a top choice for global crypto entrepreneurs.
Whether you're launching a digital asset exchange or a custody solution, understanding the licensing process, compliance obligations, and tax implications is essential. Below, we break down everything you need to know about obtaining a Lithuanian cryptocurrency license.
Types of Lithuanian Crypto Licenses
The FCIS regulates two primary types of crypto licenses:
1. Virtual Currency Exchange Operator License
This license permits businesses to offer services involving:
- Converting fiat currency into cryptocurrencies
- Converting cryptocurrencies into fiat currency
- Exchanging one cryptocurrency for another
It is ideal for cryptocurrency exchanges aiming to serve EU customers under a recognized regulatory umbrella.
2. Deposit Virtual Currency Wallet Operator License
This license covers services where the provider:
- Generates private keys on behalf of clients
- Stores users’ cryptographic keys
- Facilitates secure storage and transfer of digital assets
This is suitable for custodial wallet providers, payment processors, and platforms offering secure asset management.
👉 Discover how to launch your compliant crypto business in the EU today.
Key Requirements for Obtaining a Lithuanian Crypto License
To apply for either license, your company must meet strict regulatory standards set by the FCIS. Here are the core requirements:
✅ 1. Establish a Local Company (UAB)
All applicants must register a UAB (Uždaroji akcinė bendrovė) — a private limited liability company in Lithuania. The UAB structure allows full or partial share ownership and requires:
- At least one shareholder (individual or legal entity)
- At least one director (must be a natural person)
There are no residency requirements — non-EU citizens can fully own and manage the company remotely.
✅ 2. Minimum Capital Requirement
- Exchange license: €25,000 minimum share capital (fully paid before application)
- Wallet/custody license: €12,500 minimum share capital (fully paid)
Capital must be deposited into a Lithuanian bank account or an e-money institution registered in Lithuania. Cryptocurrency cannot be used for capital contribution.
✅ 3. Compliance Team & AML Officer
You must appoint a qualified Anti-Money Laundering (AML) Officer who:
- Has relevant professional experience
- Is free from reputational risks
- Does not need to reside in Lithuania
Additionally, all senior management and key participants must submit detailed CVs and proof of good standing.
✅ 4. Robust Compliance Framework
Your business must implement:
- KYC/AML procedures for all customers
- Ongoing customer due diligence and transaction monitoring
- Internal risk assessment and control systems
- Secure data storage (customer records must be retained for audit purposes)
You must also be prepared to report suspicious activities to the FCIS at any time.
✅ 5. Documentation & Due Diligence
Required documents include:
- Certified copies of passports (apostilled via Hague Convention or embassy)
- Proof of residential address (utility bill or bank statement)
- Power of Attorney (POA) for incorporation (if applicable)
- Business plan outlining operations, security measures, and target markets
- Video-based KYC verification (conducted through approved platforms)
Taxation for Crypto Businesses in Lithuania
Lithuania offers competitive tax conditions for crypto firms:
📊 Corporate Income Tax
- Standard rate: 15% on net profits
- Micro-enterprises (fewer than 10 employees, <€300k annual revenue): eligible for reduced rates of 0–5%
💸 Withholding Tax (WHT)
- Dividends distributed to shareholders are taxed at 15%
🧾 VAT Treatment
- Crypto exchange services are VAT-exempt
- Other services paid in crypto follow standard VAT rules based on euro valuation
All transactions must be recorded in euros for tax reporting purposes.
Advantages of a Lithuanian Crypto License
Why choose Lithuania over other EU jurisdictions? Key benefits include:
✅ Fast Approval Process: New applications typically take 3–4 months, while license acquisitions can be completed in just one month
✅ No Expiry: Licenses are valid indefinitely, provided ongoing compliance is maintained
✅ Low Operational Costs: Significantly cheaper than licensing in Germany, France, or Malta
✅ EU Market Access: Operate legally across the European Economic Area
✅ Remote-Friendly Setup: No requirement for directors or owners to live in Lithuania
👉 Learn how to fast-track your entry into Europe’s regulated crypto market.
Frequently Asked Questions (FAQ)
Q: Why should I get a crypto license in Lithuania?
A: Lithuania offers one of the fastest, most affordable, and transparent licensing processes in the EU. With minimal bureaucracy and remote-friendly setup, it's ideal for startups and scaling projects targeting European markets.
Q: How long is the Lithuanian crypto license valid?
A: The license is indefinitely valid as long as the company remains compliant with FCIS regulations and submits required reports.
Q: Can non-residents own and manage a Lithuanian crypto company?
A: Yes. Foreign nationals can fully own a UAB and serve as directors without needing residency, visas, or physical presence in Lithuania.
Q: What are common reasons for license rejection or revocation?
A: Common issues include failure to notify regulators about ownership changes, inadequate AML officer qualifications, or breaches of KYC/AML protocols. Maintaining transparency is crucial.
Q: What is the minimum authorized capital for a crypto service provider?
A: For exchange operators: €25,000; for wallet/custody providers: €12,500. Full payment is required before submitting the application.
Q: Can I acquire an existing licensed company instead of applying from scratch?
A: Yes. Many pre-approved companies with active licenses are available for acquisition, reducing time-to-market from months to weeks.
Final Thoughts: Is Lithuania Right for Your Crypto Business?
For crypto entrepreneurs seeking EU compliance without excessive cost or complexity, Lithuania stands out as a strategic gateway. With clear licensing categories, favorable tax treatment, and strong regulatory support, it offers a rare combination of accessibility and legitimacy.
Whether you opt for a new application or acquire an existing licensed entity, establishing your presence in Lithuania can significantly accelerate your expansion into Europe’s growing digital asset economy.
👉 Start building your regulated crypto future in Europe now.
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