Service packages for CASP in Lithuania

Legal Frameworks Setup

30 000 EUR

• Reviewal of the business model and adjust the business plan

• Compliance management framework development

• Internal governance and control framework

• Risk management framework development

• Business continuity management framework development

• ICT and security framework development

• Financial reporting framework development

• Travel Rules implementation into legal frameworks

• Customer relations framework development

• Development of a training program

• Supervision over implementation policies

Which companies need a Lithuanian CASP licence

CASP license in Lithuania must be obtained by all crypto market entities involved in the following activities (according to Art.3 of MICA):

• Provide storage services, including custodial wallets with encrypted keys.

• Operate cryptocurrency trading platforms where crypto assets are bought/sold.

• Offer services for exchanging virtual currencies for traditional currencies or other digital assets.

• Provide marketing services for crypto assets.

• Advise on the functioning of the crypto environment.

• Accept and transmit transaction orders on behalf of customers.

• Execute clients’ orders for transactions involving crypto contracts.

• Manage a portfolio of crypto assets by client instructions.

• Execute transactions of clients between their accounts, and wallets as instructed.

The new Regulation requires custodians to secure client crypto assets using private cryptographic keys.

Exchanges must describe how the system will work in the event of a crisis, as well as guarantee the segregation of customer assets from the company’s operating capital.

Token issuers must disclose all information, and technical documentation about the token, the purpose of its issuance, and its market offering. Issuers of asset-linked tokens will be subject to special scrutiny by regulatory authorities. Persons offering tokens on behalf of the issuer are subject to the same requirements as the issuer.

MiCA rules (Art.8) affect the interests of offerors and persons who seek to obtain the right of entry for trading and trading platforms. The new rules require them to provide all technical documentation to regulators.

The rights of retail holders of digital assets are also protected by the new Regulation. Article 13 outlines the process of payment of fees, and commissions when a client cancels a transaction. In addition, institutional investors must now receive full information about the asset being purchased (its characteristics, functions, and potential risks).

Peculiarities of obtaining a CASP license in Lithuania

The process for obtaining a CASP license in Lithuania comprises two key stages. Initially, the Bank of Lithuania evaluates whether the application is complete, providing feedback within 25 days. During this stage, BOL can request additional information or clarification, which may extend the review period by another 25 working days per request, with no limit on the number of extensions. The second stage involves the evaluation of the application and the issuance of a final decision within 40 days. The national supervisory authority can request further clarification, potentially leading to a single 20-day extension.

Lithuanian law mandates CASP-licensed entities to employ at least three local professionals: a Chief Compliance Officer (CCO), a Chief Executive Officer (CEO), and a Money Laundering Reporting Officer (MLRO). Smaller entities may consolidate the MLRO and CCO roles, though it is advisable for larger companies to maintain separate positions and also appoint a local Chief Technical Officer (CTO) and Chief Operating Officer (COO) to enhance their operational robustness in the eyes of financial institutions, thereby improving their chances of license approval.

Lithuania’s appeal extends beyond regulatory efficiency to its competitive taxation regime. With a corporate tax rate of 15% and a dividend tax of 15%, the country provides a favorable fiscal environment for businesses.

Transfer of Funds (TFR) Regulation in Lithuania

Lithuania, as part of the EU, adheres to the Transfer of Funds Regulation (TFR), which obliges cryptocurrency companies to comply with fund transfer requirements, including for transactions involving crypto assets. Lithuania also follows the FATF’s anti-money laundering recommendations. Anyone who obtains a CASP license in Lithuania will be required to:

• Collect and transmit sender and recipient information, including names, account numbers, and personal identifiers, for all transfers. This also applies to cryptocurrency ATM transactions.

• Collect all necessary information and verify ownership of the non-custodial wallet for transfers over €1,000.

• Follow AML/CTF procedures, and take enhanced EDD verification measures when interacting with third-country counterparties.

• Report suspicious activities, and customer transactions to the Financial Intelligence Unit (FIUs).