Press Release
Press Release With Lithuania’s tightening supervision of the cryptocurrency sector,{17 Gofizen & SherleIs. Lithuania, an international legal and management consulting firm based in Europe, is taking the initiative to help companies comply with these new regulations. According to Lithuanian regulators, these new laws are scheduled to take effect in November 2022. The country will also ban anonymous accounts and have stricter requirements for customer identification.
Gofazun & Shell, which has helped more than 500 companies in 30 countries, has physical stores in Estonia, Lithuania, and Germany.
New Lithuanian regulations
According to the Lithuanian Ministry of Finance, the national government has approved changes to the country’s anti-money laundering (AML) and counter-terrorist financing regulations affecting the cryptocurrency sector. The newly approved legislation will tighten user identification guidelines and ban anonymous accounts. The new regulations will also impose more stringent requirements on exchange operators. For example, crypto exchange operators will be required to register as legal entities with a minimum capital of EUR 125,000 starting January 1, 2023. In addition, its top management must also be a permanent resident of Lithuania.
According to Lithuanian Finance Minister Skyst, the country decided to update its regulations in response to recent events in the region, particularly the ongoing military conflict in Ukraine.
Lithuania has seen a rapid increase in the number of encryption companies starting operations since Estonia tightened its encryption regulations. However, while only eight such entities were established in 2020, 188 new companies were registered in 2021, with another 40 added in the first few months of this year. According to the Ministry of Finance, there are currently more than 400 crypto service providers operating in Lithuania.
Estonia’s crypto lockout
Estonia’s new regulation represents a sharp U-turn for a country with a population of only 1.3 million, yet last year there were more than half of the world’s registered virtual asset service providers (VASPs).
The new regulations, which took effect on June 15, require Estonian crypto companies to meet new transparency requirements. They can no longer have anonymous accounts and must have at least €100,000 to €250,000 in capital.
Estonia is a pioneer in the regulation of cryptocurrency-related services. However, until recently, the regulatory framework was very loose and barriers to entry were low. This changed when existing legislation was amended to better define and regulate the cryptocurrency industry. This means that the requirements for providing cryptocurrency-based exchange, transaction, transfer, and wallet services will be similar to those of European e-money institutions and other authorized financial service providers.
The number of new licenses then drops from 1305 in 2019 to just 81 in 2021. This represents a significant downtrend due to new regulations.
Lithuania will not be like Estonia
Many cryptocurrency enthusiasts fear that if the new regulations are approved, the once global crypto hub will become another Estonia. Gofazen& Meanwhile, attorney Sherle received instructions from the FCIS in October to devise a strategy to help businesses succeed regardless, providing businesses with a legal and convenient way to navigate the turbulence.
About Gofizen & Sherle
Gofizen {105} Sherle is a legal&business for digital asset-oriented businesses, investment funds and financial organizations It is a leading consulting firm and has a global presence with a focus on the EU market. Headquartered in Tallinn, the company has representative offices in Lithuania, the Czech Republic, and Poland. Services offered include company registration, business strategy development, crypto business, EMI, and financial licensing, including other licenses.
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