Lithuania Remains the Go-To Country in EU for Crypto Activities

Lithuania has established itself as a leading FinTech hub in the European Union and continues to attract businesses from across the world looking to operate in a crypto-friendly environment. Lithuania is one of the few countries having virtual asset service provider (VASP) authorisation, which will be a mandatory requirement for all VASPs established in the EU once the Regulation on Markets in Crypto-Assets (MiCA) comes into force. Therefore, the country’s transparent and cost-effective VASP authorization process has only added to its reputation as a hub for crypto activities.

At the start of 2023, there were over 840 authorized VASPs in Lithuania. However, this number has since dropped significantly as the government introduced new regulations requiring companies to have a minimum share capital of EUR 125,000, up from the previous requirement of EUR 2,500. This move has weeded out companies that were not serious about their operations, ensuring that only well-funded businesses continue to provide crypto-related services in the country.

Currently, there are more than 220 authorised VASPs in Lithuania. The VASPs’ lists are readily available and include key information such as company names, registered codes, addresses, email addresses, websites, and dates of operations:

Lithuania’s status as a leading hub for crypto activities has not gone unnoticed by businesses looking to enter the market. A company with a cryptocurrency authorisation in Lithuania is a great solution for modern startups that want to benefit from convenient tax solutions, friendly administration and electronic public services.

ECOVIS ProventusLaw, one of the most experienced VASP authorization advisors in the country, has helped authorize over 25 companies, including one of the largest crypto exchanges in the world. The firm assists clients throughout the whole process of VASP authorisation – from company incorporation to registration of VASP activities with the local regulator. During the VASP authorisation journey, ECOVIS ProventusLaw provides a comprehensive range of services, including preparation of AML/CTF documentation, assistance with employment and data protection requirements, risk management frameworks, and ongoing compliance support for established businesses.

If you are an individual or a company looking to start a cryptocurrency-related project, you can easily register it in Lithuania. The country has low taxation (income tax is 15% in Lithuania, small firms with up to 10 employees and gross annual income of up to € 300,000 may be taxed at a reduced rate of 0-5), good corporate law, and a friendly government that is supportive of blockchain technology. All of this makes it the perfect place to keep your cryptocurrency investment.

Prepared by Vilius Neverdauskas, associate of ECOVIS ProventusLaw