More and more entrepreneurs are starting to think about opening a cryptocurrency business. It is mainly because the interest in this industry is growing tremendously, and most civilized countries have already managed to develop systems to regulate this. AN crypto exchange license in lithuania is a good option for those who want to work in the EU within the law. Obtaining this work permit has several benefits, but the most important is the increase in customer confidence.
How does Lithuania feel about the crypto industry?
The modern world is divided into 3 large parts:
1. Those who support the development of the crypto industry;
2. Those who are categorically against;
3. And those who still do not fully understand the meaning of this phenomenon in the world community.
Lithuania certainly belongs to the first category. He was one of the first to develop a system to regulate (not just ban) the cryptocurrency business. Of course, there is still work to be done here because not all aspects of the activity of this industry have been touched on, but all decisions are made in a logical and consistent manner. It allows the legislative framework in this area to develop harmoniously.
Another point worth discussing is the attitude towards small and medium enterprises. The country’s government is trying to do everything to make it work stably and develop. The standard tax rate for cryptocurrency businesses is 15% (currency exchange is not subject to VAT), and small organizations employing no more than 10 people must pay a tax ranging from 0-5%. of profits. It makes a world of difference and a great gift for people just starting their business journey.
How can you legally operate a cryptocurrency business?
To work with peace of mind and not have problems with the law, it is necessary to obtain a crypto exchange license in lithuania.
Some of the most important benefits of obtaining a work permit include:
- Opportunity to work without fear of problems with the law;
- Ability to solve problems in the legal field;
- Increase the level of trust on the part of customers;
- An increase in the number of customers;
- Opportunity to cooperate with national banks and much more.
Some exchange house owners want to stay in the shadows, avoiding taxes and government regulations. This leads to the fact that many ordinary people associate the cryptocurrency business with fraud and the criminal world.
The thing is that there are exchanges that want to offer their users to act anonymously. It is worth noting that such a feature is of interest to criminal elements and various other users who do not wish to have their transactions tracked. Otherwise, they could use the services of an ordinary bank.
One of the requirements for crypto exchanges put forward by the regulatory authority is verification of customer data and the ability to provide information about user transactions. According to the authorities, this allows you to catch crypto criminals (which certainly exist) quickly. But this principle of operation turns contrary to the main idea of creating cryptocurrencies.
After obtaining a license, each company must periodically submit a report on its activities. If you do it at the wrong time and make mistakes, your license may be revoked by the system.
Additionally, FCIS may do this if it notices your association with criminal elements or fraudulent activity. If a disgruntled customer contacts regulatory authorities and provides evidence of his illegal activities, he can lose his license immediately. It is one of the reasons why all disputes must be resolved in favor of the client; otherwise, you stand to lose much more. Even the smallest scandal can cause other customers to lose confidence in you. Like any other type of activity, the cryptocurrency business largely depends on public opinion and the reputation of the company.
How to get a work permit?
Getting a crypto license has never been easier than it is today. You need to register a company, collect various documents and apply to the regulatory authorities.
Your company must meet the following requirements:
- Employed by at least 2 people;
- There is one person on staff with security system experience who will create reports for regulators;
- The website must be registered in Lithuania;
- Have a bank account.
But the most important criterion for obtaining a crypto exchange license in lithuania it is the reputation of the founder and all members of the company. Regulatory authorities are requested to provide resumes for all employees and certificates of non-conviction. If a person in her state has been previously convicted of tax fraud or evasion, he will not receive a work permit.
As you can see, if you plan to work honestly and openly, these requirements may not scare you. It is a rule of law where a person’s desire to develop in professional activities is respected (if this is not related to a violation of the law).