How to prove a license for VASP, a crypto exchange in Lithuania

It used to be a great question mark and wonder, between dozen of Financial institutions -each of them, has had its own ways on how to approve that a registered company in Lithuania is fully complied and authorized to offer Virtual currency exchange and wallet depository service operations. Now finally on this day on the 1st of February, 2023, after some hours of delay, we have the public list of companies published on the website of the Registry of Legal entities in Lithuania - https://www.registrucentras.lt/jar/sarasai/vvko.php

While with great hopes that this will bring a welcomed clarity in the market, however, there have still been some concerns in the process. For instance, the list only includes all companies until 31.12.2022. that managed to declare their share capital has been paid up and thus increased. Some of those who have complied right after or declared that they complied within the deadline, but registered it after 31.12.2022. will have to re-apply. This opened up a question - is it all just about the EUR 125 000 registered capital? For a Financial institution - registered capital would mean restrictions and limitations, but for a VASP that is not treated as an FI, their capital requirements are not limited. Hence, the requirement for EUR 125 000 registered capital is mostly a formality for many. While handing in such applications who complied just after the deadline, there was no procedure to provide data about the local MLRO, or a draft of accepted written AML procedures, and that opens up a lot of flaws in the system.

If we hoped to gain trust and credibility, how long will it take for Banks and FI's to realize that the list is just a list with possibly an empty shell?

Shall we see what February will bring and how many more companies will be added to the list? The same old proof of license may still be applicable, thus for those who wonder there are 2 most popular ways how to prove the license yesterday, today, and tomorrow:

1. The legal opinion, whereas a local law office confirms the validity and terms of complied requirements;

2. Provide proof of appointment for MLRO and supply an active ESI/Registry extract with a recording for Virtual currency exchange operations.

At CAML we can help you to apply for authorization, consult on the in's and out's of the regulation and the requirements, intermediate in the Legal opinion process, outsource an individual AML specialist, draft the AML policy, and provide proof of appointment. For more inquiries do feel free to connect with our team.