New Working Conditions – How Can Crypto Companies Stay Compliant?
Working Conditions for Crypto
Modified Date:- Published Date:-Categories: Cryptocurrency
New Working Conditions – How Can Crypto Companies Stay Compliant?
The new guidelines set out earlier in this article for Lithuania-based companies may appear strict at first glance, yet there are ways they can be navigated that won’t cause major strife. Although rules like the increased share capital requirement cannot be avoided, some aspects of the updated regulation should be relatively simple to abide by:
- Ensure that all of the management team and owners do not have a criminal record
- Maintain one senior manager who permanently resides in Lithuania.
- Have at least €125,000 in share capital. Importantly, no specific ‘methods’ of share capital contribution are required, meaning that non-monetary contributions may be accepted (e.g. virtual currencies, intellectual rights).
- Ensure the company is providing some services within Lithuania and to Lithuanian customers.
Make sure the company is publicly registered so that specific information, such as the company’s office address and email address, is available in the State Enterprise Centre of Registers.
Is Lithuania Still the ‘Go-To’ for Crypto Companies?
In many ways, it can be. To expand on this further, detailed below are two key reasons why Lithuania is still an excellent option for those operating within the crypto market:
Interestingly, clients don’t have to be residents of Lithuania. As such, they can prove their identity simply by providing an identity document from a foreign country or even a driving license issued by a country within the European Economic Area (EEA).
No Need for Physical Documents
Moreover, the identification documents don't have to be physically presented – a scanned copy or a photo will suffice. This dramatically speeds up the onboarding process and prevents headaches for all parties, making Lithuania-based platforms more appealing than those in certain other countries.
Easy Client Identification
Onboarding is a crucial part of any cryptocurrency project – whether for the owner(s) or the clients themselves. When a client wishes to sign-up to buy, sell, or trade crypto, it's natural that they want the process to be as quick and streamlined as possible.
As these elements highlight, Lithuania remains the best option for those looking to get set up quickly and without any complex requirements. Over the long term, this is likely to play a massive role in the growth of Lithuania's crypto sector.
Final Thoughts
To conclude, this article has thoroughly explored Lithuania's new crypto regulation, covering how the rules are set to change and what this will mean for new and established firms. We've also compared Lithuania's situation to that of Estonia, highlighting the key differences between the two.
Overall, there's no doubt that Lithuania's new rules will somewhat stifle crypto firms' growth. However, digging into the details a little more, it becomes apparent that the new regulations aren't as severe as those in other countries. Due to this, there's a growing consensus that Lithuania's crypto sector could still prosper in the years ahead.
In 2019, Lithuania’s local companies are going through major changes. The new guidelines set out earlier in this article for Lithuania-based companies may appear strict at first glance, yet there are ways they can be navigated that won’t cause major strife.