Lithuania cryptocurrency regulation

The importance of Lithuania cryptocurrency regulation

With the increasing capitalization of the cryptocurrency market, regulators are drawing more and more attention. Governments, central banks and other authorities are putting in place an increasing number of laws and regulations relating to digital assets. This has a direct impact on the market situation and the prospects for mass adoption of cryptocurrencies.

Feature of lithuania cryptocurrency regulation

The introduction of the definition of virtual money and virtual service providers in the legislation of Latvia demonstrates the desire to create in Latvia a favorable environment for the development of FinTech enterprises, while not exposing the financial system to the risks of legalization of funds, criminally induced. Innovations about virtual Lithuania cryptocurrency regulation undoubtedly improve the ranking of business competitiveness of country, especially in the field of innovative services.

What is lithuania cryptocurrency regulation

Lithuania cryptocurrency regulation is a digital reflection of value that functions in a digital environment and can be sent, stored or traded digitally and function as a means of exchange, but not recognized as a legal tender, is not considered banknote and coin, cashless money and electronic money, nor is the monetary value accumulated in the payment instrument.


The aspect of lithuania cryptocurrency regulation

Virtual currency provider is a person providing virtual currency services, including a person providing services for exchange of virtual currency issued by other persons, Providing users with the opportunity to exchange virtual currency for another virtual currency with a commission or offering to buy and buy digital currency using a recognized legal tender.


Principal duties of lithuania cryptocurrency regulation

Carry out and document the risk assessment of legalization in their activities. Establish a system of internal control to prevent legalization based on an assessment of the risk of legalization. Regularly review and update the risk assessment, assess and improve the performance of the internal control framework. Designate officials responsible for the prevention of workers’ legalization, providing them with the necessary knowledge to prevent legalization. To carry out regular activities to study the client, supervision of the client’s activities and transactions, to update information on the client’s business and personal activities. Comply with the ban on transactions with shell banks. Immediately report any unusual or suspicious transaction to the Service for the Prevention of Legalization of Criminal Funds (Control Service), provide information upon request of the Control Service. Refrain from engaging in suspicious transactions and immediately report such cases to the Control Service. Freezing of funds by order of the Control Service.