Lithuania has emerged as one of the most crypto-friendly jurisdictions in the European Union, offering a clear and accessible regulatory framework for companies operating in the digital asset space. Since 2019, the Financial Crime Investigation Service (FCIS) has established comprehensive legal guidelines for virtual assets, initial coin offerings (ICOs), and crypto service providers. This progressive approach has made Lithuania a top destination for cryptocurrency exchanges, wallet services, and fintech innovators seeking EU-compliant operations.
With streamlined application processes, low entry barriers, and favorable tax policies, it's no surprise that major platforms like Binance have secured Lithuanian licenses to operate across Europe. In this guide, we’ll walk you through everything you need to know about Lithuania’s crypto licensing system — from license types and application requirements to taxation and common pitfalls.
Types of Crypto Licenses in Lithuania
The FCIS offers two primary licensing categories for crypto businesses:
Cryptocurrency Exchange License
This license permits companies to offer services involving:
- Converting fiat currency to cryptocurrency
- Converting cryptocurrency to fiat currency
- Exchanging one cryptocurrency for another
It is ideal for centralized and decentralized exchanges aiming to serve EU clients under a regulated umbrella.
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Crypto Wallet and Custodian Services License
This license applies to businesses that:
- Generate private keys on behalf of users
- Store or manage customers’ cryptographic keys
- Enable secure storage, transfer, and management of digital assets
This is essential for custodial wallet providers, custody solutions, and platforms offering secure key management.
Key Application Requirements
To obtain a Lithuanian crypto license, applicants must meet several regulatory and structural criteria:
- Establish a Lithuanian UAB (Limited Liability Company)
A UAB (Uždaroji akcinė bendrovė) is a private limited company structure widely used by foreign entrepreneurs. It requires at least one shareholder (individual or legal entity) and one director (must be an individual). The company must be officially registered in Lithuania. - Provide Criminal Record Clearance
All directors, shareholders, and key personnel must submit official police clearance certificates proving no prior criminal history. - Appoint a Qualified AML Officer
An Anti-Money Laundering (AML) compliance officer must be designated. While they do not need to reside in Lithuania, they must possess relevant experience and a clean professional reputation. - Implement KYC/AML Procedures
All users must undergo identity verification and background checks in accordance with EU AML directives. - Maintain Secure Customer Data Storage
User data must be stored securely and made available to regulators upon request. - Develop Internal Controls & Risk Assessments
Companies must establish formal risk management frameworks, including internal audit systems and cybersecurity protocols. - Submit Detailed Resumes of Key Personnel
Comprehensive CVs of all senior team members involved in operations must be provided during the application process. - Ensure Ongoing Regulatory Reporting
License holders must remain ready to report suspicious activities, financial statements, and operational updates to the FCIS. - Comply with AML/KYC Regulations
Full adherence to Lithuania’s anti-money laundering and counter-terrorism financing laws is mandatory.
Taxation Framework for Crypto Businesses
Lithuania offers one of the most competitive tax environments in the EU for blockchain enterprises.
Corporate Taxation
- Standard corporate income tax rate: 15%
- Micro-enterprises (fewer than 10 employees, annual revenue under €300,000) may qualify for a reduced rate between 0–5%
- Withholding tax (WHT): 15% applies only when distributing dividends
VAT Treatment
- Crypto exchange services are exempt from VAT
- General VAT rules apply to services paid for using cryptocurrency (valued in EUR at time of transaction)
This favorable tax regime significantly lowers operational costs, making Lithuania an attractive base for scalable crypto ventures.
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Why Choose Lithuania for Your Crypto License?
Fast & Cost-Effective Approval
Lithuania stands out for its efficient licensing timeline — approvals can be granted in as little as 30 days, much faster than other EU countries such as Germany or France. Additionally, setup and maintenance costs are among the lowest in the region.
No Residency Requirement
Foreign nationals can fully own and manage a Lithuanian crypto company without residing in the country. Directors and shareholders can operate remotely, simplifying international expansion.
Indefinite License Duration
Once granted, the license does not expire — it remains valid indefinitely as long as the company complies with ongoing regulatory obligations.
Low Minimum Capital Requirement
The minimum share capital is just €2,500, fully paid before application submission. However, note that:
- Payment must come from personal bank accounts
- Cryptocurrency cannot be used to fund the capital requirement
- Funds must be deposited into a Lithuanian bank or an e-money institution registered in Lithuania
Frequently Asked Questions (FAQ)
Q: Is the Lithuanian crypto license valid across the EU?
A: While Lithuania is an EU member state, its crypto license currently allows operation within Lithuania only. However, it provides a strong foundation for expanding into other European markets through additional registrations or passporting where applicable.
Q: Can I use my existing company to apply?
A: No. You must establish a new UAB registered in Lithuania specifically for your crypto activities.
Q: What happens if I change ownership after getting the license?
A: Any changes in ownership or key personnel must be reported immediately to the FCIS. Failure to do so may result in license suspension or revocation.
Q: Do I need physical office space in Lithuania?
A: While not strictly required to have operational offices, you must have a registered business address in Lithuania for official correspondence.
Q: Are there any restrictions on which cryptocurrencies I can support?
A: As long as the digital assets comply with EU sanctions and AML regulations, there are generally no restrictions on supported tokens or blockchains.
Q: How often do I need to file reports with the FCIS?
A: Regular reporting includes AML/CFT updates, suspicious activity reports (SARs), and annual financial statements. Frequency depends on risk classification and transaction volume.
Final Thoughts
Securing a Lithuanian crypto license offers a strategic advantage for startups and established platforms alike. With its transparent regulations, low barriers to entry, and supportive fintech ecosystem, Lithuania continues to attract global innovators looking to build compliant, scalable blockchain businesses in Europe.
Whether you're launching an exchange, custody solution, or payment platform, starting with a Lithuanian UAB and FCIS license can be your gateway to broader European market access.
👉 Start building your EU-compliant crypto business today — explore your next steps now.
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