"Now when the company is ready to operate, we go to the bank, or financial institution, or liquidity provider (e.g. Kraken), or AML & KYC provider, or with regular business partners and are asked for a proof of license, license number or the certificate". Whereas, whatever is the case, and they are quite unique every time - 1 out of 3 companies will definitely need additional proof of license, but the rest can probably live and sustain without it.
[UPDATED 01.02.2023] So how do you prove that the company has a license?
There are 5 ways, in our practice how it can be done. The three official ways are the public registry recordings. The first and simplest way that was introduced from the 1st of February, 2023, is via a public list - https://www.registrucentras.lt/jar/sarasai/vvko.php
Second, via public recording about registered documentation - https://www.registrucentras.lt/jar/p/dok.php?kod=%09305932118&dti=&p=1
Should you change the company code and "search", the company should have an original recording "Pranešimas juridinių asmenų registro tvarkytojui apie vykdomą virtualiųjų valiutų keityklos operatoriaus ar depozitinių virtualiųjų valiutų piniginių operatoriaus veiklą" that translates in "Notification to the Registrar of Legal Entities about the activities of a virtual currency exchange operator or a deposit virtual currency operator".
Thirdly, the registry card (via ESI code), that also refers directly, in paragraph 10, to both authorizations separately (10.1. Depozitinių virtualiųjų valiutų piniginių operatorius and 10.2. Virtualiųjų valiutų keityklos operatorius).
On some occasions, we are asked "if the Term from Lithuanian translation is a date of expiry?" It is not. That is the day when we registered the application for crypto exchange activity and authorization. All licenses, until today, are without an expiry date, termless.
The license application is submitted to the Bank of Lithuania who also performs the UBO review. However, as crypto exchanges are not considered fully pledged financial institutions they are not listed on the Bank of Lithuania website. After the registration is granted, the Financial Crime Investigation Service (FCIS) is responsible for monitoring the company activities and making requests in order to check that all AML/KYC policies are followed per requirements of the law. The FCIS does not publicly publish the list of its monitored entities or issue a PDF certification that is the case in Estonia. Nevertheless, the regulation is similar and through AML legislation, referring to https://www.e-tar.lt/portal/lt/legalActEditions/TAR.C44837068B55?faces-redirect=true
The registry is the entity that stores and publicly represent the information about the company, therefore, it is the entity to show if you are authorized in the virtual currency exchange and wallet custody operator activity.
The third way to prove the license. In accordance with the AML law, every crypto exchange in Lithuania must appoint an MLRO (money laundering reporting officer). This person can be a non-resident, but he has to have applicable experience, and he has to be appointed, by the means of email communication. This is notification based and should you present one such email sent directly to the Regulator, most financial institutions will recognize and accept it as additional proof. ALT accounting can further organize the instructions and guidelines with a text, content, email details, and attorney at law official legal letter to confirm this process.
The fourth. Should all the above be considered and you are still stuck, then you must consider having a Legal Opinion from an Attorney-at-law. Legal opinions can be different:
a plain reference for confirmation of activities - works well with, e.g. Kraken;
a reference for eligibility for crypto exchange and wallet custody activities with some guidelines regarding KYC and AML requirements. Works with Swiss and non-EU financial institutions;
fully described information about the company scope of activities, guidelines to the AML tasks, and current regulatory provisions, often used - requested with specific agenda for establishing relations with government institutions locally and abroad, any legal concerns, self-educational, provisional for future financial product use.
We are here to help thus you can easily navigate through the local infrastructure, should you have any feedback and need any assistance, do not hesitate to inquire accounting@alt-accounting.com
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