Why Should Crypto Companies Operate Legally
Initially, the crypto world was created to avoid government regulation and simplify the process of performing various transactions. However, now it is very closely intertwined in our lives, so it is almost impossible to get rid of regulation. Lithuanian crypto licenses allow crypto companies to operate legally in the EU. It will enable you to avoid problems with regulators and significantly increase the level of trust among users.
A few reasons why you should get a crypto license
Developed countries can no longer deny the importance of the crypto industry in the modern world because it is used by many people all over the planet. As in any other industry, there are a lot of scammers who want to get money from unsuspecting users. That is why various government bodies seek to regulate multiple processes in the world of cryptocurrencies.
They can block the websites of various financial companies, interfere with their work, and even start criminal cases, accusing them of fraud or tax evasion. It can not only lead to huge losses but also permanently ruin the organization’s reputation.
Separately, it should be said that in many countries, the government is cautious to ensure that all companies and individuals pay taxes so that the state can develop better. If any financial institution tries to evade paying taxes, this inevitably leads to problems with the law.
So, if you want to work honestly and openly and avoid problems with regulatory bodies, it is worth getting a license. The principle is as simple as possible: you need to collect a small document package and apply it to the relevant authorities. They will assess the level of trust in your company within 2-3 weeks and make an appropriate decision. Everything is as simple as possible here, but it will solve many problems.
Another point that cannot be ignored is that many users are more willing to cooperate with Lithuanian crypto license companies. It signals that your exchange or wallet works legally, meaning they are not scammers. In addition, it becomes pretty clear that these are not scammers and can be trusted.
There is also an opinion that the level of service in licensed exchanges is much better. Various financial organizations are afraid of losing their license, so they try to solve possible problems in favor of the client. It is scarce to find cases where issues between the exchange and the client reach the court because the parties seek to resolve everything peacefully.
How difficult is it to get a license?
Each country develops its own rules for obtaining a license. Practice shows that the easiest way to do this is in:
- The Czech Republic and some others.
The rules for obtaining a work permit in each country may vary slightly. It is believed that the most straightforward rules work in Lithuania. There are 2 types of licenses here: for wallets and the exchange. Companies can issue both licenses at once if your field of activity requires it. Making a choice will not be difficult.
To obtain a license, you need to register a company with an authorized capital of more than 2500 Euros; at least 2 people must work here. You also need to create a bank account and write a well-thought-out business plan.
You need to prepare several documents, including certified photocopies of the passports of all members of the company and their resumes, business plans, and much more. Your organization should employ a security specialist who will monitor all transactions to prevent fraud. The duties of this person will also include communication with regulatory authorities and providing reports and other documents upon request. It is vital that this specialist has experience in their industry and has an excellent reputation.
It is imperative that no team member has a criminal record or has been involved in fraud. This dramatically reduces the level of trust.
You do not have to go to Vilnius to submit all the documents, even if you own a foreign company. Now, an agency can represent your interests in the regulatory authorities. Our specialists will check the correctness of filling in all copies and submitting them to FCIS. They are well aware of the principle of operation of this system, so they will be able to solve many issues much faster. The only point that needs to be taken into account is the need to draw up a power of attorney.
So, every crypto exchange or e-wallet must be licensed to operate without problems with the law and increase the level of trust among customers. In the EU, Lithuania offers the most straightforward and most understandable conditions for obtaining a license. There is no bureaucracy, complex requirements, or time limits. But, if the regulators suspect you of fraud, you may lose your work permit.