Lithuania is a country of choice for those who want to create and innovate in the cryptocurrency space due to its efforts to form regulations working with the crypto community to boost its development. Although the EU sets regulations expected to get more stringent, Lithuania seems to try to facilitate how they affect an initial coin offering (ICO) and cryptocurrency exchanges.
Crypto trading in Lithuania
Lithuania’s public sector accepts blockchain technologies and cryptocoins. Following that, the Bank of Lithuania has launched a regulatory sandbox service, called LBChain, to establish a domain for researchers estimating regulatory approaches to promote economic growth. However, simultaneously the Bank has also blasted cryptocurrencies, noting that coins entail higher risks, and dealing with them may lead to substantial losses of funds.
The last time, the European Union came out with new regulations on cryptocoins, filling gaps that still exist in the oversight of the many financial means used by terroristic organizations. These laws are drawn with the purpose to address those gaps while bypassing odd barriers to the functioning of financial markets for both individuals and legal entities, therefore balancing the necessity for better security in terms of fundamental rights.
Regulation of ICOs in Lithuania
Initial coin offerings (ICO) previously were covered in a sandbox environment with lenient requirements, but the central bank’s statements also referred to ICOs, and subject to the new EU norms a stricter regulative environment seems to be implemented. Generally, the Lithuanian government proposed that within the regulative framework, ICOs will be approached separately. For instance, when cryptocoins have characteristics of securities, they should be included in the remit of the Law on Securities. Subject to the nature of an offering, legal acts regarding crowdfunding, mutual investment, and delivery of investment services would similarly be applied.
ICO support services
A well-established ICO is not when the first stage of fundraising has been passed. Following the ICO, the e-wallets of the founders of the company collect assets that should then be applied in the execution of the project. It is highly important to deem ICO not as an e-platform that allows fostering investments, but as a legal entity. For the thriving operation of a legal entity in any country, a reputable partner in the form of a bank and ongoing legal support is needed.
Although the market for services in the ICO domain is now still developing, ELI Lithuania offers experience in this field and is ready to provide professional support to clients setting up ICOs. The package of services includes the following:
- Development of a corporate scheme, choosing the best jurisdiction for ICO;
- Acquisition of a license that allows the realization of tokens;
- Arrangement of documentation for the legal operation of ICO;
- Legal advisory service;
- Comprehensive support in opening accounts in banks;
- Accountancy service;
- Arrangement and critical analysis of White Paper;
- Marketing ICO projects that satisfy international criteria.