Lithuania has rapidly emerged as one of the most crypto-friendly jurisdictions in the European Union. With a forward-thinking regulatory framework, low operational costs, and full remote setup capabilities, it’s no surprise that entrepreneurs and fintech startups are turning to Lithuania to launch their cryptocurrency exchanges, wallet services, and blockchain ventures.
This comprehensive guide explores the key benefits, licensing types, legal structure, tax environment, and application process for obtaining a Lithuanian crypto license—all while maintaining compliance with EU anti-money laundering (AML) standards.
Why Choose Lithuania for Your Crypto Business?
Compared to other EU countries like Estonia, Lithuania offers a more flexible and cost-effective regulatory environment. There are no mandatory local director or employee requirements, no forced in-person interviews, and the entire company formation and licensing process can be completed 100% remotely.
Whether you're launching a crypto exchange or offering digital asset custody solutions, Lithuania provides a streamlined path to EU market access—with minimal bureaucracy and some of the lowest corporate taxes in Europe.
👉 Discover how easy it is to start your crypto venture in Lithuania with expert guidance.
Key Benefits of a Lithuanian Crypto License
✅ Low Setup and Operational Costs
There are no hidden fees or excessive capital requirements. The only costs include:
- Company registration fee
- Minimum share capital (€2,500)
- Document preparation and legal support
✅ No Physical Presence Required
You don’t need to live in Lithuania or hire local staff. All procedures—including KYC verification and AML compliance—can be managed remotely.
✅ Minimal Capital Requirements
Unlike many EU jurisdictions, Lithuania does not impose additional capital requirements for licensing purposes beyond the standard €2,500 minimum share capital for a UAB (limited liability company).
✅ Competitive Tax Rates
Lithuania offers one of the most favorable tax environments in the EU:
- 15% corporate income tax (among the lowest in Europe)
- 0–5% reduced rate for micro-companies with fewer than 10 employees and annual revenue under €300,000
- 15% withholding tax (WHT) on distributed dividends
✅ Flexible Ownership Structure
- No residency requirements for directors or shareholders
- Both individuals and legal entities can own a UAB
- Non-EU citizens are welcome to register and operate
✅ Fast Processing Time
From application submission to license approval, the process typically takes just 3–4 weeks, depending on documentation readiness.
Types of Crypto Licenses in Lithuania
The Financial Crime Investigation Service (FCIS) is the primary regulator overseeing cryptocurrency operations in Lithuania. Two main licenses are available:
🔁 Cryptocurrency Exchange License
Allows businesses to:
- Convert fiat currency to cryptocurrencies (and vice versa)
- Exchange one digital asset for another
- Earn commissions on transaction volumes
This license is ideal for platforms offering trading pairs, OTC desks, or peer-to-peer exchange services.
🔐 Crypto Wallet & Custody Services License
Enables companies to:
- Manage customer wallets
- Store private keys securely
- Offer custodial solutions for institutional investors
Holding both licenses is permitted and common among full-service crypto platforms.
Both licenses require strict adherence to AML/KYC protocols and ongoing reporting to the FCIS.
Legal Structure: Setting Up a UAB in Lithuania
To apply for a crypto license, you must establish a UAB (Uždaroji Akcinė Bendrovė)—a limited liability company. This is the most popular business entity type in Lithuania due to its flexibility and legal clarity.
Required Components:
- Minimum share capital: €2,500 (fully paid up)
- At least one shareholder (individual or corporate)
- At least one director (can also be the shareholder)
- A designated AML compliance officer (can be the same person as the director)
- A registered office address in Lithuania
- Remote registration allowed via power of attorney
Compliance Obligations:
- Conduct KYC/AML checks on all clients
- Maintain detailed transaction records
- Implement internal risk assessment systems
- Report suspicious activities to FCIS
- Notify authorities of any structural changes (e.g., ownership, address, directors)
All crypto companies must comply with Lithuania’s Law on Prevention of Money Laundering and Terrorist Financing, particularly Order No. V-5 issued in January 2020.
Taxation for Crypto Companies in Lithuania
Understanding the tax implications is crucial for long-term planning.
| Aspect | Details |
|---|---|
| Corporate Income Tax | 15% flat rate |
| Reduced Rate | 0–5% for micro-companies meeting size criteria |
| VAT | Not applicable on crypto-to-fiat or crypto-to-crypto exchanges |
| Dividend Withholding Tax | 15% on profit distributions |
Accounting must follow standard Lithuanian regulations. While there are no special tax filings for crypto firms, accurate bookkeeping and audit readiness are essential.
Application Process: Step-by-Step
Obtaining a Lithuanian crypto license involves three clear stages:
- Company Formation (5 working days)
Register a UAB either from scratch or through a ready-made company purchase. - Document Preparation (Up to 7 working days)
Gather and finalize all required materials, including business plans, CVs, and compliance policies. - FCIS Review (20 working days)
Submit the application; FCIS will assess completeness and compliance before issuing the license.
Total estimated timeline: 3–4 weeks
👉 See what it takes to get your crypto license approved quickly and efficiently.
Required Documents for License Application
To ensure a smooth approval process, prepare the following:
- Valid passport copies of all company officials
- Power of attorney (for remote applications)
- Detailed description of planned crypto activities
- Professional CVs of directors, owners, and AML officer
- Website URL where services will be offered
Criminal record certificates (not older than 3 months) for:
- Shareholders
- Directors
- Ultimate Beneficial Owners (UBOs)
- AML Officer
- UBO data (if requested by FCIS)
⚠️ An AML officer is mandatory. This individual must have relevant experience and a clean reputation. They are responsible for ongoing compliance, customer due diligence, and transaction monitoring.
Frequently Asked Questions (FAQ)
Q: Can I apply for a Lithuanian crypto license without living in Europe?
A: Yes. Non-residents and non-EU citizens can fully own and operate a Lithuanian crypto company remotely.
Q: Is there a minimum capital requirement beyond €2,500?
A: No. Unlike other EU countries, Lithuania does not require additional regulatory capital for licensing.
Q: Do I need to hire local employees?
A: No. There is no obligation to employ Lithuanian residents.
Q: How long does the entire process take?
A: Typically 3–4 weeks from company registration to license issuance, assuming complete documentation.
Q: Are there ongoing reporting requirements?
A: Yes. You must report changes in structure (e.g., directors, UBOs) and maintain AML/KYC records accessible to regulators.
Q: Can one company hold both exchange and wallet licenses?
A: Absolutely. Many operators choose to obtain both for comprehensive service offerings.
Final Thoughts: Is Lithuania Right for Your Crypto Venture?
With its low costs, fast processing, remote setup options, and EU alignment, Lithuania stands out as a top destination for launching compliant crypto businesses. Its balanced approach between innovation and regulation makes it especially attractive for startups aiming to scale across Europe.
Whether you're building a decentralized exchange, a custodial wallet platform, or a hybrid fintech solution, Lithuania offers a solid foundation with minimal friction.
By leveraging this opportunity now, entrepreneurs can position themselves ahead of tightening regulations elsewhere in the EU—establishing trust, legitimacy, and long-term growth potential in the global digital asset economy.