The Electronic Money Institution License in Lithuania is a license issued by the Bank of Lithuania. This license grants the holder the ability to provide various electronic currency services as an electronic money institution, including issuing electronic currency, managing electronic wallets, and processing electronic payments.
Advantages:
Compliance and trust: Holding an electronic money institution license enhances the compliance and trustworthiness of the exchange in the market. The license is a recognition from regulatory authorities, conveying a reliable and regulated image to users and investors.
Expanded market and customer base: Obtaining the license allows virtual currency exchanges to provide services within Lithuania. As a member of the European Economic Area, Lithuania has a vast European market, providing greater business development opportunities for exchanges and attracting more customers.
Access to the European market: As part of the European Economic Area, exchanges holding the license can gain broader market access through the common guidelines and standards of the European financial market.
Financial regulation and protection: Obtaining an electronic money institution license means that exchanges must comply with the regulatory provisions and requirements of the Bank of Lithuania. This helps ensure that the exchange's operations align with the best practices of the financial industry and provide a higher level of customer fund protection and security.
Credit card and bank partnerships: Exchanges holding the license can more easily establish partnerships with banks and credit card institutions, providing convenient deposit and withdrawal services and increasing user experience and convenience.
Steps we are responsible for in the registration process:
-
Prepare application materials: Collect and prepare the required application documents and information.
-
Company documents: Including articles of incorporation, registration certificates, company registered address, etc.
Director and senior management information: Including personal information, resumes, background check reports of directors and senior management.
Business plan: Provide a detailed business plan, including the company's operating model, market analysis, financial forecasts, etc.
Submit the application: Submit the prepared application documents to the Bank of Lithuania. Ensure that the application documents are complete, accurate, and comply with the specified application submission methods and deadlines.
Review and due diligence: The Bank of Lithuania will review and conduct due diligence on the application materials, including evaluating the background, financial status, compliance procedures of the company and relevant individuals.
License issuance: If the application is approved, the Bank of Lithuania will issue the electronic money institution license. The issuance of the license may come with certain conditions and restrictions, which the applicant must comply with and meet the requirements of the license.
Scope:
-
Provide payment accounts to customers and accept customer storage services.
-
Provide withdrawal services to customers.
-
Execute payment transfers: Provide transfer services to customers with open payment accounts, remitting customer funds to other customer accounts within the same payment system, or remitting customer funds to other financial institutions or payment institutions. This includes single or multiple transfers from cash accounts, payments through debit cards or similar methods, as well as transfers of credit limits and regular payments.
-
Execute payment transactions, including transferring funds from the payment account of the payment service user to the payment service provider of another payment service provider: direct debits, including one-time direct debits, payments executed through payment cards or similar devices, and/or credit transfers, including standing orders.
-
Execute payment transactions where the payer agrees to pay the payment platform through any telecommunication terminal equipment, digital or device and telecommunication network or IT system operator, or acts as an intermediary and intermediary between a supplier of goods or services and a customer using payment services.
-
Services allowing cash to be placed on a payment account.
-
Services enabling cash withdrawals from a payment account.
-
Execute payment transactions where the payment transaction is covered by a credit line for the payment service user: execute direct debits (including one-time direct debits), execute payment transactions through payment cards or similar devices, and/or execute credit transfers (including long-term orders).
-
Issue and/or acquire payment instruments.
-
Transfer funds.
The electronic money institution license in Lithuania is an important milestone for virtual currency exchanges. It not only demonstrates the compliance and reliability of the exchange but also provides opportunities for expanding business and attracting more users in the European market. At the same time, being regulated by the Bank of Lithuania allows the exchange to comply with industry standards, protect user funds, and establish partnerships with banks and credit card institutions to provide more convenient services. By obtaining such a license, virtual currency exchanges can stand out in a competitive market and create a secure and trustworthy trading environment for users.