Like any commercial activity, cryptocurrency trading implies special permissions. The licensing provisions of this process are based on the special status of electronic money. It is not in the literal sense of the word a crypt. Nevertheless, it is actively used in settlements and receipt of goods (services). Also, tokens are often considered a means of storing savings. The demand for exchange transactions allows you to conduct business successfully in this area. The sooner the necessary package of documents is completed, the less time it will take to return the invested funds and start working on a net profit.
Today we want to discuss how long it takes to obtain a Lithuanian crypto exchange license and understand what mistakes can lead to delays in getting a work permit.
Preliminary Stage
From an organizational point of view, the first step with the operations of a crypto exchange is the choice of a state that will act as a national platform for work. Doing crypto business has a weighty positive argument in the form of a lack of geo-referencing. It is common practice to conduct a cryptocurrency exchange in North America using East Asian marketplaces.
Transferring a functioning financial enterprise to another state jurisdiction is a very complex process that is best avoided. It would help if you studied the provisions of local legislation and its requirements for the blockchain. The ambiguity of classifying the crypt as a means of payment in many countries has formed an excellent attitude toward this issue. For example, China’s economic monster banned the mining and circulation of cryptocurrencies in its legal field. In addition, the leadership of the PRC is actively searching for violators and blocking the remaining opportunities for the circulation of tokens.
States with no global industrial base are more benevolent towards crypto exchanges. For example, Singapore and Estonia are trying to replenish state budgets by issuing licenses to circulate tokens. Plus, there is loyal tax legislation on this issue. The state of affairs at the current stage has yet to be global, but the number of market participants is growing.
However, you want to get a work permit in the shortest possible time in a European jurisdiction. In that case, we advise you to choose Lithuania, as there are straightforward rules for regulating the crypto industry, low taxation, and a speedy way to obtain a work permit.
Key Events
Knowing the nuances of the law allows you to save the total time to obtain a license. For almost any state, the need to include the following provisions is observed:
- payment of the state fee;
- opening accounts in local banks;
- formation and confirmation of the authorized capital;
- hiring general staff;
- training and registration of employees responsible for anti-corruption work and combating the shadow circulation of funds;
- rent premises for an office, and organize its work.
Only after completing these steps is it allowed to apply for a license. Some minor issues can be brought to the established norms already in the process, but it is better to be immediately ready for all possible checks.
Regulations in most countries limit the application processing time to 60 days, but in Lithuania, it is 14 days. It is a reasonable period to study all the provisions of the submitted documents carefully. You should be prepared for additional checks on the main points the licensing authorities will carry out.
Particular attention should be paid to the selection of personnel. A typical provision is that only a resident of the state can be a director of a company. The exact requirement applies to financial security officers. The ultimate beneficiary can formally be from any country.
Employees of the management team must have an excellent legal background. Bringing criminal or administrative responsibility may lead to the rejection of candidates. Local recruitment agencies are well aware of this feature and have a reserve for quickly providing candidates.
Speeding Up the Process in a Legal Way
If it is necessary to minimize the time for obtaining permits, the best option is to engage an intermediary company deployed directly in the state of interest. Experienced employees are well aware of not only the formal requirements of national legislation but also how to emphasize achieving results correctly and quickly.
In addition to legal details, the issue of knowledge of the language is relevant. Not all states provide forms to fill out in English. Using a translation agency will cause additional costs, and using a computer assistant will not provide the required accuracy at all. Lawyers who are native speakers will efficiently study all the different provisions of the contracts and will be able to conduct all the necessary correspondence.
Difficulties may arise when renting premises, as direct rent to a foreign agent may be prohibited. The problem is quickly solved if this person is a resident. The intermediary will save you from the prospect of unnecessary expenses that arise when renting an unsuitable object.
Opening bank accounts can be done independently quickly, and this procedure is almost always carried out online. An essential condition is full compliance with anti-money laundering procedures (AML). Some provisions of this issue need to be spelled out in the regulatory documents but are accepted as national practice.
Common Mistakes
The time for obtaining a permit will be exceeded if there are inaccuracies in acquiring materials. Even the absence of one extract or certificate will lead to the return of a package of documents. In this case, a soft option would be if the refusal message comes immediately and not upon reaching the specified period.
Any issue in the financial sector in the preparation of documents should be treated with particular scrupulousness. The delay in clarifying the materials should be regarded as a forced pause since neglecting any requirements here will entail disproportionately large losses in time. In the worst-case scenario, the applicant will be denied opening a license, which will entail preparing a package from scratch.
The selection of personnel in the organization of the crypto exchange work has several features. If the technical staff can have citizenship of any country, then the management and control staff must have a passport of the state issuing the license. Similar requirements may apply to the board of directors, if any. Since the crypt, by its characteristics, refers to financial instruments that are difficult to control, a transparent personnel policy is a generally accepted norm here.
With a sufficient reserve of financial resources and a qualified distribution of efforts, it is possible to become the owner of a working token sale business in just 1.5 months. This period includes the official consideration of the application by the authorities.
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