Central Bank of Lithuania to have changed the rules for crypto assets

The Central Bank of Lithuania (Lietuvos Bankas) has revised its position in relation to cryptocurrencies and tokens that were issued using ICO.

The country's regulator decided to change the definition of these assets and indicated the conditions, which financial institutions would be able to work with digital funds and perform crypto-transactions.

«Virtual actives» and cryptofunding

As stated in the official press release, the Central Bank of Lithuania replaced the term “virtual currency” by the definition of “virtual assets”. Also, financial market participants are now organizations that place initial coin offering (ICO) and companies that provide services to Lithuanian residents wishing to invest in these financial products.

According to the rules of the Central Bank of Lithuania, financial institutions are not allowed to accept payments or issue in cryptocurrencies. Payments should only be made in fiat to limit risks with digital assets. However, the Central Bank allows companies to receive cryptocurrency payments converted into a local currency. It also remains mandatory customer verification and the limit on the volume of operations.

Lithuania allows the ICO conducting

The Central Bank of Lithuania will create a number of conditions for registering investment funds for professional investors. Crypto-funds will be able to work in Lithuania, if they comply with the Lithuanian law requirements and the principles of the Central Bank.

Lietuvos Bankas also stated that ICO could be conducted through crowd funding platforms. Such activities are governed by the laws of crowd funding and securities of Lithuania. At the same time, the provision of cryptocurrency securities to the public must comply with EU directives. One of the requirements is to indicate other member countries where tokens will be placed so that the bank can notify local authorities.

The Law &Trust International provides legal support for Blockchain and ICO (TGE) projects, its features in different countries of the world. We also offer a range of services and procedures that will help you conduct an ICO under the necessary conditions.