Lithuanian Ministry of Finance to introduce legal changes for crypto-related companies

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The Ministry of Finance of the Republic of Lithuania is planning to submit legal amendments to the operation of crypto-related companies in the country, reports the Baltic Times newspaper in Riga on 8 April.

According to the report, the Lithuanian Ministry of Finance wants to offer more legal certainty for the operation of companies with regard to cryptocurrency exchanges, crypto wallet operators and initial currency offers (ICO & # 39; s).

By enforcing legal requirements in the sector, the authority is reportedly trying to ensure an efficient policy against money laundering and terrorist financing, and to ensure an appropriate level of consumer protection, writes the articles.

The new amendments propose that companies engaged in crypto & # 39; s must be registered at the center of registers in order to act as a legal person. Companies will also have to strictly implement the Money Laundering and Terrorist Financing Prevention Act, as well as the Know Your Customer (KYC) laws, including reporting large financial transactions to the Financial Crime Investigation Service (FCIS).

As The Baltic Times reports, operators will be required to identify users and verify their identity prior to providing services if the operational value exceeds 1,000 euros ($ 1,120).

Sigitas Mitkus, director of the Financial Market Policy Department of the Ministry of Finance, said that introducing limits for financial operations is a new practice under the European Union directive.

According to Mitkus, Lithuania could become the first country in the world to implement recommendations of the Financial Action Task Force (FATF) and apply requirements, not only in terms of crypto-to-fiat conversion, but also in terms of internal crypto trade, take notes.

Earlier this year, the Bank of Lithuania released an updated document on its official position to cryptocurrencies and ICO & # 39; s, claiming that financial market participants are still authorized to receive payments only in traditional fiat currencies and not may be paid in crypto.

In early March, the FATF published provisional guidelines for cryptocurrencies, urged countries to prevent money laundering and terrorist financing, and introduced crypto-related licenses and KYC processes.

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Don Bradman

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