What are the steps to get an EMI permit?
Each jurisdiction sets its own rules for regulating virtual currencies. An EMI license is required to issue electronic coins in the European Economic Area. Such licensing will allow your organization to conduct transactions, create electronic vaults, and many other virtual currency-related operations. And one of the most attractive jurisdictions for obtaining a permit is Lithuania.
General information
The regulatory body responsible for controlling crypto organizations in Lithuania is the State Bank of Lithuania, which has a loyal attitude towards crypto companies and has been conducting its financial activities for no more than a year. There are practically no penalties for such newcomers, and if corrections are possible, they are minimal.
The EU Directive for the Lithuanian Bank serves as the legislative basis for regulating crypto business in the country. Considering the submitted papers may take up to three months, you may be asked for additional information during this time.
The SEPA payment system operates in Lithuania, which includes several dozen countries worldwide. Thanks to the presence of SEPA, your organization will be able to make financial payments in the jurisdiction of these countries.
Consider the basic requirements
For the licensing process to begin, your organization must meet several conditions. The size of the authorized capital of the company must be at least 350 thousand euros, and it is necessary to present documents that will indicate where your money came from. You will also need to rent an office in Lithuania (or purchase) and document this (lease agreement or purchase/sale agreement) and provide the bank details of the organization.
The company director must have a diploma of higher financial or legal education. You need to appoint a responsible person in your company to control the implementation and compliance with the rules of AML. These requirements are still being determined, but the most basic ones are listed.
What documents must be presented to the Regulator?
To start the process of obtaining a license, your organization must provide the regulatory body with a package of documents that includes the following items:
- statutory documents and details of the organization;
- confirmation from the bank that the authorized capital has been deposited into the account;
- passports of the management team of the organization (founders, directors, shareholders) and a certificate of no criminal record;
- confirm the application of the AML and KYC policy;
- provide a lease agreement for office space (or its acquisition) within the state borders of Lithuania;
- provide a detailed business plan indicating the structure of the organization;
- confirm financial security (accounting, auditing, analysis of possible risks).
It is approximately the list of required documents for obtaining a license.
Related:Understanding the Basics: What is a Crypto Wallet and How Does It Work?
Steps to obtain an EMI license
So, what steps must you take to pass the licensing successfully?
Initial analysis of the business plan
At the preliminary stage, they will consider your organization’s business plan and the prepared document package. Then there will be a preparatory stage for a meeting with a bank representative where you plan to open an account. This period will take up to a month, and you will spend about 3,000 euros.
Intermediate Licensing
During this period, the company’s infrastructure will be assessed, the presence of a physical office in Lithuania will be checked, and the identity of your employees will be matched, as well as their skill level. At least four employees of your organization must be present in the country.
At this stage, you open a bank account and deposit at least 350,000 euros. The intermediate licensing will last up to three months and cost 17,000 euros.
Licensing
This period involves a thorough study of the financial activities of the company and its real potential in the crypto industry. The regulatory body will check the submitted documents and carry out IT procedures. Also, consider implementing AML and KYC policies. Then you apply for a license and pay the state fee. The licensing process can last up to six months, and you must spend about 15,000 euros.
Organization of company infrastructure
During this period, you provide your firm with hardware and software that must meet specific standards for crypto activities. Then, interviews and consultations are held with employees of your organization, the KYC and AML program is checked, and negotiations are underway with bank representatives to resolve all the requirements related to cryptocurrency activities. The final stage will take place in 3 months at maximum, and the costs will be approximately 10,000 euros. If the required package is sufficient and fulfills all conditions, your organization will receive EMI licenses in one of the best jurisdictions in Europe.
