Response Legal | Legal solutions for future blockchain frontiers

Legal solutions for future blockchain frontiers

Navigating new financial waters requires legal guidance. That is why we help companies and the public sector adopt digital assets and blockchain solutions by reducing the compliance gap, whether a legal advisory on integrating tailor-based solutions or the legal implications for businesses already operating in the blockchain scene.

We accept crypto payments

For crypto platforms

For financial institutions

For public sector

Trusted by experts and real users

From the due diligence based on the business goals to the process of acquiring all necessary licenses and certificates, we helped dozens of companies to incorporate as crypto wallet providers, exchange operators, and other financial companies. Always here as a trusted advisor.

FOR CRYPTO PLATFORMS
FOR FINANCIAL INSTITUTIONS
FOR PUBLIC SECTOR

Choose your business package

We help you navigate the fast-changing and complex regulations of blockchain technology and its financial products. So you can focus on what matters to you – achieving the business goals.

LAUNCH PACKAGE

Onboarding to blockchain financials

Company incorporation
Registering as a crypto wallet / exchange provider
Memorandum for self-check on applicable regulations
Employment contracts
Notice to FCIS
Legal Memorandum for partners

MAINTENANCE PACKAGE

Suite for sustaining your business

Management training on internal governance, compliance & responsibilities
Preparing AML / CTF documents
Enterprise-wide ML/TF risk management assessment
AML/CTF audit
Preparing GDPR and labor law documents
Compliance audit
Compliance and DPO outsourcing
Regtech solutions for AML / CTF

CONUNDRUM PACKAGE

In case of trouble

Representation at supervisory authorities
Representation at court
Legal analysis of your business model / complex questions

Not quite a standard situation?

+370 670 04194 INFO@RESPONSE-LEGAL.COM

Meet the possibilities

Since the advent of bitcoin, the cryptocurrency market has expanded to more than 2 trillion in value, with over 8 thousand currencies continuing to grow daily. Stay at the top of the game – integrate crypto into your business.

DIGITAL ASSETS ADOPTION PACKAGE

Incorporation of the blockchain financials into your business

Tailor-made solutions for adopting digital assets
Evaluation of possibilities and risks
Collaboration with range of digital competence providers
Guidance in compliance and other obligatory policies integration

Need advice?

+370 670 04194 INFO@RESPONSE-LEGAL.COM

The fast changing crypto currency environment requires always-on attention that might be difficult to sustain.

NAVIGATION PACKAGE

By participating in different initiatives and following developments in crypto industry worldwide, we help public sector authorities:

to understand cryptocurrency industry
to supervise cryptocurrency industry
to regulate cryptocurrency industry

Need advice?

+370 670 04194 INFO@RESPONSE-LEGAL.COM

Meet our crypto team

We speak your language and values. Understanding the inside outs of the cryptocurrency industry, we can offer legal solutions fit for your individual business needs.

Dr. Vytautas Šenavičius

Managing Partner, Attorney at Law

Jekaterina Govina

Partner

Why Lithuania?

Lithuania is an advanced European Union jurisdiction for effectively authorizing a company wishing to be a virtual asset service provider (“VASP”) and is preferred by many international VASPs that started or expanded their virtual asset related service provision in Lithuania. Currently, there are two types of VASPs in Lithuania:

Cryptocurrency exchange operator – such VASPs are authorized to exchange cryptocurrency to fiat or another cryptocurrency, or to exchange owned fiat to cryptocurrency;
Cryptocurrency depository wallet operator – such VASPs are authorized to provide cryptocurrency depository wallets for its customers, where customers may deposit and transfer their cryptocurrency.

Upcoming requirements

While the European Union countries are preparing for the Markets in Crypto Assets Regulation (“MiCA”), which should not come into force earlier than the year 2025, Lithuania has started its preparation early. Lithuania started adopting some similar to MiCA requirements that are coming into force in the upcoming months. Some of the newly confirmed requirements are mentioned below.

How long does it take to become an authorized VASP in Lithuania?

From the receipt of the documents and information required, the timeframe to be authorized as a VASP in Lithuania may be about 2 weeks.

Can an abroad-established company be authorized as a VASP in Lithuania?

Only limited liability companies (“UAB” in Lithuania) established in Lithuania can apply for the VASP authorization. We may offer you a prompt company incorporation process in Lithuania, which would eventually lead you to a speedy authorization to provide virtual asset services. There is no requirement for the founders (shareholders) of Lithuanian companies to be present in Lithuania during the incorporation process of the company.

What are the capital requirements for VASPs?

The minimum share capital requirement for VASPs currently is EUR 2 500. However, in accordance with the newly confirmed Lithuanian legislation project, the minimum share capital requirement for VASPs shall be EUR 125 000.

General anti-money laundering and terrorist prevention (“AML/CTF”) requirements for VASPs

Under the current legislation VASPs are required to:

perform a proper customer identification and due diligence under the requirements arising from the national AML/CTF legal acts (for example, VASPs must carry out the necessary actions to identify the customer and its beneficial owner as well as verify theiridentity before carrying out any operation, related with virtual assets that amounts or exceeds 1 000 EUR or more). However, in accordance with the newly confirmed Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing project, VASPs shall be obliged to carry out the necessary measures to identify the customer and the beneficial owner as well as verify their identity before carrying out virtual currency exchange operation or transaction in virtual currency with its funds amounting to EUR 700 or more;
perform an ongoing transaction monitoring processes in order to identify potential AML/CTF risks;
record transactions into journals and submit the required information to the Financial Crime Investigation Service under The Ministry of the Interior of the Republic of Lithuania (“FCIS”) (for example, VASPs must notify the FCIS about such operations where the value of the customer’s single operation or of several linked operations amounts to EUR 15 000 or more).

Requirements for managers

The managers of VASPs should have good repute, meaning that such persons cannot be convicted of serious or grave crimes, or crimes with intent against property, property rights and interests, the economic and business order, the financial system, the civil service and the public interest.

It is important to know that under the newly confirmed Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing project, VASPs shall be required to have a senior managing official who is a permanent resident of Lithuania. In addition, VASPs managers may not represent more than one VASP at the same time, except in cases where such VASP belong to one group of companies.

Does “travel rule” apply for VASPs?

Currently, the “travel rule” does not apply for the VASPs, however, in the upcoming couple of years, it is expected to enable the “travel rule” to oblige VASPs to receive, store and transmit information about the payment initiator and recipient in order to identify, report and freeze suspicious transactions.

Can financial institutions engage in virtual asset service provision?

Financial institutions holding a licence in the Republic of Lithuania are not forbidden to provide virtual asset services. However, such Lithuanian financial institutions should firstly inform the supervisory authority Bank of Lithuania about the additional business activities. Meaning, financial institutions should firstly reconcile such business model, all the potential risks mitigation measures and additional compliance and AML/CTF requirements with the Bank of Lithuania. Our team may fully represent you with the Bank of Lithuania by evaluating your potential business model and providing you with the relevant legal advice to have your financial institution authorized as a VASP.

What can we offer?

Our Professional law partnership can offer you an efficient start-to finish process to be an authorized VASP in Lithuania. You would be provided with starting from the specific company’s incorporation, full coordination of the VASP establishment, as well as representing and communicating with the relevant authorities (such as FCIS).

Your business partner, not just a law firm

We don’t create problems just to bill them, we actually solve them.

+370 670 04194 INFO@RESPONSE-LEGAL.COM