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Lithuania Plans To Tighten Its Scrutiny Over Crypto



Lithuania is planning to tighten its scrutiny over crypto. As the local Ministry of Finance announced last Wednesday, various ministries of the Lithuanian government approved legal amendments to Anti-Money Laundering (AML) and countering the financing of terrorism in the crypto sector.


It has been reported that the amendments to the current law, should they later be approved by the Seimas, Lithuania’s legislature, would stiffen the guidelines for user identification and prohibit anonymous accounts. The new regulations would also tighten up demands for exchange operators, from January 1, 2023, they will be obliged to register as a corporate body with nominal capital amounting to no less than 125,000 euros.


However, the senior management of such companies would have to be permanent residents of Lithuania.


The announcement stated:

“More nuanced regulation of the suppliers of crypto-services is also important considering the international regulatory tendencies and the geopolitical situation in the region when many Western countries impose financial and other sanctions on Russian Federation and Belarus.”

The report stated:

“More nuanced regulation of the suppliers of crypto-services is also important considering the international regulatory tendencies and the geopolitical situation in the region when many Western countries impose financial and other sanctions on Russian Federation and Belarus.”

Likewise, Minister of Finance Gintarė Skaistė explained that the steps on the national level are taken in accordance with the upcoming pan-European regulations. The announcement underscores the swift rise of crypto companies in the country after a regulatory tightening in neighboring Estonia, there were only eight new crypto companies in 2020, while 2021 saw the appearance of 188 new entities.

Estonia announced its update on the AML act in September 2021. The updated law effectively banned noncustodial software wallets and decentralized finance products. In April 2022, the European Parliament approved an AML regulatory package that could place severe disclosure requirements on transactions between noncustodial wallets and crypto exchanges in the European Union.


Thus, the draft law is still to be adopted by the parliament. Amendments to the law are expected to enter into force on November 1, 2022. The majority of key provisions would take effect from January 1, 2023.


Source: Cointelegraph


 

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