How to Start a Blockchain Business in Lithuania?

Lithuania

Interest in blockchain is hard to overestimate. More and more companies worldwide are using Lithuanian crypto licenses to grow their business. Today, such technology you may use for cryptocurrencies and in many other areas. It allows you to solve many problems, increase the level of trust and improve security.

What industries can use blockchain?

Blockchain is a unique database; it works in a decentralized manner. All data is encoded and stored as a backup on different computers on the network. The advantage is that all information is recorded automatically and immutable, allowing you to prevent fraud at any level completely. Almost any industry can use blockchain, but this technology is most common here:

  • Pharmaceutics;
  • Tourism;
  • Logistics;
  • Heavy and light industries;
  • Agriculture;
  • Finance and more.

Today there are 2 main types of blockchain – public and private. In the first case, the data registered here can be viewed by all people. Second, the owner of the datum can decide which information can be displayed to the public and which should be as private as possible.

In Lithuania, in 2017-2018, there was a boom in blockchain startups. They mainly concerned the financial and IT. Most of these projects turned out to be very effective, so the interest in this technology among startups remains consistently high.

Of course, in most cases, blockchains are used to exchange and store cryptocurrencies and tokens, but recently more and more companies are using this database for other industries.

Benefits of Using

Every industry has its advantages of using blockchain, but some points will be actual for any area:

  • Data protection;
  • Ability to use cryptocurrencies;
  • Increasing user confidence;
  • Ability to use smart contracts and other.

Smart contracts are a special kind of agreement. Both partners establish their rules of cooperation in advance; the program code is prescribed. As soon as the system registers that all the agreed conditions have been met, money is debited from the customer’s account. It allows you to prevent fraud and make all transactions more transparent. You can use smart contracts for both cryptocurrencies and fiat currencies.

Because all data is stored immutably, many businesses use it to increase trust. So, some industrial giants use technology to provide a report on emissions of harmful substances. Agricultural companies may use blockchain to prove that they did not use GMOs or harmful pesticides. Similar examples can be found for any industry.

Legal aspects of using blockchain

Lithuania is a country that has a very liberal attitude towards innovative technologies. It is possible to create a business based on cryptocurrency, subject to obtaining a special license. It comes in two varieties: for exchanges or wallets. The choice depends on what tools you plan to use. You can get one or both licenses.

Any company with official registration, where two people work – the owner and at least one board member, can obtain a license to register an exchange or wallet. The authorized capital of the company must be more than 2500 Euro. The most important criterion for getting a permit is reputation. All employees and clients should not have problems with the law, criminal records, or connections with criminal elements. You may also be denied a license if the documents are not in order.

order

After obtaining a license, you will be required to submit activity reports. If the regulatory authority finds errors or refuses to provide any information, you will lose your work permit.

Cryptocurrency currency exchange services are not subject to VAT, payment for goods and services is carried out according to the same rules as fiat currency. Several banks in Lithuania operate under an EMI license, which means they work with cryptocurrencies.

If you plan to enjoy the benefits of such technology but you do not want to use cryptocurrencies, then there is no need to obtain a license.

How to start a business?

Organizing a business using blockchain is highly dependent on what industry you are interested in. If you want to create a crypto exchange or wallet, then you have to go through the following steps:

  • Prepare the required software;
  • Register a company employing at least 2 people with a capital of at least 2500 Euros;
  • Register a virtual office address in Lithuania;
  • Open a bank account;
  • Create a business plan taking into account all possible risks, prepare other documents;
  • Submit documents to the relevant authorities;
  • Submit documents to the Anti-Money Laundering Bureau for the subsequent entry of the company into the Lithuanian registers.

Both a resident and a non-resident of the country can open a crypto exchange or wallet. Applicants can apply for a license to state authorities on their own or use the services of our agency.

The rules for creating a business without using cryptocurrencies but with blockchain do not differ from ordinary entrepreneurs. You need to register a company and take care of creating software.

Conclusion

If you want to make your company open, honest, and profitable, use cryptocurrencies; blockchain will be a good choice. Starting a business using this is not much more difficult, but we can solve many problems.

If you want to establish a crypto exchange or wallet, you must obtain the appropriate license. In our agency, you can find a reliable partner who will answer possible questions or take over communication with government agencies.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.