Learn why new regulations and Lithuania’s current stance on start-ups is making the country one of the safest places to do business.
On 8th June 2018, the Lithuanian government have released new guidelines on Initial Coin Offerings (ICOs).
Vilius Sapoka, the Lithuanian Minister of Finance, said: “We (the Lithuanian government) acknowledge that the brave new crypto economy world is here to stay, this is why we encourage and invite its participants to innovate and create in Lithuania.”
As one of the first countries in Europe to prepare comprehensive guidelines on the legal framework for ICO projects, Lithuania has positioned itself as an innovator and forward-thinking nation who are willing to safeguard and help advance the cryptocurrency market.
How can the guidelines benefit businesses?
The new set of guidelines covers a range of elements including taxation, anti-money laundering (AML) and accounting, enabling them to clearly regulate across the board.
The introduction of the guidelines states: “These guidelines are another step towards more certainty and transparency in the regulatory, taxation, accounting and other requirements as well as better cooperation between different stakeholders”.
With every country in the EU forming their own opinion on cryptocurrency and blockchain technology, Lithuania has made a positive step towards regulating the industry.
While it might appear like another system and process to adhere to, it will actually help to prevent anti-money laundering (AML) and give businesses a peace of mind knowing they aren’t breaking some unknown law in the process.
By applying the 15% taxation on cryptocurrency and giving businesses clarity on what to include when doing their accounting, they’ll be able to have a clearer idea of what is the right way to function and what isn’t.
Why Lithuania could be the perfect place to trade
As well as the new ICO guidelines, there are a lot of benefits to trading or forming a business in Lithuania. For instance, their government have set a real emphasis on creating new jobs and supporting new businesses who want to grow using native specialists to enter the EU market.
Lithuania is geographically quite central, making it perfect for transporting goods around the rest of Europe too. The low costs of accounting and admin, plus a low tax rate are also highly beneficial to a start-up business owner.
However, one of the biggest positives in favour of Lithuania is their start-up visa for entrepreneurs. This programme allows ambitious individuals from other countries to easily start a business in their country, without the need to fulfil certain capital or employment regulations.
On the whole, the positive change of the ICO guidelines paired with the affordable jurisdiction to register a business makes Lithuania a promising country to trade in.
