Following the decision of the US SEC on ICO and digital assets, Lithuania to has cleared its stance on ICO’s. According to the recent report, the country is planning to beef up control on activities on ICO’s to prevent them from being used for malpractices.
Lithuania looks to ensure better consumer protection with ICO regulation
According to the recent report that was published in The Baltic Times, Lithuanian regulators are planning to step up control of the activity of ICO (Initial Coin Offering) companies, virtual currency exchanges, and depository wallet operators, and also plans to introduce requirements for them to ensure effective prevention of money-laundering and terrorism funding.
Sigitas Mitkus, director of the Finance Ministry’s financial market policy department in the Lithuanian government did speak to media regarding the same. He was quoted saying
“We want to create a transparent legal environment for virtual currency exchanges, depository wallet operators and ICO initiators. We also want to contribute to ensuring better consumer protection,”
The country is looking to be the first European nation to follow FAFT guidelines
“By introducing limits for financial operations, we are going further beyond the EU directive and we will probably become the first in the world to implement the FATF (The Financial Action Task Force) recommendations and apply the requirements not only to the conversion of virtual currency to traditional ones and vice versa but also when converting one virtual currency into another,”
The amendments would be part of transferring the fifth EU Anti-Money Laundering Directive (AMLD 5) and the FATF recommendations, adopted in October, into Lithuanian law. The finance minister clarified that, under these new changes only legal entities and their branches registered with the Center of Registers will be able to act as operators, and they will also have to execute the Law on the Prevention of Money Laundering and Terrorist Financing and to check client’s identity and inform the Financial Crime Investigation Service about large financial transactions.
Under these laws, the operators will also be required to identify clients and check their identity before providing services if the value of the transaction is above EUR 1000 and also provide information to FICS if the value of the transaction is now less than EUR 15000.
This is a welcome move by the European country and definitely a progressive one for the people and companies of Lithuania. One can expect more countries in the coming days to follow the same suit.
ICO regulations: Lithuania to tightens regulations after US guidelines
Will progressive steps by USA and Lithuania force other countries to come clean on their stance? Do let us know your views on the same.