The Seychelles-based crypto exchange, BitGet, is officially registered as a digital asset service provider in Lithuania. BitGet announced it had met the compliance requirements and regional guidelines in the European country to set up shop in the Baltic nation.
BitGet Bags Lithuania Registration
According to the crypto trading platform, Lithuania is a crypto and blockchain hub and one of the emerging digital asset markets in the European Union bloc. Reports reveal that Lithuania saw a significant increase in crypto companies getting official approvals in 2022 as firms look to secure registration in the country.
This comes after Estonia, a neighboring European nation, reportedly revoked hundreds of operating licenses in a nationwide crackdown on crypto exchanges in 2021. According to BitGet, Lithuania is an attractive destination for digital asset companies due to its investor-friendly regulations and operational standards.
The crypto derivatives platform aims to boost its compliance effort by operating in the Baltic state, according to Gracy Chen BitGet’s managing director. Chen noted that the global crypto regulatory landscape is rapidly changing and that Bitget is observing the changes across different jurisdictions.
Accordingly, the managing director added that the crypto derivatives exchange has a dedicated compliance unit focusing only on regulatory and compliance issues. BitGet has operated since 2018 and is one of the oldest active crypto-based businesses.
The firm serves about 8 million users from more than 100 countries. In June 2022, Lithuania began to tighten its digital asset industry rules, focusing on registering crypto companies.
The country’s legislature also proposed legal amendments to its Anti-money laundering (AML) and counter-terrorism strategy. In addition, Lithuania seeks to enforce the requirements for crypto exchanges to comply with a user identification process.
Registration Requirements
As part of the Baltic state’s registration process, digital asset service providers must register as a corporate entity with a minimum capital threshold of 125,000 euros as startup investment funds. Reports also reveal that Lithuania hosts the payment processing company for Binance Holdings Ltd, Bifinitey UAB.
According to data from the country’s tax agency, Bifinitey UAB was the second-largest contributor to Lithuania’s corporate tax last year. Meanwhile, BitGet’s approval comes the same week the European Parliament is bracing for the final vote of the long-waited Markets in Crypto Assets (MiCA) regulations.
The MiCA bill would be the first comprehensive crypto regulation that the EU bloc is expected to implement by 2024 following the final voting by the parliament later in the year. Voting for the MiCA implementation was initially slated for November 2022 but was later moved.
Observers explained that the setback was due to technical issues relating to the national languages of the EU member states. Meanwhile, some market players believe that the MiCA legislation is limited in scope given some of the issues in the crypto space that the regulation is yet to address.
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