The Baltic nations of Latvia and Lithuania are following the example of other investor nations and are about to tighten their grip around crypto regulations. The new rules will focus mainly on the prevention of money laundering.
Estonia already adapted a stricter AML regulation following the invasion of Ukraine by Russia, as more Russians are using to funnel crypto money to fund their military operations.
In Lithuania, the finance ministry has propose that all new crypto firms be required to hold at least €125 000 as proof of capital and to be able to abide by brand new transparency rules that will allow regulators to check for inconsistencies in files and reports. Moreover, all Lithuanian crypto businesses, those with international headquarters, will be required to hire at least one local manager.
Estonia’s non-transparent crypto regulators until now allowed for companies to base their businesses in the Baltic jurisdiction whilst operating form outside the nation, from afar without a rep of the firm on the country’s soil. This resulted in a plethora of shady firms that took advantage of the looser laws, while maintaining offshore registrations which provided opaque funnels for funds.
The updated rules will see to these issues. All companies will have to hold a standing capital of at least €100 000, while crypto-based firm minimum capital requirement is raised to €250 000
Both nations’ crypto businesses will also have to pay an increased registration fee, as well as follow other pedantic guidelines, as well as be subjected to regulators’ constant scrutiny.