On 20 September, the Bank of Lithuania announced draft resolution No. 24-15352 “On the Coordination of the Draft Resolutions of the Board of the Bank of Lithuania” (hereinafter – the Resolution) for public consultations. This draft proposes several important resolutions, including the resolution of the Board of the Bank of Lithuania “On the Approval of the Licensing Rules for Crypto-Asset Service Providers” (hereinafter – CASP Licensing Rules or the Rules). The goal of this draft Resolution is to ensure the efficient licensing process for crypto-asset service providers (hereinafter – the CASPs) in accordance with Regulation (EU) 2023/1114 of the European Parliament and of the Council on markets in crypto-assets (hereinafter – MiCA) and the Law on Cryptocurrency Markets of the Republic of Lithuania.
More information HERE
In light of the fact that the Rules have been submitted for public consultation and coordination, we would like to invite you to submit your comments or suggestions on these Rules by 1 October to TGS Baltic. This will enable us to consolidate them and submit them to the Bank of Lithuania for consideration.
CASP Rules
The CASP Licensing Rules set out the procedure for submitting and reviewing an application for a CASP licence, as well as the main documents to be submitted with the licence application. The Rules also set out the requirements for the content and form of the documents to be submitted, the procedure for issuing and amending the licence, and the procedure for notifying changes to the information submitted when applying for the CASP licence.
Furthermore, the Rules stipulate that all documents that must be provided to clients before the provision of crypto-asset services must be prepared in Lithuanian. The Bank of Lithuania may also request the submission of additional documents in Lithuanian.
Application assessment and decision-making process
- Upon receiving the applicant’s submitted application, the Bank of Lithuania will assess the completeness of the submitted documents within 25 working days. If not all required documents are submitted, or they do not meet the requirements, the documents may be returned to the applicant within 5 working days. If the submitted documents are incomplete, the applicant will be given a deadline to submit the missing information. During the review process, the Bank of Lithuania may request additional documents or clarifications.
- If the submitted application is deemed complete and compliant with the requirements, the Bank of Lithuania will begin reviewing its substance and make a decision on whether to issue or refuse the license within the timeframe established by the MiCA regulation. The reasons for refusing to issue a license are defined in the MiCA regulation.
- If the license is granted, a copy of the decision will be sent to the CASP, specifying the crypto-asset services that may be provided.
Amendment and supplementation of the license
- If CASP wishes to offer additional services that are not included in their existing license, they must apply to the Bank of Lithuania for an amendment or supplementation of the license. Additional services may only be provided after obtaining the relevant license.
Changes to data and documents
- A licensed CASP must notify the Bank of Lithuania of any changes to the data or documents submitted at the time of licensing within 15 calendar days of such changes. This may include changes to the company’s name or legal status.
Transparency of the licensing process
- All decisions regarding the issuance, amendment, suspension, or revocation of the license will be publicly announced on the Bank of Lithuania’s website.
Other draft resolutions submitted for coordination
In addition to the CASP Licensing Rules, the following draft resolutions have also been submitted for coordination:
- A draft amendment to the 12 September 2017, Resolution No. 03-138 of the Board of the Bank of Lithuania “On the Approval of the Rules for Submitting Notifications on the Acquisition and Disposal of a Qualifying Holding of the Authorised Capital and/or Voting Rights in Financial Market Participants under Supervision of the Bank of Lithuania”;
- A draft amendment to the 14 November 2013, Resolution No. 03-181 of the Board of the Bank of Lithuania “On the Approval of the Guidelines for the Assessment of Members of the Management Body and Key Function Holders of Financial Market Participants Supervised by the Bank of Lithuania”.
