- Lithuania is beefing up its control of cryptocurrencies in an effort to thwart money laundering and alleged Russian elite efforts to evade financial sanctions.
- The names of bitcoin exchange operators will be made public by the Registrar of Legal Entities. Furthermore, the plan emphasizes the strict rules in light of the crypto industry’s rapid growth and specific geopolitical problems.
- The proposed modifications to the current law, if implemented by the Lithuanian legislature, will tighten the standards for user identification and prevent anonymous accounts. Officials say the move was made to prepare for future European Union decisions.
Lithuania is serious about regulating cryptocurrencies. In light of the growing number of crypto-asset service providers in Europe, current global challenges, and the increased risk of money laundering and terrorism financing associated with virtual currencies, the European Union’s institutions are being urged to speed up the process of regulating cryptocurrencies.
Lithuania Is Considering Banning Non-Custodial Cryptocurrency Wallets
Lithuania is beefing up its control of cryptocurrencies in an effort to thwart money laundering and alleged Russian elite efforts to evade financial sanctions. In an effort to combat money laundering and other criminal activities, Lithuania’s Finance Ministry outlawed anonymous wallets and imposed controls on crypto exchanges on Thursday.
The proposed modifications to the current law, if implemented by the Lithuanian legislature, will tighten the standards for user identification and prevent anonymous accounts. Officials say the move was made to prepare for future European Union decisions. The bill proposes, among other things, tightening know-your-customer (KYC) regulations for bitcoin exchanges and requiring exchange managers to be permanent Lithuanian residents.
Increasing The Bite Of Crypto Regulation
The names of bitcoin exchange operators will be made public by the Registrar of Legal Entities. Furthermore, the plan emphasizes the strict rules in light of the crypto industry’s rapid growth and specific geopolitical problems. Given international regulatory trends and the geopolitical environment in the region, where many Western nations have imposed financial and other sanctions on the Russian Federation and Belarus, more sophisticated supervision of crypto-service providers is also required.
Exchange operators would also be subjected to more obligations under the proposed legislation. They will be required to register as a corporate entity with a minimum nominal capital of 125,000 euros beginning January 1 of the following year. The number of crypto businesses in Lithuania has increased rapidly as a result of the tightening of restrictions in its neighboring country, Estonia.
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Source: https://www.thecoinrepublic.com/2022/06/12/lithuania-will-outlaw-anonymous-accounts-as-the-government-considers-tighter-crypto-regulations/