• Sun, 24 Mar 2019, 06:44 AM
  • All times are UTC
  • Edition:
Link copied

Bank of Lithuania updates stance on virtual assets and ICOs

Mon, 18 Feb 2019, 09:12 am UTC

The Bank of Lithuania has announced that it has updated its position on virtual assets and initial coin offering (ICO).

The updated stance aims to ensure a level playing field for all financial market participants and has taken into account current market developments and evolving regulatory regimes.

The central bank has substituted the term ‘virtual currency’ with ‘virtual asset’ and has clarified how and when virtual assets may be used for payment. It has also specified “when and how financial market participants may set up investment funds for investment in virtual assets.”

“[T]he updated position allows creating investment funds intended for professional investors that would invest in virtual assets,” it said. “Such funds are prevalent in other countries; having completed the notification process, their investment units may be marketed in Lithuania.”

That said, the bank clarified that financial market participants should not participate in activities or provide services associated with virtual assets. As such, financial market participants are prohibited from receiving payments in virtual assets, issuing virtual asset loans, or accepting virtual assets as collateral (except for cases where virtual asset tokens are considered to be securities).

The central bank, however, added that financial market participants may hold a small quantity of virtual assets for the purposes of using blockchain technology in their activities.

According to an FAQ published by the Bank of Lithuania:

“The position also states that an FMP [financial market participant] may provide services to customers engaged in activities associated with virtual assets. When providing services, an FMP must ensure that the requirements of legal acts implementing prevention of money laundering (ML) and terrorist financing (TF) are complied with and respective measures for the ML/TF risk management are taken.”

<Copyright © TokenPost. All Rights Reserved. >

The commenting service is available only after having logged in.
  • Bitcoin (BTC) $4,023.19 (-0.46%)
  • Ethereum (ETH) $137.45 (-0.70%)
  • XRP (XRP) $0.311100 (-0.55%)
  • Litecoin (LTC) $60.70 (-0.54%)
  • EOS (EOS) $3.65 (-1.12%)
  • Bitcoin (BTC) $4,023.19 (-0.46%)
Mar 22, 2019 (Friday)
SBI Group partners with U.S.-based semiconductor firm to manufacture crypto mining hardware
Square seeks engineers for new crypto-related initiatives
Cardano Foundation joins European Commission’s blockchain initiative INATBA as founding member
Blockchain smartphone maker Sirin Labs partners with MyEtherWallet
Alibaba, Aerospace Information partner to foster blockchain development
UPS partners with blockchain startup Inxeption for B2B e-commerce platform
Financial market veteran Rob Catalanello to lead crypto liquidity provider B2C2’s US expansions
Numerai secures $11M from Paradigm and Placeholder via token sale
Mar 21, 2019 (Thursday)
Former Prime Minister of Denmark joins blockchain firm Concordium as strategic advisor
North Korean dissident group CCD to issue blockchain-based post-liberation visas
Switzerland inches closer to cryptocurrency regulation
Huobi Global to launch token sale platform “Huobi Prime”
Asia Pacific Leaders Malaria Alliance’s M2030 partners with Dragonchain for blockchain-based services
CoinMarketCap launches of crypto indices on Nasdaq, Bloomberg, Reuters
seriesOne, Polymath partner to simplify security token issuance
Binance launches cash-to-crypto brokerage service in Australia
IoT startup Filament joins Enterprise Ethereum Alliance
Mar 20, 2019 (Wednesday)
Wirex launches crypto-friendly business accounts
Ground X to launch public testnet of blockchain platform 'Klaytn’ on March 29
Seoul Medical Center, Korean Ministry of Science and ICT collaborate on blockchain project
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.