Lithuania will introduce mandatory identification of crypto-traders when concluding transactions over € 1000
The Lithuanian Cabinet of Ministers this week approved amendments to the law on combating money laundering and terrorist financing, prepared by the Ministry of Finance, to regulate the activities of cryptocurrency companies, local newspaper Delfi writes. The amendments were developed in accordance with the Directive of the European Union “on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing”.
In accordance with the new rules, increased requirements related to accompanying reporting will be imposed on all transactions over € 1,000. Cryptocurrency exchanges and other companies using similar commercial models will have to collect identification information about participants in transactions. Large transactions worth € 15,000 will also require a notification to be sent to the Financial Crime Service.
At the same time, only companies registered in a specialized Registry Center will be able to conduct cryptocurrency exchange transactions. It is noted that the new requirements will apply not only to operations to convert fiat into cryptocurrencies and vice versa, but also when exchanging cryptocurrencies among themselves..
It is also planned to introduce additional requirements for organizers of initial coin offerings – in this case, the minimum threshold will be € 3,000.
According to Delfi, currently, cryptocurrency exchanges and other persons organizing exchange operations operate outside the country’s legal field..
On June 21, recommendations for regulating the activities of cryptocurrency companies will be published by the Financial Action Task Force on Money Laundering (FATF). FATF member countries are expected to be asked to establish requirements similar to those approved by Lithuanian parliamentarians.