Lithuania Launches New Regulation for Virtual Asset Service Providers
Lithuania, a small European country located in the Baltic region, has recently implemented a new regulation for Virtual Asset Service Providers (VASPs). The new regulation is expected to have a significant impact on the cryptocurrency market, as it aims to ensure that VASPs operating in Lithuania meet certain standards and adhere to specific rules and regulations.
The regulation was launched in early February 2023 and includes the creation of a Register for VASPs. This register serves as a database of all VASPs operating in Lithuania and is intended to increase transparency and accountability in the sector. At present, approximately 260 companies have been added to the register.
According to fintech and crypto consultancy Gofaizen & Sherle, the majority of VASPs operating in Lithuania are expected to be added to the register in the near future. The consultancy believes that this will lead to an increased level of oversight and regulation, as well as a higher level of trust and confidence in the cryptocurrency market.
The new regulation requires all VASPs to comply with certain standards and rules, such as customer due diligence, risk assessment, and transaction monitoring. In addition, VASPs must have adequate measures in place to prevent money laundering and terrorist financing. Failure to comply with these requirements can result in penalties and fines.
The Lithuanian government hopes that the new regulation will attract more cryptocurrency businesses to the country, as it provides a clear and transparent framework for operating in the sector. The government also hopes that the regulation will help to promote innovation and investment in the cryptocurrency market, while also protecting consumers and investors from potential risks.
The impact of this new regulation is yet to be seen, but it is clear that Lithuania is taking a proactive approach to regulating the cryptocurrency market. With the launch of the Register for VASPs, the country is setting a new standard for transparency and accountability in the sector. It will be interesting to see how other countries respond to this approach and whether similar regulations will be implemented in other parts of the world.
Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.