On 22 August 2024, Lietuvos bankas published its expectations regarding prospective crypto-asset service providers.
The letter by Lietuvos bankas highlights some of the key requirements of the MiCA Regulation, best practices and expectations that crypto-asset service providers should take into account in order to be adequately prepared for the above activities.
Lietuvos bankas emphasises that, once the crypto-asset sector becomes regulated, the risks associated with its activities (money laundering and terrorist financing, fraud, other criminal acts, etc.) will remain significant, and it is therefore important for applicants to be well prepared in advance to manage them properly.
Lietuvos bankas will strive to ensure that only mature service providers with adequate knowledge of risk management in this business field enter the crypto-asset market. In deciding whether to grant authorisation, particular attention will be paid to the applicant’s shareholder structure and good repute, the financial soundness of the shareholders, the transparency of the origin of the funds, the soundness of the financing structure, the good repute and qualifications of the managers, and the willingness of the managers to ensure sustainable, secure and sound operations, including effective internal controls and risk management.
It will also be assessed whether the applicant is a sham entity with no real activity and no intention of carrying out activities, which has outsourced most of its key operational and control functions to third parties and which will not be able to adequately ensure the control of these processes.
The notice and the DEAR CEO letter of expectations are published on the website of Lietuvos bankas.