Lithuania aims to tighten crypto regulation and ban anonymous accounts

In its efforts to battle cash laundering dangers and the doable schemes of Russian elites circumventing monetary sanctions, the two.8-million nation of Lithuania is planning to tighten its scrutiny over crypto. 

Because the native Ministry of Finance announced on Wednesday, June 8, varied ministries of the Lithuanian authorities authorised authorized amendments to anti-money laundering (AML) and countering the financing of terrorism within the crypto sector. The amendments to the present regulation — ought to they later be authorised by the Seimas, Lithuania’s legislature — would stiffen the rules for person identification and prohibit nameless accounts.

The brand new laws would additionally tighten up calls for for change operators — from January 1, 2023, they are going to be obliged to register as a company physique with nominal capital amounting to at least 125,000 euros. The senior administration of such firms must be everlasting residents of Lithuania.

The announcement justifies the tightened laws with the accelerating progress of the crypto business and particular geopolitical dangers:

“Extra nuanced regulation of the suppliers of crypto-services can be necessary contemplating the worldwide regulatory tendencies and the geopolitical state of affairs within the area when many Western international locations impose monetary and different sanctions on Russian Federation and Belarus.”

In her official commentary, the Minister of Finance Gintarė Skaistė defined, that the steps on the nationwide stage are taken in accordance with the upcoming pan-European laws. The announcement underscores the swift rise of the crypto firms within the nation after a regulatory tightening in neighboring Estonia — there have been solely 8 new crypto firms in 2020, whereas 2021 noticed the looks of 188 new entities.

Associated: For the crypto industry, supporting sanctions is an opportunity to rebrand

Estonia introduced its replace on the AML act in September 2021. The up to date regulation effectively banned non-custodial software wallets in addition to decentralized finance merchandise. In April 2022, the European Parliament authorised an AML regulatory package deal, that could place severe disclosure requirements on transactions between non-custodial wallets and crypto exchanges within the European Union.

The Lithuanian Ministry of Finance didn’t instantly reply to Cointelegraph’s request for remark.