The Lithuanian Ministry of Finance has published new guidelines for crypto-currencies and ICOs.
The on 11. June published document represents a multi-dimensional “understanding” of the securities laws and clarifies the conditions under which they apply for the ICO-Tokens. The Directive is divided into four areas: regulatory, taxation, accounting and anti-money laundering / combating the financing of terrorism (AML / CFT).
Finance Minister Vilius Šapoka, said:
“We are of the opinion that some areas of the industry should be regulated, such as ICO’s. Lithuania has already advanced regulations. We are one of the first countries in Europe, a comprehensive guide to created a legal framework for ICO projects in the areas of regulation, taxes and accounting.“
According to the Lithuanian government, these guidelines are a further step in the direction of improved safety and efficiency in the management, tax collection, accounting, and other requirements, as well as better cooperation between various partners.
“We understand that the crypto will remain in the economy here. For this reason, we encourage and invite the participants of this industry to innovate in Lithuania. Finally, we do not mean for no reason #Litechnia.“
The four areas of policy
The organization of ICOs is not governed by specific legislation, but taking into account various ICO-models and of different features of Tokens, this activity may be subject to, in some cases, the requirements of the legislation of the Republic of Lithuania and the supervision of the Bank of Lithuania.
In relation to the corporate income tax and the income tax, the virtual currency is classified according to the economic importance of the transactions as a means of payment. For the purposes of VAT, the virtual currency is the same currency as euros, dollars, etc. For the purposes of other taxes, the other type of instrument is, for example, Certain types of tokens can also be used as a virtual currency to be detected.
If ICO-Promoter-expenses for the development of Blockchain-based functioning of the platform are not related to the receipt of a reasonably expected economic benefit from the additional management of this platform, according to ICO-Emission, be it as a cost in the profit and loss account. If such an economic Benefit is reasonably likely to be, as the ICO-Promoter has the opportunity to receive from the users of the well – established platform with an intermediary and other revenue that can be recognized in the cost of these expenses as a cost of acquisition for intangible assets.
The 5. Directive on money laundering was adopted on 19. April adopted. The Ministry of Finance of the Republic of Lithuania the Bank of Lithuania and the financial crime police prepare laundering, the Amendments to the law on anti-money and counter-terrorism in Lithuania. The first round of Amendments will focus on rules for operators of virtual exchanges and wallet services to be relevant, in order to increase the transparency and clarity of the regulation in connection with the stability and security of the financial market.