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Central Bank Of Lithuania Starts Communicating With Government Regulators, Commercial Banks and Crypto Traders Regarding Cryptocurrencies

Apr 16, 2018 Posted /  1074 Views

Central Bank Of Lithuania Starts Communicating With Government Regulators, Commercial Banks and Crypto Traders Regarding Cryptocurrencies

According to The Baltic Times, a local news publishing Bank of Lithuania has reportedly begun looking into cryptocurrencies, initiating a dialogue between commercial banks, but government regulators and crypto traders.

As per Jekaterina Govina, the fintech strategy coordinator at the Bank of Lithuania, the bank had welcomed delegates from the Financial Ministry, the Financial Crime Investigation Service, the sector of banking and the Initial Coin Offering sector to a current crypto roundtable.

Govina takes a note, that except the threats related to digital currencies, blind denial, hesitance to comprehend and to work with the digital currency world leads to no place, he proceeded:

"It's necessary that banks speak to those who have carried out an ICO or those who convert cryptocurrencies into conventional money. A dialog has been established and it remains to be seen where it will lead us.”

Central Bank Of Lithuania issued a document the previous year specifying its situation with ICOs and digital currencies. In the document they expressed that financial market participants (FMP) should isolate their financial services from those related to virtual money. It additionally expressed that FMP should give financial services to clients who are engrossed in dealing with the threats of money laundering and terrorism financing while giving budgetary assistance to clients who are dealing in crypto.

As indicated by The Baltic Times, in spite of the fact that Lithuania's central bank requires a separation between traditional financial services and activities related to digital currency, the bank has decided to issue licenses efficiently and rapidly, especially for ICOs and in addition acknowledge license applications in English, as its objective to become hub of European fintech.

Purportedly, one issue for crypto-related business in Lithuania is the trouble of working with banks. As indicated by a board member at Blockchain Center Vilnius, Vytautas Kaseta:

"Business banks don't comprehend the idea of the crypto-business and the plan of action. Along these lines, they see it as a high-chance business and require extra evidence of the cause of cash and venture, and regularly decline to open records for organizations."

Accordingly, the Lithuanian Bank Association (LBA) said that while a dialogue is important, the potential for crypto to assume a part in unlawful activities implies that there is a need for confirmation of a customer's wellspring of funds. They further added:

“We are interested in speaking to everyone to better understand each other's business models, but consumer protection, money laundering and terrorist financing prevention is a priority that must be ensured. We understand from the meeting that some of cryptocurrency market participants cannot say where the money comes from. This is a serious problem, and they didn't realize it was a problem.”

A year ago, in November, the ministers of finance in Lithuania, Estonia, and Latvia signed a Memorandum of Understanding for fintech participation, including supporting Blockchain development all over the Baltics.

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Tags: Central Bank Of Lithuania Government Regulators Commercial Bank Cryptocurrencies Bank of Lithuania

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