CASP license
We continue to work with the client, a virtual asset service provider (VASP), on a project to obtain approval as a cryptoasset service provider (CASP).
As part of the project, the we developed due diligence on the client. Subsequently, the we have been preparing a framework plan for cooperation on the project and analyzed the legal requirements for providing services of exchanging cryptoassets for cash or other cryptocurrency, as well as services of storing and administering clients’ cryptoassets and transferring cryptoassets.
The project is highly formalized, the proposal requires the submission of extensive documentation describing in detail the adopted service provision solutions and the security measures put in place. The complexity of the subject matter of the planned activity and the model of service provision requires the involvement of specialists in the operation of blockchain technology, distributed registry and information systems security.
The project required the preparation of an application meeting the requirements of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on crypto-asset markets and amending Regulations (EU) No. 1093/2010 and (EU) No. 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937. We prepared the application and documentation for the client, in particular with regard to the Procedure for Separation of Crypto-Actives and Customer Funds, the Procedure for Storage and Administration of Crypto-Actives, and the Procedure for Monitoring of Prudential Safeguards Adopted.
The project requires the preparation of extensive documentation due to the preparation of documentation that will furthermore meet the requirements of Regulation (EU) 2022/2554 of the European Parliament and of the Council of December 14, 2022 on the operational digital resilience of the financial sector and amending Regulations (EC) No. 1060/2009, (EU) No. 648/2012, (EU) No. 600/2014, (EU) No. 909/2014 and (EU) 2016/1011.
Ongoing project – completion of the project requires the national legislature to pass a national law.
See also:
We are advising a Lithuanian-licensed Electronic Money Institution, on the design and full regulatory implementation of its euro denominated Electronic Money Token (EURM) in compliance with EU Markets in Crypto Assets Regulation (MiCA).
We advised a polish comapny on obtaining Bank of Lithuania approval for the acquisition of 100% of the shares in a licensed Electronic Money Institution (EMI). Our work focused on the preparation of a comprehensive change of control application package, including ultimate beneficial ownership, financial standing, business plan impact, source of funds, and fit and proper assessments for management and key function holders. We also coordinated all regulator Q&A and ensured the submission met the highest supervisory standards.