The central theses
- Lithuanian Ministry of Finance plans to ban non-custodial crypto wallets.
- The brand new regulation additionally imposes strict guidelines on crypto service suppliers working throughout the nation.
- The announcement comes after the European Union’s latest choice to push anti-anonymity guidelines within the crypto house.
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The Lithuanian Ministry of Finance has banned nameless wallets and imposed strict laws on crypto exchanges to fight cash laundering, terrorist financing and sanctions evasion. The ministry stated it took the step in anticipation of future selections by the European Union.
Lithuania bans self-hosted wallets
The Lithuanian authorities desires to go a brand new regulation to tighten crypto laws and ban nameless wallets.
In keeping with the Ministry of Finance, the federal government on Wednesday accepted amendments to the “Act on the Prevention of Cash Laundering and Terrorist Financing” aimed toward growing the transparency of the cryptocurrency sector whereas guaranteeing its “sustainable development”. The modifications have to be accepted by the Seimas, Lithuania’s legislature, earlier than they arrive into impact.
Amongst different issues, the regulation goals to ban the creation of “nameless accounts”, tighten know-your-customer (KYC) laws for crypto exchanges, and require executives of Lithuania-based exchanges to be everlasting residents of Lithuania. The Registrar of Authorized Entities will even publish the names of crypto alternate operators.
The Ministry of Finance justified these measures with the combat towards cash laundering, terrorist financing, sanctions circumvention from Russia and Belarus in addition to reputational dangers for Lithuanian market individuals and the Lithuanian state.
Finance Minister Gintarė Skaistė additionally acknowledged that the federal government is “taking proactive steps to strengthen regulation on the nationwide stage in preparation for subsequent selections [European Union] even.”
The European Parliament not too long ago voted to push ahead anti-anonymity guidelines for the cryptocurrency business, which might make transactions between non-custodial wallets and crypto service suppliers far harder. The laws has drawn criticism from many cryptocurrency advocates, together with Coinbase CEO Brian Armstrong.
The variety of crypto firms has soared in Lithuania following a tightening of restrictions in neighboring Estonia. Whereas solely 8 crypto firms have been based in 2020, the Ministry of Finance states that greater than 220 new firms have been based since then.
Disclosure: On the time of writing, the writer of this text owned ETH and a number of other different cryptocurrencies.
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