Launching a FinTech Business: Why Lithuania is Worth Considering

Lithuania is nicknamed the European FinTech capital. This jurisdiction is perfect for launching FinTech businesses thanks to the country’s policies and a friendly regulatory framework for the growth of financial technologies.

This article is about why most successful businessmen choose Lithuania for their FinTech projects, and about the advantages of this jurisdiction.

Lithuania — a great solution for launching a FinTech business

Lithuania quickly adapts to FinTech market changes. The Central Bank of Lithuania supports the development of financial technologies, including lending to neobanks and payment service providers.

Having focused on promoting the FinTech industry, the Bank simplified its regulations. It is fairly easy and quick to obtain a banking license or a EU payment service provider license in Lithuania. There is a reason why the British neobank Revolut currently operates under a Lithuanian banking license.

Basic benefits of launching a FinTech business in Lithuania

We have identified key benefits of launching FinTech projects in Lithuania:

1. Licensing of an Electronic Money Institution (EMI)

It takes 3+ months to get an EMI license in Lithuania while other jurisdictions issue the same within 6 months to 1 year. Starting July 2018 the required documents are submitted online. EMI license holders in Lithuania are provided access to SEPA via the CENTROlink system. In other countries this capability is available for traditional banks only.

2. Crowdfunding Law

In 2016 Lithuania adopted the Crowdfunding Law, allowing the creation of loan- and share-based crowdfunding platforms. The law does not apply to the crowdfunding based on donations and remunerations.

Crowdfunding platforms can be operated by entities incorporated and located in Lithuania.

3. Regulatory Sandboxes

In order to facilitate financial market innovations, Lithuania created a special environment – regulatory sandboxes in 2018. FinTech startups can test their new products within such sandboxes.

Lithuania managed to organize both the IT infrastructure and the banks. The cost of living, which is lower than in other European countries, is another appeal for the startups. Thanks to the above benefits, FinTech became the signature offering of Lithuania. The government is interested in continuously increasing the number of FinTech companies.

SBSB International Law Firm helps launch FinTech projects not only in Lithuania but in other jurisdictions as well. SBSB’s approach involves comprehensive servicing of FinTech projects on a turnkey basis, including jurisdiction selection for company incorporation, monthly legal support, software development for banks and payment systems (e-money and PSP), and the full-fledged project launching.

By the way, we have a Telegram chat for free online consultations with our FinTech lawyers.