Bank of Lithuania releases updates on cryptocurrency legislation
A couple of changes have been made by the board members of Bank of Lithuania regarding cryptocurrency and blockchain companies. The shift will affect investors, institutions, and future initial coin offerings (ICOs).
First — they have decided to ditch the term ‘virtual currency’ and instead go with ‘virtual asset’ going forward. An attempt to keep the idea of money separate from virtual asset investing.
Second — and maybe the most significant advancement: investors and institutions alike will now be able to start funds intended for virtual asset investment. Therefore, Lithuania now joined many countries, which introduced a regulatory framework for these types of funds — a policy change, which will bring more opportunities to Lithuanian investors.
However, the newly updated policy still largely retains its original stance: the financial markets and virtual assets should be kept separate. Payments to those in financial markets still must be made in fiat. Loans cannot be distributed in virtual assets, and the same goes for collateral payments.
While it’s clear that Lithuania is taking small steps forward in the cryptocurrency space, hesitancy to move quickly is still evident. To read more about the new legislation, go here.