Gate.io’s Lithuania-based arm, Gate Global UAB, has been granted a license to offer virtual asset services in Lithuania, according to a press release on Tuesday.
The new authorisation covers many business areas including crypto-asset trading, custodian service, digital asset wallet, and portfolio management to customers under the supervision of regulatory agencies in Lithuania.
Obtaining this Lithuanian crypto licence is a significant milestone for Gate.io and facilitates its registration in other European countries, expanding its scope of service to reach more users worldwide.
Having completed its registration as a Virtual Assets Service Provider (VASP), the approval enables Gate.io to provide both cryptocurrency exchange and wallet services. It also puts the firm on a firmer regulatory footing while offering its crypto exchange, blockchain, DeFi platform and more in compliance with local anti-money laundering and counter-terrorist financing (AML/CFT) laws.
Among other benefits, Gate.io will be able to establish relationships with traditional financial institutions like banks, which enables its customers to convert their cryptocurrency to fiat money or vice versa on the platform.
Lithuania is one of the few member states of the European Union that offers transparent and cost-effective virtual currency authorization, with clear and transparent regulations in force since 2020.
Gate.io Group Founder and CEO Dr. Lin Han said, “Within every country we operate in, we seek to meet and exceed regulatory safeguards. Providing users with a reliable and safe experience and working with governments to meet their expectations will always be our primary goals when entering new regions.”
“Lithuania has been extremely proactive in creating a healthy environment for digital asset companies. Their compliance and controls align with our commitments to reliable, safe, and compliant operations,” he added.
As it is looking to expand globally, Gate.io had secured in August a license to offer crypto custodial services in Hong Kong. It also launched operations in Malta after its technology unit received the regulators’ nod as a virtual financial assets service provider, allowing it to operate an exchange and offer custodian services in the country.
The move also comes in anticipation of an EU-wide regulatory framework that will grant passporting rights for crypto firm working across the continent. Set to go into effect in 2024, the proposal offers a bespoke legislative regime for markets in crypto-assets (dubbed ‘MiCA’) and relevant service providers not covered elsewhere in the EU financial services regime.
