As one of active approaches to crypto trading investigation, Lithuanian authorities held a seminar under the topic of threats and expected advantages of Initial Coin Offerings (ICOs).
The Financial Crime Investigation Service (FCIS) including government ministries representatives, the central bank and the General Prosecutor took a charge of the meeting. It was a bold movement from crypto to fiat in Lithuania.
The head of the FCIS, Antonio Mikulsk, said that virtual currency brings a huge cash flow but it is difficult to neglect the fact that there are some concerns toward changes into dollars and euros from virtual currencies as fast as possible.
Lithuania assured to come up with a formalized regulatory environment for cryptocurrency and related products and create benefits from accepting a hands-on approach to the industry. Here and now authorities mentions that a high ICO turnover volume – €500 million (approximately $576 million) over the past eighteen months requires tougher anti-fraud mechanisms.
FCIS deputy director, Mindaugas Petrauskas, stated that Lithuania is one of the world leaders when it comes to ICO figures and shows the highest growth internationally with 305% rate. The FCIS is also governing banks’ role in processing high-volume crypto to fiat transactions drawn out of exchanges. It also publicized that any single transaction over €80,000 (around $92,200) must be investigated.
A lot of regional banks such as SEB Bank, Swedbank and Danske Bank are involved in the investigation. The total of crypto exchange transactions from 2017 to 2018 is at €661 million (around $762 million) at the time the data became public, Delfi notes.
Petrauskas stated that approximately €80,000 threshold, which involves around 500 individuals and 100 business entities which already are suspicious.
Author: Jieun Lee