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Lithuania continues to be among the best jurisdictions for cryptocurrency projects, mostly because of the straightforward client onboarding process, even for non-residents of the EU.
Everyone would agree that cryptocurrencies are becoming increasingly mainstream, and for good reason. Not only does the underlying technology behind these digital assets, blockchain, have all kinds of different utilities and use cases, but the amount of retail and institutional interest has absolutely skyrocketed with big names like Samsung, JPMorgan, Walmart, Emirates, and even entire countries like El Salvador adopting more a progressive and accepting approach as of late.
To that end, Gofaizen & Sherle, a legal and business consultancy for digital asset-oriented businesses, investment funds, and financial organizations, recently released its first-year financial results. Ever since its inception in September 2021, the company has amassed a portfolio of countless projects for more than 400 clients from across the globe.
Regulations Tightening Despite Increasing Interest
Although there is certainly plenty of interest in emerging technologies like crypto, NFTs, blockchain, and the metaverse, the fact remains that many regulators from all over the world are still not entirely convinced of the potential that these new technologies possess. Still, there is a light at the end of the tunnel as Gofaizen has stated that they receive all of the necessary information from the appropriate regulators and are readily able to work alongside the new rules, specifically in Lithuania.
With Gofaizen & Sherle, customers can therefore seamlessly solve any and all business-oriented issues but perhaps, more importantly, the users will never have to face any legal problems either. This is crucial as even though there are numerous businesses that deal with digital assets these days, not all of them comply with regulations as well as AML and KYC procedures.
As such, emerging regulations in Lithuania mean new rules for businesses. Gofaizen & Sherle will thus receive instructions as aforementioned from the FCIS in October of this year, with the initial requirements coming in December. This may seem like a short timeframe, but the company is doing everything it can to prepare as there is ample time to do so.
How will This Differ from Estonia?
Regulation for the crypto market is strengthening all over the world. The goal is obvious – to make the market safer by a low risk of money laundering and financing terrorism, as well as to increase customer protection. But the deal is how the regulation goes and what impact it takes on lawful companies.
The Estonian regulators began this process by conducting a survey to categorize market participants. The Estonian Finance Intelligence Unit (RAB) conducted the first survey on digital currencies concerning services and the market participants associated with them. There is also an examination of the dangers associated with money laundering and terrorist financing. The survey presents schemes and practices for the illegal use of virtual currencies, with the immediate cause being that the recent rapid growth in the use of virtual currencies and the amount of service providers has increased the risks of criminality in the field. The information received by the RAB and the information gathered for the survey indicates that virtual currencies are also used to conceal criminal income in Estonia. There was also a second survey that discussed the risks related to virtual service providers in Estonia.
Also, the regulators soon began to scrutinize companies with the most robust data which had a direct impact on the market, confidence, and free enterprise. As a result, we can see a decreasing number of companies – nearly 175 out of 4000 licenses left.
Gofaizen & Sherle believes that Lithuania will not repeat this mistake. If the market sees the results of the survey, it is a good practice. Second, the FCIS lacks the resources to scrutinize every company and operation. Moreover, the Lithuanian economy is bigger. So the impact on the crypto market will not be as strong.
To operate in Lithuania, crypto companies must have offices, employees, and operations there. This is something that nearly everyone would be able to deal with quite easily. Furthermore, Lithuania continues to be among the best jurisdictions for cryptocurrency projects, mostly because of the straightforward client onboarding process, even for non-residents of the EU. In Estonia however, in most cases, non-EU residents must have a qualified digital signature to create an account. As a result, the advantages of Lithuania are obvious by comparison. Therefore, the crypto market would remain robust and significant here.
What Are Gofaizen & Sherle’s Past Accomplishments and Future Goals?
The Gofaizen & Sherle team, which began with primarily legal and business professionals, has more than doubled in the last year. It now consists of highly qualified experts who can help with all aspects of starting a new business, including legal and financial advice, business analysis, and product development. It offers customers a comprehensive approach to their needs. The statistics speak for themselves as clients of Gofaizen & Sherle have acquired more than 200 financial licenses in European, American, and Asian jurisdictions and depend on its assistance in expanding their businesses into new markets.
Mark Gofaizen, the Senior Partner at Gofazien & Sherle, says that with each passing day, the burgeoning and fast-paced world of digital financial services is confronted with a challenging, slow traditional approach to establishing companies and dealing with license nuances in new markets such as Germany, Estonia, Lithuania, and many others. He further stated that the main mission for him and his team would hence be to assist clients in addressing these legal nuances and ensuring dynamic growth in new markets.
Additionally, the company intends to consistently increase its presence in these new markets and will develop useful fintech products to help various businesses run more smoothly and efficiently. These products and services will include, for example, acquiring, accounting, and other quick and easy crypto business tools. With such a vast array of useful features, it is no wonder why so many rely on Gofaizen & Sherle and the sky may just be the limit for this company and what it can accomplish.
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