Digital assets have increased in both popularity and usage over the last couple of years. Whether it be cryptocurrencies, non-fungible tokens (NFTs), commodities, forex, indices or anything similar, the simple fact is that more people are becoming involved with these assets than ever before. Moreover, with the introduction of new technologies and concepts like blockchain, the metaverse, and Play-to-Earn (P2E), it does not look like this interest is going to die down anytime soon.
There is, hence, a clear need for regulators to work alongside companies that are actively involved with these digital assets. Gofaizen & Sherle, a legal and business consultancy designed for companies working with digital assets, has not only recognized the importance of working with regulators and complying with KYC and AML procedures in order to guarantee the safety of consumers, but it has also explained why Lithuania is in fact a superior option to Estonia.
Why have regulations increased?
When it comes to the abovementioned digital assets, in particular cryptocurrencies and NFTs, despite the obvious benefits that they have provided and continue to provide individuals and companies across the globe, there is a large portion that would unfortunately like nothing more than to steal the hard-earned funds and assets of others. These include the likes of hackers, money launderers, digital terrorists, and so on, and the main reason why so many have gotten away with these fraudulent activities is because the digital asset industry has not been properly regulated.
As such, regulators are clamping down on these digital assets which is why it is imperative for companies to work with and not against them going forward. According to Gofaizen & Sherle , they have received all of the relevant information from the proper regulators and are ready to work with the new rules, particularly in Lithuania.
Clients can thus solve any and all business-related issues with Gofaizen & Sherle, but maybe even more pertinently, users will never need to confront any legal issues. This is critical because, while there are many businesses dealing with virtual assets these days, a surprising number of them do not follow the appropriate regulatory processes. As a result, new regulations in Lithuania imply new rules for businesses. As previously stated, Gofaizen will receive instructions from the FCIS in October of this year, with the first official requirements following in December.
What makes Lithuania different from Estonia?
Companies that deal with digital assets, especially cryptocurrencies, must have offices, employees, and operations in Lithuania in order to work. Generally speaking, this will not be an issue for most legitimate organizations. Also, Lithuania is still one of the best places for cryptocurrency projects because it is easy to add clients, even if they don’t live there. All the processes can go online with digital copies of the documents. This is the point for many of our clients, Mihhail Sherle, Head of Legal Practice at Gofaizen & Sherle, says. On the other hand, in Estonia, you must first get a qualified digital signature before you can do business. He added that in some countries, for example in the Czech Republic, the first payment can be made only with a special account.
In the past, Estonian regulators carried out a survey to classify market participants. The Estonian Finance Intelligence Unit (RAB) performed an initial survey on digital currencies in relation to services and market participants. There is also a discussion of the risks of money laundering and terrorist financing. The survey presents strategies and procedures of unauthorized virtual currency use, with the immediate cause concerning the recent rapid growth in virtual currency use and the number of service providers, which has also increased the risks of criminality within this sector. Information gathered for the survey and given to the RAB shows that digital currencies are also often used by criminals in Estonia to hide their money. A second survey was additionally conducted to discuss the risks associated with virtual service providers in Estonia.
It was important to get these results for more knowledge and to raise confidence with the regulator. To make matters worse, the regulators quickly started scrutinizing companies with the most robust data. As a result we can see a decreasing number of crypto companies, only 175 from 4000 licenses still remain, Mihhail Sherle says.
With that in mind, Mihhail Sherle believes Lithuania will not make the same mistake. It is considered good practice if the market sees the survey results. Moreover, the Lithuanian economy is bigger, and the FCIS will not conduct a thorough examination of every company and operation. When both Lithuania and Estonia are compared side by side, the benefits of the former become increasingly apparent.
“We believe that every regulator has good intentions of implementing new rules. The point is to make the crypto market more safe and efficient for the economy. Our clients have strong compliance and are ready to help the regulators to prevent all the negative practice could occur. But we also believe that any rules should raise the confidence and provide free enterprise to ensure the economy will steadily develop”, Mihhail Sherle the Head Of Legal Practice Gofaizen & Sherle concluded.
What’s so special about Gofaizen & Sherle?
The Gofaizen & Sherle team has more than doubled in the last year, starting with mainly legal and business specialists. It is now made up of highly experienced professionals who can assist with all facets of launching a new business, such as financial and legal guidance, business analysis, and product development. Since its inception in September 2021, the company has also amassed a portfolio of over 400 clients from around the world.
Gofaizen & Sherle provides customers with a comprehensive solution to their needs. Their customers have also successfully obtained over 200 financial licenses in Asian, American and European jurisdictions and rely on its assistance in growing their businesses into emerging markets.
According to Mark Gofaizen, Senior Partner at Gofazien & Sherle, the booming and fast-paced realm of digital financial services is being faced with a difficult, slow conventional approach to establishing companies and trying to deal with license subtleties in new markets like Germany, Estonia, Lithuania, and numerous others every day.
He went on to say that the central purpose of Gofaizen & Sherle would be to help customers resolve these legal complexities while also guaranteeing dynamic expansion into new markets. Also, the company wants to keep growing its presence in these markets, so it will make new fintech products to help many businesses run more smoothly and efficiently. These products and services will also include tools for buying, keeping track of money, and doing other simple business tasks that are important for any company. Needless to say, Gofaizen is a name that should be on everyone’s radar going forward.
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
