Central Bank of Lithuania updates position on cryptocurrencies
The entity published an announcement in which it changes its position regarding digital assets and the Initial Offers of Currency (ICO)
In the update, the financial entity replaced the term “virtual currencies” for cryptocurrencies by the term “virtual assets“. It also defines how and when they can be used for payments, as well as when and how market participants can convert investment funds into cryptographic assets.
In the same way, the document reveals that the financial market must still separate financial activities from those associated with cryptocurrencies, while not providing services associated with them.
Market participants cannot receive payments with virtual assets, since they must be made in fiduciary currencies. Nevertheless, they can count on third-party services. They are also prohibited from accepting cryptographic currencies with reimbursement with or without interest. Neither can they issue loans on said assets or accept them as collateral.
Lithuania is committed to innovation and therefore the country’s regulators studied the threats and possible benefits of ICOs for its economy. The news goes hand in hand with the recent announcement of the cryptocurrency wallet service Blockchain.com, which opened a new branch in Vilnius, Lithuania.
L.Sáenz
Source: Coincrispy
