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The small Baltic economy is near the top of the global table for ICOs and cryptocurrency startups.28 June 2018
Last year, Lithuanian crypto-financiers raised around half a billion euros from ICOs and blockchain-based businesses. The influx of cryptocurrency is one factor in the country’s healthy economic growth, Politico writes: GDP growth is expected to reach 3.1 percent this year, well over the EU average of 2.3 percent.
Not only is the regulatory burden low, but Lithuania has upgraded its internet network to support data-heavy operations, making it attractive to currency miners.
Crypto’s low-regulatory environment is also raising concerns international criminals could use it to funnel ill-gotten gains into Lithuania, which like neighbor Latvia could be vulnerable to penetration by Russian entities.
“[We don’t want] Russian capital infiltrating into the local economy,” Bank of Lithuania board member Marius Jurgilas said. “We are constantly reminding everyone about the risks.”
Earlier this month, Lithuania issued ICO guidelines to put the trade on a firmer regulatory footing.
Although the guidelines specify certain regulatory and tax obligations for ICOs and cryptocurrencies, they are more open compared to the position of other jurisdictions, News BTC says.
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