Lithuania FCIS urges adoption of stricter rules in virtual currency industry

The Financial Crime Investigation Service (FCIS) of Lithuania recently presented the country’s authority figures with the advantages and disadvantages of inital coin offerings (ICOs) in a seminar named “Development of the Financial Technologies Sector, Opportunities, and Challenges”. 

According to a press release by the FCIS, the meeting saw representatives from the Bank of Lithuania, the Department of Finance, the Department of Home Affairs, the Ministry of Economies, the Prosecutor General’s Office, the State Tax Inspectorate and the State Security Department attend the meeting.

The director of the FCIS Antonio Mikulsk spoke on the matter of market risks in  cryptocurrencies

“The Financial Crime Investigation Service is advocating for innovation and for innovative technologies, but they should be subject to certain regulatory and control mechanisms. Virtual currency has huge cash flows, but worries about converting them into dollars and euros as quickly as possible, leaving virtual currencies as quickly as possible.”

The meeting was held in order to review the risks, threats, and benefits associated with ICOs. FCIS Deputy Director Mindaugas Petrauskas spoke to the authority figures of how the problems could impact the country’s economy:

“There are four biggest potential risks around the world: anonymity, cross-border nature of transactions, service segmentation and decentralized system.”

However, Lithuania is optimistic about the financial technology opportunities available. Petrauskas also commented on the positive possibilities of ICOs in the country:

“According to ICO figures, Lithuania is one of the world leaders and shows the highest, 305 percent, growth from all over the world.”

Owing to the benefits, the politicians and state representatives were urged to consider adopting stricter regulations in order to prevent cybercrimes.

In April of this year, Lithuania stood as one of the 22 countries in Europe to have signed the declaration which formed the European Blockchain Partnership. The coalition was described as a “vehicle for cooperation amongst Member States to exchange experience and expertise in technical and regulatory fields and prepare for the launch of EU-wide [Blockchain] applications across the Digital Single Market for the benefit of the public and private sectors”.

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