Lithuania Launches Investigations Into High Cryptocurrency Turnover
The country had earlier pledged to provide a very friendly environment for cryptocurrency trading. The government raised suspicions over the amount transacted within a small population.
ICOs Cashflow in Lithuania Raises Eyebrows
Policymakers in Lithuania have raised concerns over dangers posed and advantages of ICOs in the nation. According to a press statement, government officials held a seminar to discuss the topic. At the moment, investigating authorities are looking into crypto trading within the country.
The FCIS held the meeting that included officials from ministries, the country’s main bank and the prosecutor. It emerged that the country was handling high turnover in cryptos to fiat.
According to Antonio Mikulsk, the boss of FCIS, authorities are worried over the rate of converting them into fiat which he described as quickly.
Earlier, the country had promised to set up a formal regulation structure for the crypto industry. Authorities also stated that the industry comes with a number of benefits that cannot be ignored.
At the moment, the $576 million turnover in ICOs over the past one month means that we need to have strong laws to govern the sector.
On the other hand FCIS deputy head Mindaugas Petrauskas noted that the country was a leader in ICOs with a growth of a staggering 305% compared to other regions of the world.
The Role Of Banking Sector In Cryptocurrencies
The investigating agency is also looking at the role played by banks in the crypto sector. The banks have been vital in processing cryptos from fiat. The country’s financial laws indicate that any transaction of more than $92,200 must be scrutinized.
In the probe, a number of regional financial facilities have been brought on board. The banks include SEB Bank, Swedbank and Danske Bank. Comparing 2017 and 2018, the cumulative transactions recorded by exchange was at $762 million.
The investigating agency said that automatically, such transaction raises suspicions and they should be investigated. Petrauskas pointed out that the transaction involved almost 500 people and 100 business ventures.
Traditionally, the crypto industry has been accused of aiding in criminal activities. A majority of authorities globally are concerned that crypto can be used in money laundering funding of activities like terrorism.