In the first part, security token offerings in Lithuania were discussed, so as its legal qualification. This article is about security token offerings in Lithuania - qualified as a financial instrument.
Security token offerings in Lithuania - qualified as a financial instrument
Financial instruments regulation in Lithuania definition is contested. In order to qualify as a transferable security within Article 3 (52) of the Law on Markets in Financial Instruments, the token should qualify as:
- circulating in the capital market shares in companies and other securities equivalent to shares in companies, partnerships, and other entities, as well as depository receipts representing shares;
- circulating in the capital market bonds and other forms of non-equity securities, including depositary receipts in respect of non-equity securities;
- circulating in the capital market other securities conferring the right to acquire or transfer the transferable securities or underlying the cash-settlements determined having regard to the transferable securities, currencies or exchange rates, interest rates, yield of securities, stock exchange commodities, or other indices or instruments.
Where tokens qualify as transferable securities or other types of MIFID II (and also the Law on Markets in Financial Instruments) financial instruments, a full set of relevant EU and national financial rules, including but not limited to the Prospectus Regulation, the Law on Securities, the Law on Markets in Financial Instruments, the Law on Crowdfunding, the MAR, Central Securities Depositories Regulation, Law on Settlement Finality in Payment and Securities Settlement Systems, are likely to apply to their issuer, crowdfunding or other trading platforms and/or firms providing investment services/activities to those instruments.
Please be informed that from tree Baltic States, only in Estonia licenses for cryptocurrency are granted (services of exchanging a virtual currency against a fiat currency and virtual currency wallet service).