According to Minister of Finance Gintarė Skaistė, this package of laws improves the conditions for financial technology (Fintech) companies operating in Lithuania by increasing their competitiveness, and allowing to facilitate access to alternative finance and to attract more investment for small and medium-sized businesses.
“Crowdfunding is an important element of the Lithuanian Fintech sector. It contributes to the financing of small and medium-sized businesses and may often be an alternative to the services offered by banks. So far, at European level, we were distinctive for crowdfunding platforms operating in accordance with national law present only with very few countries. In Lithuania we have a formed market, good starting positions to expand our activities to other EU countries, thus the applied unified Union system will allow the Lithuanian Fintech companies to successfully operate and acquire positions in Europe. The development of the Lithuanian Fintech sector and its opportunities is a national priority, therefore, we seek to maintain the leading position in the region", noted the Minister of Finance.
According to the Minister, following the adoption of the package of proposals prepared by the Ministry of Finance in the Seimas today, Fintech market participants will be able to re-license under the preferential process and successfully operate in the European markets. The package also includes the amendments to the Prevention of Money Laundering − simplified identification process when low risk is identified. This will strengthen the competitiveness of the Lithuanian Fintech sector in the EU market.
Moreover, the package will stimulate the growth of financial markets, which has an impact on economic development. In addition to crowdfunding platforms, the package also includes financial brokerage firms – intended regulation tailored to the nature of their business and the risks they take, which enables the growth of the investment services market. The new rules will allow better risk management and avoid disproportionate burdens on brokerage firms, strike a balance between the safety and reliability of firms and avoid excessive costs that could undermine their viability.
The package of amendments to the Law on Markets in Financial Instruments adopted by the Seimas transposes 4 European Union directives and implements 5 EU regulations.
We would like to point out that 10 crowdfunding platform operators were active in Lithuania in the first half of 2021, 679 projects with a value of EUR 52.6 million were funded and over 191 thousand financing transactions were concluded. The number of projects funded through crowdfunding platforms has doubled since 2017.
9 financial brokerage firms operate in Lithuania and their fiduciary assets totalled over EUR 1.3 billion at 31 December 2020.
119 members of the Seimas voted for the package, where 115 votes in favour and 4 abstentions.
