The Lithuanian authorities held a seminar examining the "threats and potential benefits" of the Initial Coins Offer (ICO) for the country's economy, a press release reported Wednesday, October 3, amid ongoing investigations into the crypto currency trading habits.
The Financial Crime Investigation Service (FCIS) holds meetings, including representatives from government ministries, the central bank, and the Attorney General. According to a press release, the meeting revealed that the Lithuanian process "big" turnover from crypto to fiat.
Antonio Mikulsk, head of the FCIS, said:
"Virtual currencies have large cash flows, but (there are) concerns about turning them into dollars and euros as quickly as possible, (and) leaving the virtual currency as quickly as possible."
Lithuania has promised to create a regulatory environment that is formalized for cryptocurrency and related products, noting the benefits derived from adopting a direct approach to industry.
Now, authorities note that the ICO turnover volume is high - € 500 million (around $ 576 million) over the past eighteen months - a call for a stronger anti-fraud mechanism.
"According to ICO figures, Lithuania is one of the world leaders and shows the highest growth, 305 percent, from all over the world," FCIS deputy director Mindaugas Petrauskas added, citing data from local consulting company Versli Lietuva.
FCIS simultaneously examined the role of banks in processing high volume crypto-fiat transactions resulting from the exchange, noting that every single transaction of more than € 80,000 (around $ 92,200) had to be investigated, the Lithuanian Delfi news outlet reported on October 5.
Various regional banks are involved in the investigation, including SEB Bank, Swedbank, and Danske Bank. The total number of crypto exchange transactions from 2017 to 2018 reached € 661 million (around $ 762 million) when data became public, notes Delfi.
"This amount has caused certain suspicions." Petrauskas said of the € 80,000 threshold, which involved about 500 individuals and 100 business entities.
