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No, Lithuania will not ban non-custodial wallets. Stop spreading false information.

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Yesterday I saw post by u/Stealthex_io with 1.2k upvotes and it was filled with misleading info. Furthermore I saw number of crypto "news" websites echoing the same thing.

I am native Lithuanian speaker so i decided to dig deeper and read the ACTUAL proposal instead of spreading bs.

The proposal in lithuanian reads as follows:

„211. Virtualiųjų valiutų keityklos operatoriui ir depozitinių virtualiųjų valiutų piniginių operatoriui draudžiama atidaryti anonimines sąskaitas ar sąskaitas akivaizdžiai fiktyviais vardais, taip pat atidaryti sąskaitas ar kitaip pradėti dalykinius santykius nepareikalavus kliento tapatybę patvirtinančių duomenų arba kilus pagrįstam įtarimui, kad šiuose dokumentuose įrašyti duomenys yra netikri ar suklastoti.“

The proposal translated with google:

„211. The virtual currency exchange operator and the depository virtual currency wallet operator are prohibited from opening anonymous accounts or accounts under manifestly fictitious names, or from opening or otherwise entering into business relationships without requesting customer identification data or if there is a reasonable suspicion that the data contained in these documents is inaccurate.

The key point to know is that the depository virtual currency wallet operator (depozitinių virtualiųjų valiutų piniginių operatorius) has a definition which is a as follow in Lithuanian:

Depozitinių virtualiųjų valiutų piniginių operatorius – depozitinių virtualiųjų valiutų piniginių valdymo klientų vardu paslaugas teikiantis Lietuvos Respublikoje įsteigtas juridinis asmuo arba Lietuvos Respublikoje įsteigtas Europos Sąjungos valstybės narės ar užsienio valstybės juridinio asmens filialas.

The definition translated with google:

Depository virtual currency wallet operator - a legal (juridical) entity established in the Republic of Lithuania or a branch of a legal (juridical) entity of a Member State of the European Union or a foreign state established in the Republic of Lithuania providing services for the management of deposit virtual currencies.

The key point here is the word juridical which mean a separate legal entity and not an actual person. If you are a private person with Ledger wallet YOU ARE NOT a "depository virtual currency wallet operator". So this whole legislation is actual aimed to the crypto companies and exchanges which will have to be more diligent when verifying user information. You will not be able to have an anonymous CEX account even when dealing with small amounts.

To be fair you already had to verify with CEX if you wanted to buy or sell sums of >1000eur or withdraw money, so for everyday user this doesn't change things much. I decided to write this up because IMO the mis-information does much more harm than good.

TL,DR: Ledgers will not be banned, stop panicking. Also stop spreading false information.


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