South Korea-based Haru Invest , a digital asset management platform, has announced that its EU incorporated subsidiary has become an authorized Virtual Asset Service Provider (VASP). As a VASP authorized business, Haru Invest can now provide crypto exchange and wallet/custody service in Europe, from Lithuania, opening a pathway to becoming a fully-fledged cryptocurrency exchange with a fiat gateway.

This VASP authorization officially allows the company to support the EUR currency directly, enabling European Union countries to buy and trade between crypto and Euro seamlessly. As a part of the VASP registration process, Haru Invest has undergone a thorough evaluation of its compliance and risk management procedures, as well as due diligence on its corporate governance and business operations. Lithuania has emerged as an important platform in the European crypto industry, known for its crypto-friendly regulatory environment, and is home to growing blockchain businesses.

Evaluated as a fintech hub in EU with leading-edge finance infrastructure, Lithuania is a good expansion point for Haru Invest. The centralized finance (CeFi) company’s in-house digital asset management team employs high-frequency algorithmic and trading strategies that take advantage of market inefficiencies and gaps to generate profits. Haru Invest has members across 140 countries and has processed over USD 2.

27 billion in total transaction volume with zero security breaches, late withdrawals or missed earnings pay-outs. Lithuania – the European fintech heaven The Baltic country has made it one of its purposes to allow and even help fintechs develop in the European area. Of course, this brings benefits to the country.

Most recently, Lithuania joined the US IRS list of KYC-approved jurisdictions, allowing its fintechs to register as QIs, saving time and effort. The US Internal Revenue Service (IRS) has a list of jurisdictions with approved know your customer (KYC) rules. This list is essential for financial institutions to identify countries that have adequate anti-money laundering and counter-terrorist financing frameworks.

The IRS regularly updates the list of countries that comply with KYC rules. Financial institutions, including banks and other financial intermediaries, use the list to determine if a country's KYC framework is robust enough to warrant further engagement. The list includes countries that have demonstrated a commitment to fighting money laundering, terrorism financing, and other financial crimes.

At the beginning of March we saw that Lithuania's fintech sector has outperformed global investment trends, with the country's fintechs generating EUR 375 million in H1 2022, marking an 80% increase from the same period the previous year. The Fintech Landscape in Lithuania 2022-23 Report highlights that the top ten highest-growth fintechs saw revenue increases of over 100%, contributing to the growth of the sector. Additionally, the report notes that Lithuania was at the time home to 263 fintech companies employing 7,000 people, representing a 19% increase from the previous year.

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