Bank of Lithuania Issues Guidelines on Security Token Offerings

Recognizing that businesses are seeking alternative ways to raise capital other than bank lending, the Bank of Lithuania has issued new guidelines on security token offerings. The goal is to clarify applicable rules without introducing more regulations.

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Guidelines Aiming to Avoid More Regulations

The central bank of the small Baltic nation of Lithuania has recently noted that the focus in the crypto space is shifting from initial coin offerings (ICOs) to security token offerings (STOs). Explaining the differences between the two, the Bank of Lithuania issued recommendations on capital raising through STOs.

Lietuvos Bankas is among the first financial regulators to issue guidelines on STOs. In an announcement published on its website, the bank emphasized that the new guidelines provide greater regulatory clarity while aiming at higher investor protection. Times have…