Lithuania, regulation and partnership with China: how the country became a fintech European hub

Marius Jurgilas, a board member at the Bank of Lithuania, said that his country is ready to welcome Chinese fintech firms and act as a gateway for access across the Europe. Joe Wallen on Forbes explains that the Lithuanian bank in 2015 signed a co-operation agreement with the China Banking Regulatory Commission. Since then, the Bank of Lithuania has already issued four electronic money institution licenses and one payment institution license to Chinese companies.
The explosion in the number of fintechs choosing Lithuania as their new hub can be attributed to the creation of a regulatory sandbox by the Bank of Lithuania to provide a platform for firms to test innovation before bringing a product to market.
Lithuania’s government has also sought to introduce new laws and tax relief to the benefit of start-ups. Its corporate tax rate is the third-lowest in the EU and its personal income tax rate is the second-lowest in the union, while start-ups are able to obtain an e-money or payment license in just three months, the quickest in the EU.