While most countries are trying different ways to entice cryptocurrency investors/traders and projects to within their borders, Lithuania is facing a totally different kind of problem. In fact, concerns are now being raised that the nation’s vibrant crypto industry might attract a deluge of funds that they should rather not touch – illegal money from neighboring Russia.

While the industry might be new, the nation has quickly found its niche in the ballooning global cryptocurrency market. Despite its size, Lithuania is actually among the top 25 countries for ICO activities in 2017.

More importantly, there are indications that the status is not going to change soon and that all these ICO activities are actually good for its economy. The European Commission projects that capital influx used to purchase these digital assets has helped fuel Lithuania’s economy which is anticipated to grow by 3.1 percent this year, which is way above the European average growth rate of only 2.3 percent.

Experts credit this rapid ICO growth to Lithuania’s crypto-friendly atmosphere. Starting a crypto-related business or launching an ICO is relatively easier in the country compared to other locations. It’s no wonder that, over the past year alone, approximately half a billion euros were raised from ICOs happening within its borders.

As expected, not everyone is happy with the nation’s recent gains in the cryptocurrency and blockchain industry. European central bankers, as well as regulators, now warn that criminals might use Lithuania’s surging crypto market for money laundering activities.

There are now concerns that illegally-obtained wealth could be exchanged for traceless digital currencies in the country. In Lithuania’s case, it would be relatively easy for dirty money from the Russian criminal underworld to enter the crypto market since the two countries share borders.

Fortunately, the country is well-aware of the potential risks involved and has proactively initiated actions to curb such risks. For instance, it recently released new ICO guidelines that put up a framework within which startups and crypto companies could operate.

In Lithuania’s eyes, the potential benefits of blockchain and cryptocurrencies far outweigh the potential risks.

Lithuania Forges Ahead With Its Crypto Goals Despite Potential Threats was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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