Gate UAB, the crypto-fiat processing entity of the Gate cryptocurrency exchange platform, has risen among the top tax contributors in Lithuania just one year after its establishment. Recent data published by a blockchain researcher using the pseudonym DeFi Ignas (@DefiIgnas on X) reveals that Gate UAB paid over 45 million dollars in taxes, excluding VAT, to the Lithuanian government in 2022.

During the fiscal year 2022, Gate's subsidiary not only secured the second place among contributing companies but also ranked as the fourth largest tax contributor in Lithuania, a Baltic country known for its openness to blockchain technologies and cryptocurrencies.

On X, DeFi Ignas highlighted this remarkable evolution: "There is a particular reason why I appreciate Gate. Through its entity Gate UAB, Gate has contributed more fiscally to my small home country, Lithuania, than the four largest Nordic banks combined. Gate finances the renovation of our dilapidated roads and supports our welfare state."

The choice of Lithuania as the headquarters of Gate UAB is interesting, providing access to the European Union and hosting Gate's financial operations. Media sources had previously reported that Gate had turned to Lithuania after facing obstacles in obtaining a crypto license in Malta and London.

However, the situation is not without clouds for Gate and its Lithuanian subsidiary. The platform is currently facing several lawsuits, which it categorically denies. Gate UAB is specifically accused of facilitating "suspicious transactions" for Gate, with 6.3 billion dollars reportedly transferred to another subsidiary of Gate, currently under the scrutiny of the Securities and Exchange Commission (SEC) for an alleged mixing of client funds. Furthermore, it seems that Gate UAB was used for the purchase of a 55 million dollar private jet and allegedly directed 62.5 million dollars to the personal account of the CEO of Gate.

These developments have raised questions about Gate's motivations for choosing Lithuania, a country perceived as having "less strict" standards, as its operational base. Critics, including an advisor to the European Central Bank (BCE), have wondered why Gate could not obtain regulatory approval elsewhere if it was truly a reputable company.

Nevertheless, in the current context of regulatory uncertainty surrounding cryptocurrencies, such criticisms may seem unjustified in the eyes of many cryptocurrency advocates. The benefits of cryptocurrencies for small countries that adopt them are becoming increasingly evident, and Lithuania appears to be one of the beneficiaries.

Legal experts and Lithuanian observers do not seem concerned about the allegations against Gate UAB and Gate, expressing their optimism regarding the future dissipation of "FUD" (Fear, Uncertainty, Doubt) surrounding the platform, similar to recent cases involving other major players in the industry facing the SEC. Vytautas from the "Crypto Economy Organization" echoed this sentiment, stating: "No accusation has been proven; there are only assumptions. The United States is leveling accusations against many players. This is the American model where the regulator accuses everyone of something, then fails to prove it and backtracks. I believe the same scenario will happen with Gate, as there is no evidence so far, and from what we observe in the market, there is virtually no indication that any violations have been committed."

Despite the controversies, the presence of Gate and its subsidiary Gate UAB in Lithuania is undeniably beneficial for the country. Many hope that other cryptocurrency companies will follow this example, potentially helping to address urgent issues such as the country's failing infrastructure and the underfunding of educational institutions.

Gate UAB, launched on March 7, 2022, as the exclusive payment technology entity of Gate, plays a crucial role in facilitating crypto-fiat transactions, powering the payment API and providing compatibility with major payment card operators. Its rapid rise in the ranking of Lithuanian tax contributors reflects the growing importance of the cryptocurrency sector in the global financial landscape.