Lithuania tightens requirements for cryptocurrency providers

The Lithuanian regulator is strengthening its oversight of the digital asset market within the framework of pan-European regulation. All cryptocurrency service providers operating in Lithuania are required to obtain the appropriate license from the regulator by December 31. The Bank of Lithuania officially announced this, emphasizing that this is not a recommendation, but a strict obligation arising from the MiCA (Markets in Crypto-Assets) regulation.

Licensing under MiCA: No Exceptions

According to the Bank of Lithuania, MiCA requirements apply to cryptocurrency exchange operators and depository wallet providers. Companies that fail to obtain a license by the deadline will be considered operating outside the law. After the deadline, the regulator intends to take enforcement action against such market participants.

Central bank representatives explicitly stated that after December 31, unlicensed operators will face sanctions under both national and European legislation.

What sanctions will violators face

The Bank of Lithuania warned that the range of possible sanctions is quite broad. It includes administrative fines, blocking of websites and digital platforms, and in some cases, even criminal liability. This tough approach is motivated by a desire to protect investors and bring the digital asset market into line with unified EU standards.

Dalia Juškevičienė, Head of the Bank of Lithuania’s Investment Services and Enterprises Supervision Department, noted that the regulator expects companies to actively engage with clients. She stated that market participants should inform users in advance of their plans, as well as the potential risks associated with licensing or termination of operations.

What should unlicensed companies do

The central bank specifically emphasized that companies that do not plan to obtain a MiCA license must begin the winding-down process now. This includes terminating services and withdrawing funds from Lithuanian clients by December 31. This approach will help prevent violations and reduce risks for users.

Previous Precedents and a Signal to the Market

Regulatory rigor in Lithuania is more than just words. The Lithuanian Financial Crime Investigation Service (FNTT) previously fined Payeer for violating international sanctions. The company provided digital asset depository services and a virtual currency exchange center, setting a precedent for the entire market.

Lithuania is thus sending a clear message: the transition to MiCA regulation is inevitable, and non-compliance will have serious consequences for the cryptocurrency business.