Requirements for crypto companies operating on the Lithuanian market will be strengthened, and from 2025, mandatory licensing for activities related to digital assets will be implemented.
About 580 crypto companies are currently registered in Lithuania. However, the Central Bank believes that not all of them meet the necessary criteria for obtaining a license. The licensing process will be completed by June 2025. Firms that have not passed it will be forced to “leave the ecosystem”.
7 of the largest global crypto exchanges are already operating in Lithuania. Some crypto firms have received licenses in other EU countries, so they may not need a license in Lithuania.
Lithuania’s desire to become a financial and technological hub has provoked an influx of unregulated crypto firms into the country. This could cause problems amid the introduction of MiCA, a pan-European crypto regulation aimed at fighting money laundering and protecting investors, which will come into force in January 2025.
The Central Bank reports that lax regulation has already led to a number of bankruptcies and fraud cases around the world, a serious blow to the industry, so decisive action is needed as soon as possible.