Lithuanian Central Bank: Unlicensed Crypto Services Illegal from January 1

According to market sources, the Lithuanian Central Bank announced that all crypto asset service providers offering services in the country must submit license applications by December 31, 2025, in accordance with the EU's Markets in Crypto-Assets Regulation (MiCA) framework. In other words, from January 1, 2026, any institutions operating without a MiCA license will be considered illegal.

To ensure compliance with the crypto regulatory framework, the Lithuanian Central Bank has implemented a series of strict regulatory and enforcement measures. These include hefty fines for violations, legal shutdown of operational websites, and in severe cases, criminal charges against responsible individuals, who could face up to 4 years in prison. The central bank also explicitly requires institutions planning to cease operations to notify clients promptly and to orderly return and transfer client assets.

Data shows that Lithuania's recent regulatory actions cover a broad scope, but industry compliance conversion rates are relatively low. Currently, there are approximately 370 registered crypto entities in Lithuania, with only about 30 having submitted license applications so far. Considering that only 120 active crypto firms are registered locally, this means many active practitioners face a critical choice: complete the application process before the end of the year or exit the market.

In summary, Lithuania's action is not just about industry cleanup but also reflects its long-term strategic positioning. The country is striving to leverage an efficient and transparent approval process to become a "gateway" or "bridgehead" for crypto companies entering the EU single market.

The goal of this move is to attract high-quality enterprises that wish to operate compliantly within the EU by strictly enforcing MiCA standards, thereby securing a competitive advantage in future digital finance battles.

Although this policy may cause short-term market disruptions, in the long run, it is expected to bring greater transparency and stability to Lithuania's and the entire EU's crypto markets.

#立陶宛央行 #MiCA