Lithuania to Implement Licensing for Cryptocurrency Firms

Lithuanian authorities plan to significantly reduce the number of cryptocurrency companies operating in the country by introducing mandatory licenses. This was reported by Bloomberg, citing Simonas Krėpšta, a member of the local central bank’s board.

Currently, around 580 specialized firms are registered in the jurisdiction, many of which were established by citizens of other EU countries.

The regulator will begin the preliminary assessment procedure for obtaining a license in July. Full regulation is planned to be introduced by June 2025.

Major exchanges that already hold licenses in other European states may not need to obtain additional permission in Lithuania.

In addition to local regulation, the MiCA legislation will come into effect across the EU in January 2025.

According to Krėpšta, the regulation aims to prevent the misuse of digital assets for money laundering or investor fraud.

“The crypto industry has failed in a lightly regulated environment. We have seen numerous bankruptcies, thefts, and the like, which have been a real blow to the sector,” he added.

The central bank also intends to invest in educational programs for its employees to gain a deeper understanding of cryptocurrency firms’ business models.

Back in September 2023, journalists named Lithuania the second most attractive EU jurisdiction for crypto firms after Poland.

However, an analysis of such companies’ activities revealed dozens of cases of fraud, money laundering, sanctions evasion, and illegal financing of criminal organizations.