Lithuania tightens regulation of the crypto industry

The Lithuanian government approved amendments to anti-money laundering and counter-terrorism financing legislation concerning the regulation of the cryptocurrency market. сообщил the Ministry of Finance.

The bill sets clearer requirements for user identification and bans on anonymous accounts.

In addition, the plan calls for increasing the minimum share capital for service providers to €125,000 and specifying requirements for senior managers in such firms — for example, that they be residents of Lithuania.

The document provides that from 1 February 2023, cryptocurrency exchange operators will be publicly listed in the Companies Register.

The changes are expected to increase transparency in the sector and reduce money-laundering risks. Lithuanian Finance Minister Gintarė Skaistė also noted that authorities must prevent attempts to bypass sanctions on Russia using crypto assets.

According to the ministry, after tightening crypto regulation in Estonia, many firms moved to Lithuania. If eight providers of digital currency services began operating in the country in 2020, the figure rose to 188 in 2021.

Finance Ministry officials said they support regulation of the crypto market being developed in the EU, but Lithuania does not want to wait several more years for its final entry into force.

“We decided to take practical steps, do all the homework to strengthen our regulatory framework,” — сказал Deputy Minister Mindaugas Lytviniskas.

The drafted bill is planned to be presented in the spring session of the Lithuanian Seimas.

In March, the European Parliament Economic and Monetary Affairs Committee adopted a bill regulating cryptocurrencies MiCA, and later the EU backed data collection on users of non-custodial crypto wallets.

Representatives of the Bitcoin industry urged European lawmakers to rethink anti-money laundering rules, rejecting further tightening of regulation.

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