Lithuania Warns Crypto Firms: No License, No Business After December 31

Lithuania’s central bank has issued a clear warning to cryptocurrency companies operating in the country. The Bank of Lithuania said crypto service providers that fail to secure the required license by December 31 will be treated as operating illegally and may face enforcement action.

The message targets firms offering crypto exchange services and custodial wallets to Lithuanian users. According to the regulator, only companies licensed under the European Union’s Markets in Crypto Assets framework, known as MiCA, will be allowed to continue operating after the transition period ends.

The announcement places pressure on dozens of firms that registered in Lithuania during earlier, lighter regulatory regimes. Many now face a hard deadline to either comply with EU wide rules or exit the market.

The regulator stressed that licensing can be obtained either directly from Lithuania or from another EU member state. However, firms must hold an approved MiCA authorization to operate across the bloc. Registration alone will no longer be sufficient.

While it did not list specific sanctions, Lithuanian law allows for fines, orders to cease operations, and removal from the national crypto register.

Users Urged to Check Providers Early

Alongside the warning to firms, the Bank of Lithuania issued guidance to crypto users. It urged customers to check whether their service provider has applied for or obtained a MiCA license before the end of the year.

If a provider plans to exit the market, users should act before December 31. The regulator said clients can request transfers of crypto assets to licensed providers or to self hosted wallets under their own control.

For fiat balances, customers may instruct providers to move funds to personal bank accounts or to other payment institutions, depending on contract terms. The central bank said early action reduces the risk of service disruptions or delays.

Part of a Broader EU Regulatory Shift

Lithuania was once a popular hub for crypto firms due to its fast registration process. However, EU regulators have since moved to tighten oversight following market collapses and consumer losses in recent years.

MiCA introduces unified rules on licensing, governance, capital requirements, and consumer protection across the EU. National regulators, including the Bank of Lithuania, now play a supervisory role only over licensed entities.

As the deadline approaches, Lithuania’s message is direct. Crypto companies must meet EU standards or leave the market. Users, meanwhile, are being told not to wait until the final days to secure their assets.