Bank of Lithuania Sets December 31 Deadline for Crypto Licenses

Lithuania’s central bank sets a firm deadline for crypto licensing, warning unlicensed firms of penalties, closures, and criminal liability.

Lithuania’s central bank has issued a strict warning to crypto firms. All providers will have to obtain licenses in the near future. Otherwise, operations will be illegal. The announcement is a sign of tougher enforcement. Moreover, there was emphasis on urgency by the authorities. The move is in line with European crypto regulation objectives. As such, firms are now faced with momentous decisions.

Lithuania Enforces MiCA Rules with Firm Licensing Deadline

The Bank of Lithuania stated that the crypto service providers must acquire licenses by Dec 31. From January 1, unlicensed activity is made illegal. This is for onboarding users, holding crypto assets, or providing services. Therefore, firms stand to face immediate enforcement actions.

The central bank emphasized that the issue of licensing is mandatory. It is not a recommendation. Strong language was reported by the regulators in regional media. Authorities encouraged companies not to delay applications. Waiting till the last days may lead to disruptions.

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Lithuania introduced the licensing regime in the framework of the EU Markets in Crypto Assets regulation. The MiCA framework was transposed into national legislation. It produced common rules throughout the European Union. Consequently, enforcement at the local level has increased.

A transitional period allowed existing crypto companies to comply. However, this period expires at the end of 2025. During this time, exchanges and wallet providers could seek approval. However, that window is closing fast.

After Dec. 31, unlicensed firms face severe consequences. Measures include financial fines and blocking of websites. Criminal prosecution is also an option. Penalties for prisoners can go up to four years in Lithuanian law.

The Bank of Lithuania also issued operational guidelines. Firms that have no intention of applying have to leave the market. They have to return all the client assets smoothly. Orderly wind-downs are needed for the protection of consumers.

Low License Applications Signal Major Market Shake-Up

As of July 18, 2025, there are more than 370 crypto companies that are registered in Lithuania. However, only about 30 applied for MiCA licenses. Even fewer progressed. Only ten applications were placed in active evaluation.

These figures indicate a large contraction of the market. Lots of firms may leave Lithuania. Higher costs to comply seem to be influential. Smaller operators may have difficulties in meeting requirements.

The MiCA framework has more stringent standards. Minimum capital thresholds range from 50,000 to 150,000 Euros. Requirements are based on the services provided. Governance rules are also stricter.

In addition, firms have to appoint a local AML officer. This officer must be a resident of Lithuania for tax purposes. Strong internal controls are required. Risk management systems must be written.

These are attempts to enhance the integrity of the market. Regulators are interested in reducing the risks of financial crime. Consumer protection is also a key task. However, the compliance burdens are increasing.

A consolidation of industry observers expected that well-capitalized firms would not go out of business. Others might move away or close down. Therefore, the Lithuanian crypto landscape can be changing fast.

On the whole, the message of the Bank of Lithuania is clear. Compliance deadlines are final. Enforcement will be strict. Firms must act immediately. The deadline is a turning point. Lithuania is gearing up to firmly embrace Europe’s regulated crypto future.

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