Lithuania has implemented new rules regulating the activities of operators working with crypto assets, in accordance with European Union Regulation 2023/1114 on Markets in Crypto-Assets (MiCA). These updates are designed to strengthen oversight in the cryptocurrency sector, enhance transaction transparency, and create safer conditions for financial service users.
The measures adopted represent a significant step towards organizing the European cryptocurrency market, making it more reliable and secure for both private investors and professional market participants. They also aim to minimize the risks of fraud and unethical practices by individual operators. Thus, Lithuania reaffirms its commitment to adhering to high European standards in financial services and innovative technologies.
The Bank of Lithuania is Responsible for Issuing CASP Licenses
Starting from January 1, 2025, companies providing services related to crypto assets must obtain a crypto-asset service provider license issued by the Bank of Lithuania. This requirement applies to a wide range of companies, including virtual currency exchange operators, providers of custodial crypto wallets, and firms offering platforms for trading and working with crypto assets. Additionally, the updates cover operators involved in token issuance, crypto portfolio management, and consulting services. The introduction of mandatory licensing is aimed at standardizing operations in this rapidly growing sector.
The Central Bank of Lithuania, which plays a crucial role in maintaining the stability of the country’s financial system, is the primary authority responsible for issuing such CASP licenses. In addition to its administrative function, the Central Bank actively collaborates with the Financial Crime Investigation Service (FNTT), which monitors compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations. This comprehensive approach significantly enhances transaction transparency and reduces the likelihood of their misuse for illegal purposes.
Deadlines for Obtaining Crypto Licenses
New rules for regulating the crypto asset market came into effect in December 2024, marking a significant step towards unifying regulations for companies operating with crypto assets.
Companies wishing to continue providing crypto services in accordance with the law must obtain a special CASP license, issued by the Bank of Lithuania. This license confirms compliance with strict standards and requirements aimed at ensuring transaction security, protecting consumer interests, and adhering to AML and CFT regulations.
Moreover, unified rules simplify operators’ activities in the international arena, allowing companies operating in Lithuania to access the entire European Union market.
The transition period, which lasts until June 2025, is particularly important for operators encountering the need for a Central Bank CASP license for the first time or needing to update their procedures to fully comply with the standards.
Key Objectives and Benefits
The measures introduced aim to strengthen financial stability, ensure market transparency, and protect investor interests. By adhering to new EU standards, Lithuania is becoming an attractive jurisdiction for innovative crypto operators, offering the opportunity to operate across the entire European market. Additionally, the harmonization of rules helps create a unified legal framework for all EU member states, promoting the development of international cooperation.
These changes take into account the rapid growth in the popularity of cryptocurrencies and the need to establish an effective regulatory mechanism. Through these measures, Lithuania demonstrates its readiness to support new technologies and strengthen its position as a leader in regulating digital assets.
If You Need Assistance
Companies planning to operate in Lithuania’s crypto services sector must carefully prepare to meet new requirements and ensure full compliance with established standards. Eesti Firma is here to help, offering consulting and accounting services.
Contact us to discuss how we can assist your business in successfully adapting to the new requirements. We provide professional support, tailored solutions, and guidance at all stages of your operations.
Submit a request on our website, and our specialists will contact you to prepare your business for new challenges and unlock opportunities for growth and development!
