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. For crypto companies in Lithuania the practical outcome is simple: the former registration of virtual currency operators is replaced by a full MiCA license issued by the Bank of Lithuania.
The Bank of Lithuania Is Responsible for CASP Licensing
Starting from 30 December 2024, when the provisions of MiCA governing service providers became applicable, 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, in particular:
- virtual currency exchange operators (crypto-to-fiat and crypto-to-crypto exchange);
- providers of custodial crypto wallets and other custody services;
- firms offering platforms for trading and working with crypto assets;
- operators involved in the placing of tokens, transfer services and order execution;
- providers of crypto portfolio management and advisory services.
The introduction of mandatory licensing is aimed at standardizing operations in this rapidly growing sector. Registration-only status, which was previously sufficient for virtual asset service providers (VASPs) in Lithuania, no longer gives the right to provide these services.
The central bank, 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, also referred to as FCIS), the body that previously supervised registered VASPs and continues to monitor compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations. This two-tier supervision makes crypto regulation in Lithuania considerably stricter than the previous registration regime and reduces the likelihood of crypto assets being misused for illegal purposes.
Deadlines for Obtaining a Crypto License in Lithuania
New rules for regulating the crypto asset market came into effect in December 2024, aligning crypto regulation in Lithuania with the rest of the European Union. The national framework is set out in the Lithuanian Law on Markets in Crypto-Assets, adopted on 11 July 2024, which designates the Bank of Lithuania as the licensing and supervisory authority.
Companies wishing to continue providing crypto services in accordance with the law must obtain a special CASP license, issued by the Bank of Lithuania. In practice this crypto license becomes the only legal basis for exchange, custody and trading services in the country. It confirms compliance with strict 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 under the MiCA passporting mechanism.
MiCA itself allows member states to let existing providers operate under national rules for up to 18 months, until 1 July 2026. Lithuania deliberately chose a much shorter path: citing the risks of money laundering, sanctions circumvention and fraud in the sector, the authorities limited the grandfathering window for previously registered operators to five months.
The transition period, which lasts until 1 June 2025, is therefore 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 new requirements. Companies entering the market for the first time cannot rely on the transition period at all: they need authorization before starting operations.
| Date | What changes in Lithuania |
|---|---|
| 11 July 2024 | The Seimas adopts the Law on Markets in Crypto-Assets; the Bank of Lithuania is designated as the competent authority under MiCA |
| 30 December 2024 | MiCA rules for crypto-asset service providers apply; the Bank of Lithuania starts accepting CASP license applications |
| 1 June 2025 | End of the transition period: previously registered operators must be licensed to continue operating |
| 1 July 2026 | End of the maximum grandfathering period allowed by MiCA across the EU (not applied in Lithuania) |
Operating without a license after the transition period
Once the transition period ends, providing crypto-asset services in Lithuania without a CASP license will be treated as illegal financial activity. Operators that do not intend to apply should plan an orderly wind-down and the return of client assets in advance.
Key Objectives and Benefits of MiCA Licensing in Lithuania
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 crypto companies seeking a MiCA license, offering the opportunity to serve clients across the whole EU on the basis of a single crypto license. 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. The scale of the sector explains the urgency: according to the Bank of Lithuania, the number of crypto companies in the country grew from 9 in 2020 to about 850 by the end of 2022, which had already led to a tightening of AML rules for virtual currency operators in 2022. With the new crypto regulation in place, Lithuania demonstrates its readiness to support new technologies and strengthen its position as a leader in regulating digital assets.
What the New Rules Mean for Existing Crypto Companies
For companies already registered in Lithuania as virtual currency exchange or wallet operators, the coming months are decisive. The transition period gives them time to obtain a MiCA license, but the Bank of Lithuania has made clear that only companies paying due attention to compliance, AML and CFT controls and service quality will be authorized. Three points deserve attention now:
- Scope of services. Map the current business model to the crypto-asset services defined in the Regulation; the license is granted for specific services, not for crypto activity in general.
- Governance and controls. Internal AML and CFT procedures, risk management and client asset safeguarding must meet the standards of a supervised financial institution.
- Timing. Submitting the file early leaves room for the regulator’s questions before the transition period ends.
If You Need Assistance with Crypto Licensing in Lithuania
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: we support clients seeking a crypto license in Lithuania, assist with company registration in Lithuania, and provide the consulting and accounting services a licensed CASP needs on an ongoing basis.
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!
Frequently Asked Questions
The Bank of Lithuania is the competent authority that authorizes crypto-asset service providers under MiCA. AML and CFT supervision is shared with the Financial Crime Investigation Service (FNTT).
Any business providing crypto-asset services in or from Lithuania: exchange between crypto and fiat or other crypto, custody, trading platforms, transfer services, order execution, placing of crypto assets, portfolio management and advice on crypto assets.
Under the national Law on Markets in Crypto-Assets, previously registered operators may continue on the basis of their old registration until 1 June 2025. After that date only companies holding a CASP license from the Bank of Lithuania may provide crypto-asset services. New market entrants need the license before they start.
Yes. Authorization granted by the Bank of Lithuania under MiCA is passportable: after a notification procedure through the home regulator, the company may offer its services in all EU member states without obtaining further licenses.
Only during the transition period. Registration as a virtual currency exchange or wallet operator under the previous regime is not converted into a MiCA authorization automatically; the company must go through authorization by the Bank of Lithuania or cease providing crypto-asset services.
A VASP registration was a notification-type entry supervised for AML purposes by the FNTT. A CASP license is a full financial authorization under MiCA: before granting a MiCA license the Bank of Lithuania assesses the business model, management, capital and internal controls before granting it, and the licensed company is then subject to ongoing prudential supervision.
