Lithuania has confirmed that all cryptocurrency firms operating within its jurisdiction must obtain a Markets in Crypto-Assets (MiCA) license to continue legal operations starting in 2026. The country's central bank, Lietuvos Bankas (Bank of Lithuania), announced the mandatory compliance, urging investors to immediately review their service providers' plans. This move positions Lithuania as one of Europe's stricter, yet more transparent, regulatory jurisdictions for digital assets.
The enforcement deadline is set for December 31, 2025. Starting January 1, 2026, the Bank of Lithuania will take action against any entity offering crypto services without a valid MiCA license. Firms found operating illegally will face substantial financial penalties, public warnings, and potential website blocking. In severe cases, providing unlicensed financial services could lead to criminal prosecution under the Lithuanian Criminal Code, with penalties including public works, restriction of liberty, or imprisonment for up to four years.
The scale of the crackdown is expected to be significant. While Lithuania currently hosts over 370 registered crypto entities, reports indicate only about 30 firms have submitted MiCA license applications so far. This suggests a large portion of the market may exit or be forced out. Firms not planning to apply have been instructed to begin an orderly wind-down, which includes notifying clients, communicating timelines, and ensuring all customer funds and assets are returned or transferred to licensed custodians before the deadline.
Lietuvos Bankas emphasized that early enforcement aims to reduce market shocks later. The MiCA framework introduces consistent rules for crypto exchanges, wallet providers, and token issuers, requiring them to meet capital, governance, transparency, and cybersecurity standards. This regulatory shift marks the end of Lithuania's era as one of Europe's most accessible crypto hubs, transitioning toward a smaller, fully licensed market aligned with EU-wide standards. The decision reflects broader European concerns over unregulated platforms, cross-border risks, and consumer protection gaps, aiming to balance innovation with financial stability and investor protection.
