Lithuania Issues Deadline for Crypto Firms Under EU MiCA Rules

• Crypto service providers in Lithuania must obtain a MiCA license by year-end to operate legally and avoid enforcement actions.
• Investors should verify providers’ licenses or transfer assets to a licensed provider or personal wallet for safety.
• MiCA ensures consumer protection, transparency, and standardized rules across the EU for licensed crypto service providers.

Lithuania’s central bank has said that the companies operating within the cryptocurrency market will be operating illegally if they fail to obtain the necessary license by December 31st, 2025. According to the Bank of Lithuania, the absence of the license will result in the enforcement action being taken against the companies.

Dalia Juškevičienė, head of the Investment Services and Undertakings Supervision Division, urged investors to check whether their crypto providers have applied for a MiCA license. “Only the activities of crypto-asset service providers licensed under the MiCA are subject to supervision by Lietuvos bankas,” she said.

As announced, the central bank stressed that investors using services from unlicensed operators cannot seek protection or intervention from Lietuvos bankas in case of disputes. Hence, those firms must either transfer crypto-assets to a licensed provider or to a personal self-hosted wallet before the end of the transitional period.

Additionally, service contracts with the new licensed provider should be concluded before transferring assets. Investors may also convert their crypto-assets into funds, depending on contractual terms.

MiCA Licensing and Regulatory Requirements

The Markets in Crypto-Assets regulation prescribes a single rulebook at the EU level regarding licensing, governance, capital requirements, and consumer protection. According to MiCA, only licensed players conform to investor protection standards, asset transparency, and other legal requirements.

Furthermore, the regulation allows crypto service providers licensed in Lithuania or other EU states to practice legally. Consequently, Lithuania-which had previously been seen as a haven for crypto firms due to its fast way of registration-now enters the phase of increased oversight after past collapses and losses incurred by investors.

Therefore, all crypto service providers in Lithuania need to hurry up and obtain permission. In the opposite case, they will lose their right to work on January 1, 2025.

In addition, these measures are supposed to reinforce market integrity and enhance transparency. The Bank of Lithuania also exercises supervision over licensed providers with respect to compliance with EU standards.