Bank of Lithuania Enforces Crypto Licensing by Year-End Deadline

The Bank of Lithuania mandates all crypto service providers apply for EU MiCA licenses by December 31, 2025, with unlicensed operations ceasing on January 1, 2026.

Strict compliance aims to reinforce Lithuania’s role as a MiCA entry point, affecting around 370 entities and enhancing market integrity throughout the crypto industry.

Lithuania Enforces December 31 Crypto Licensing Deadline

The Bank of Lithuania announced a licensing requirement for crypto asset service providers (CASPs) ahead of integrating the EU’s Markets in Crypto-Assets (MiCA) regulation into national law. Non-compliant entities face severe penalties starting from January 1, including fines and prison terms.

Operators must cease new client intake without licenses, returning client assets urgently. The move impacts over 370 registered entities, yet only 30 have applied, signaling potential service disruption.

“It’s crucial for Lithuania to align with European standards,” a regulatory expert noted, emphasizing the significance of this compliance step for the nation’s crypto market.

Market participants express concerns over potential service gaps and operational halts. Industry stakeholders have yet to engage publicly, while enforcement demonstrates Lithuania’s intent to act as a “gateway” for EU MiCA adherence.

MiCA’s Impact on Lithuanian Market and EU Response

Did you know? In contrast to Lithuania, Latvia opted for a 12-month MiCA transition period, highlighting varied national approaches within the EU.

According to CoinMarketCap, Bitcoin (BTC) is priced at $88,626.01 with a market cap of $1.77 trillion. It holds a 59.46% market dominance, and the 24-hour trading volume witnessed a 20.31% change. Notably, BTC’s price altered by 1.06% over 24 hours yet fell by 23.06% in 60 days.

Coincu research suggests Lithuania’s decision may prompt other EU nations to adjust regulatory frameworks. Historical data indicates shifts in market dynamics due to regulatory tightening, affecting technological investment and compliance strategies across the region.