Lithuania to Take Action Against Unlicensed Crypto Firms After December 31

TLDR

• Lithuania will block websites of unlicensed crypto firms after December 31, 2025.
• Crypto firms must apply for MiCA licenses or face fines, website blocking, or jail time.
• Over 370 crypto firms are registered in Lithuania; only 30 applied for the new license.
• Providers not applying for a MiCA license must wind down operations by year-end.

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Starting January 1, 2026, crypto-asset service providers in Lithuania must secure a MiCA license or face severe legal consequences. With over 370 companies registered, only 120 are actively operating, and just 30 have applied for the necessary licensing. The Bank of Lithuania has warned firms to comply or wind down operations by December 31, 2025, or risk fines, website blocks, and even criminal charges. Time is running out for unlicensed providers.

Lithuania to Enforce Legal Action on Unlicensed Crypto Providers

The Bank of Lithuania has issued a clear warning to all crypto-asset service providers: after December 31, 2025, operating without a MiCA (Markets in Crypto-Assets) license will be considered illegal. The move aligns with the European Union’s broader regulation to ensure better oversight and protection of investors within the crypto industry.

As the deadline approaches, businesses in Lithuania offering crypto services, including exchanges and wallet operators, face significant pressure to comply. Those who fail to secure a MiCA license will be subject to penalties, which may include hefty fines, website blocking, public warnings, and even criminal prosecution.

The Push for Compliance

The Bank of Lithuania has made it clear that any crypto firms planning to continue operations in the country must be licensed under the new MiCA framework. Firms that do not intend to apply for the license are being urged to wind down operations before the deadline. The central bank emphasized the importance of taking early action to ensure a smooth transition and safeguard investors.

The MiCA regulation was introduced to bring clearer legal structures to the crypto industry, addressing concerns about transparency, accountability, and investor protection. The shift aims to prevent any legal loopholes in the crypto ecosystem that could potentially harm consumers or undermine market integrity.

While Lithuania has seen significant growth in the crypto sector, with over 370 companies registered, only about 120 are actively operating, according to the latest data from the Bank of Lithuania. As of mid-July, just 30 firms had applied for the new MiCA license, signaling that many providers may still be unprepared or unwilling to comply.

Penalties for Non-Compliance

After January 1, 2026, any firm continuing to operate without the required MiCA license will face serious legal consequences. These sanctions could range from fines and blocked websites to potential criminal charges. The penalties include the possibility of imprisonment for up to four years for individuals involved in illegal crypto operations.

The authorities have also indicated that they will be closely monitoring crypto companies, with the power to issue public warnings and pursue legal action if necessary. The Bank of Lithuania has made it clear that the aim of these measures is to ensure that firms operating in the crypto sector are following legal frameworks that protect investors and promote transparency.

Operational Challenges and Customer Communications

For those firms that decide to cease operations, it is critical to communicate effectively with customers. Providers are encouraged to offer clear instructions on how to withdraw or transfer funds and crypto-assets. Firms must also explain the process for exchanging crypto-assets for funds held with a custodian to ensure a seamless transition for their clients.

The central bank has also advised operators to provide specific timelines and instructions to customers regarding the closure of services. This will help prevent confusion and potential issues for investors who may be impacted by the transition. Providers that fail to clearly communicate these steps risk further penalties and damage to their reputation.

A Critical Transition for Lithuania’s Crypto Industry

With just under a year remaining before the deadline, the pressure is mounting on crypto firms in Lithuania to ensure compliance with MiCA licensing requirements. As the country moves to tighten its regulatory framework, businesses that fail to meet the new standards face the risk of being shut down or penalized. These measures aim to provide greater clarity and security in the crypto market, aligning Lithuania’s regulatory approach with European Union-wide standards.

While many firms may struggle to meet these demands, the Bank of Lithuania remains firm in its stance. The authorities emphasize that these changes are necessary to protect investors, ensure transparency, and promote the responsible growth of the crypto market in Lithuania.

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