The Bank of Lithuania has issued a firm warning to domestic crypto asset service providers (CASPs) that they must obtain the required license by December 31 or risk being deemed to operate illegally, potentially triggering severe penalties.
In a statement, the central bank made clear that beginning January 1, any crypto firm continuing to onboard new users, receive crypto assets, or provide digital asset services without authorization under the European Union’s Markets in Crypto-Assets (MiCA) Regulation will be considered to be engaging in unlawful financial activity.
Under Lithuania’s interpretation of MiCA, which took effect across the EU this year, all CASPs must secure a license from the Bank of Lithuania in order to operate legally.
The deadline applies to crypto exchanges, trading platforms, custodial service providers, wallet operators, and other services that handle crypto assets or facilitate user access to them.
The Bank of Lithuania emphasized that non-compliance after January 1 could bring “significant administrative and criminal sanctions.” These include fines, blocking of websites or digital services, and, in the most serious cases, up to four years in prison for individuals directly responsible for illegal operations.
The central bank stated that it will closely monitor the market and coordinate enforcement efforts with law enforcement agencies.
The regulator’s ultimatum underlines Lithuania’s commitment to implementing the EU’s landmark MiCA framework, which aims to bring transparency, investor protection, and legal clarity to the once largely unregulated crypto sector.Â
MiCA requires CASPs to meet capital, governance, risk management, cybersecurity, and anti-money-laundering standards before receiving authorization.
Industry participants have been scrambling to meet the licensing requirements, citing complex application procedures and regulatory uncertainty. Some smaller platforms have warned that the strict regime might force them to exit the market or scale back services.
Despite industry concerns, the Bank of Lithuania reiterated that the deadline is final and that it will not extend transitional arrangements.
The regulator urged all crypto service providers to finalize their applications immediately to avoid enforcement action and ensure continued legal operation in the Lithuanian market into 2026 and beyond.