Lithuania prepares to enforce stringent cryptocurrency regulations starting Jan. 1, threatening hundreds of unlicensed digital asset firms with fines, website blocks and potential prison sentences. The Bank of Lithuania has warned that platforms operating without proper MiCA authorization after the deadline will face criminal prosecution under national law.
What Happened: Regulatory Crackdown
The Baltic nation's central bank announced that any crypto service provider continuing operations without authorization after Dec. 31 will be deemed illegal.
While over 370 firms are registered in Lithuania, only approximately 120 actively operate and report revenues.
Fewer than 30 companies, representing roughly 10% of registered entities, have applied for MiCA licenses as the transitional period expires. Dalia Juškevičienė, head of the central bank's Investment Services and Undertakings Supervision Division, stated that firms not planning to continue operations must launch immediate communication campaigns to inform clients about service discontinuation.
The regulator will pursue enforcement actions including financial penalties, website blocking and criminal charges carrying prison terms up to four years.
Lietuvos Bankas emphasized that enforcement will extend beyond active platforms to target any registered entity maintaining websites, accounts or custody services.
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Why It Matters: Compliance Era
Lithuania's crackdown signals Europe's transition from theoretical MiCA framework to active enforcement, establishing the Baltic state as a strict gateway for compliant operations rather than a permissive crypto hub. The move reflects a broader regional shift as unlicensed operations face elimination across the continent.
Latvia, Lithuania's northern neighbor, is simultaneously positioning itself as another Baltic MiCA gateway.
Mārtiņš Kazāks, governor of Latvijas Banka, highlighted the country's talent pool and financial infrastructure as foundations for becoming a significant European fintech hub.
Major exchanges are racing to achieve compliance before deadlines. KuCoin recently secured MiCAR approval from the Austrian Financial Market Authority, while Coinbase implemented MiCA-compliant whitepapers four months earlier, raising the bar for EU regulatory adherence.
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