The countdown to crypto regulation in Lithuania has ended. The Central Bank (Bank of Lithuania, Lietuvos bankas) has warned non-compliant platforms, urging cryptocurrency and custodial wallet operators to organise an orderly exit from the market by 2026 in order to protect investors and prevent illegal activity.
MiCA and the end of the transitional period: a turning point for crypto asset service providers
31 December 2025 marked the end of the transitional period granted to crypto-asset service providers in Lithuania.
From that date onwards, any activity relating to the storage, exchange, or management of these digital assets carried out without a licence issued in accordance with the Markets in Crypto-Assets (MiCA) Regulation became illegal.
In anticipation of this major regulatory shift, the Bank of Lithuania issued specific guidelines, particularly for operators registered with the State Enterprise Centre of Registers that did not intend to comply with the new European regulatory framework.
The Bank of Lithuania emphasised one key point: the responsibility of operators towards their customers. The relevant platforms were urged not to wait until the last minute, but instead to launch active and repeated communication campaigns.
“Crypto companies planning to cease operations must act without delay. It is imperative that they communicate proactively to notify their customers. These notifications must include a specific timetable for closure and detailed procedures enabling users to recover their funds and transfer their digital assets,” said Dalia Juškevičienė, Head of Investment Services Supervision at the Bank of Lithuania.
The regulator also emphasised the obligation to provide customers with accurate and comprehensive information.
This includes communicating a definitive timetable for the cessation of operations and the precise technical arrangements for the return of assets.
Users must also be informed of the option to liquidate their positions into fiat currency and transfer the proceeds to an authorised financial institution.
Asset return and platform obligations
The Bank of Lithuania also reiterated that, before their authorisation was permanently revoked, operators were required to take all necessary measures to ensure the return of customer assets.
In practice, this meant that platforms had to either transfer custody of assets to authorised custodians or enable the transfer of crypto-assets to self-hosted wallets designated by customers.
A one-off communication was not sufficient; the information had to be clearly and repeatedly disseminated via official websites, social media, and direct customer contact channels.
This obligation to return assets forms part of the broader investor protection framework and strict compliance with the MiCA Regulation.
Sanctions and consolidation of the Lithuanian crypto market
From 1 January 2026, offering crypto-asset services without MiCA authorisation constitutes illegal financial activity.
In response to this change in the legal landscape, Lithuanian lawmakers have introduced a dissuasive penalty regime for offenders, who now face sanctions ranging from corrective measures to imprisonment for up to four years.
In addition to criminal penalties, the national regulator has been granted enhanced powers to intervene directly, including the ability to block online access to unauthorised platforms and report suspicious activity to the competent authorities.
Furthermore, figures published by the Bank of Lithuania illustrate the scale of the changes since MiCA came into force. By the end of 2025, around 30 companies had applied for a licence as crypto-asset service providers, while 10 applications were still under review.
Meanwhile, more than 370 companies declared themselves active in the sector, but only 120 were actually engaged in economic activity, generating revenue and publishing financial statements.
MiCA, a strong signal for the entire European market
By issuing this warning and implementing strict measures, Lithuania is aligning itself with the broader strategy of the European Union to clean up the crypto-asset market, strengthen investor protection, and eliminate non-compliant actors.
In line with European Union requirements, the country is implementing the MiCA Regulation to ensure regulatory harmonisation across the continent.
Following the adoption and enforcement of MiCA across several European countries, Lithuania is now among the states actively applying this regulatory framework, marking a new era for crypto platforms in Europe. Compliance is no longer optional, but a condition for survival.
