Lithuania Presses Crypto Firms to Secure Licenses or Exit by 2025 Deadline

Lithuania's financial regulators have issued a final warning to cryptocurrency service providers, emphasizing that all operations must secure a license under EU rules by December 31, 2025. The Bank of Lithuania reiterated its stance that companies failing to comply will be considered to be operating illegally, facing criminal and administrative penalties. This move marks a tightening of oversight in the Baltic market, aligning with broader European regulatory efforts to bring digital asset services under stricter compliance frameworks.

Operators have been granted a transition period to apply for a license under the Markets in Crypto-Assets (MiCA) regime, but that window is set to close at the end of 2025. The bank has urged companies without plans to seek authorization to begin winding down their operations and communicating with clients. Failure to comply could result in fines, imprisonment for up to four years, or website shutdowns.

The central bank also highlighted the need for transparency and investor protection, particularly as the number of crypto service providers in the country continues to shrink. While over 370 companies have registered as offering crypto services, only around 120 remain active and generate revenue. Among these, just 30 have applied for licensing, with ten under review according to reports.

Enforcement Gaining Momentum

Lithuania's regulatory approach reflects a broader EU-wide push to standardize crypto compliance.

The Bank of Lithuania has warned that operators remaining unlicensed after the deadline will be subject to criminal prosecution under the Lithuanian Criminal Code. These penalties include imprisonment, fines, or restrictions of liberty. The central bank also holds authority to block websites of unlicensed providers and share details of their activities with law enforcement according to reports.

In recent months, the bank has stepped up its messaging to market participants, urging them to take decisive action. Dalia Juškevičienė, head of the Investment Services and Undertakings Supervision Division, emphasized that those not planning to continue operations must initiate active communication campaigns with their clients. This includes providing clear information on winding down, transferring funds, and exchanging crypto assets for fiat according to the bank.

Operators who fail to notify clients adequately risk further reputational and legal exposure. The bank has stressed that communication must be done via multiple channels to ensure full transparency. It also requires companies to complete the process of returning client assets before losing authorization to operate according to the bank.

Market Outlook and Compliance Pressures

The regulatory clampdown is expected to reshape the Lithuanian crypto landscape. With smaller, less compliant operators likely to exit the market, the sector is expected to consolidate. Larger firms with active licensing applications face increasing pressure to meet MiCA standards, including capital requirements, governance protocols, and customer protections according to market analysis.

Analysts speculate that the number of active crypto service providers in Lithuania will decline, but the remaining licensed entities could grow in scale. This trend mirrors similar regulatory developments in other EU countries, where compliance with MiCA has become a prerequisite for market access. For example, Confirmo, a Czech-founded stablecoin platform, recently became the first company in Europe to secure a MiCA license from the Central Bank of Ireland according to a press release.

The broader European market is also seeing a rise in mergers and acquisitions as firms seek to consolidate resources and acquire compliance-ready assets. In 2025, over $8.6 billion in deals were recorded in the crypto space, with demand for licensed entities and stablecoin platforms increasing under new regulatory environments according to market data. This trend is expected to continue into 2026, as more traditional financial players enter the space in pursuit of compliant infrastructure according to market analysis.

As the December 31 deadline nears, the pressure on unlicensed operators will only intensify. Lithuania's enforcement strategy-combining legal penalties, website blocking, and active client communication requirements-leaves little room for noncompliance. The outcome of these efforts will be closely watched by regulators and market participants across the EU, as they assess the effectiveness of MiCA in bringing crypto services under unified oversight.