- Lithuania is now enforcing the Dec 31, 2025, MiCA deadline for crypto licensing compliance.
- Unlicensed crypto firms must stop operations, return client assets, or face criminal penalties.
- Only MiCA-licensed CASPs may operate as Lithuania tightens crypto oversight rules.
Lithuania’s central bank has set December 31, 2025, as the final deadline for crypto service licensing, forcing unapproved firms to exit. The decision applies nationwide and follows the EU Markets in Crypto-Assets regulation. According to the Bank of Lithuania, the move aims to align supervision, protect clients, and clarify which firms may legally operate.
Transition Deadline and Mandatory Exit Rules
The Bank of Lithuania confirmed that the transitional period for crypto-asset service providers ends on December 31, 2025. After that date, virtual asset service providers without a MiCA-compliant CASP licence must stop all operations. Notably, this includes halting new client onboarding and ending custody of client assets.
Regulators stated that unlicensed activity after the deadline will count as illegal financial services. As a result, firms must return client funds and crypto-assets before authorization lapses. However, the bank stressed that operators should not wait until the final date.
The Bank of Lithuania also issued formal guidance urging early and orderly wind-downs. According to the notice, firms that do not plan to seek licences should begin shutdown procedures immediately. This step aims to prevent rushed asset transfers close to the deadline.
The guidance also outlines strict communication expectations. Operators must inform clients repeatedly and through multiple channels. Notably, the bank cited websites, social platforms, and direct client contacts as required outlets.
Licensing Applications and Market Participation Numbers
Alongside the deadline, regulators disclosed updated licensing figures. As of July 18, 2025, about 30 companies had applied for CASP licences with the Bank of Lithuania. However, only 10 applications were under active evaluation at that time.
These numbers contrast with registry declarations. More than 370 firms have registered with Lithuania’s State Enterprise Centre of Registers as crypto service providers. However, only around 120 currently operate, generate revenue, and submit financial statements.
This discrepancy prompted closer scrutiny. According to the central bank, registration alone does not authorize service provision under MiCA. Consequently, many registered firms must either apply for licences or exit the market.
Officials also highlighted operational expectations during the transition. Firms must help clients transfer crypto-assets to approved custodians or self-hosted wallets. Additionally, operators must offer options to convert crypto-assets into fiat funds when requested.
Dalia Juškevičienė, head of the Investment Services and Undertakings Supervision Division, emphasized the importance of client protection. She stated that firms should actively guide clients through timelines and asset transfer steps. Notably, she warned against one-time notices or incomplete disclosures.
Related: ECB Pushes Digital Euro to Protect Autonomy Across Bloc
Enforcement Measures and Legal Consequences
Beyond guidance, the Bank of Lithuania outlined enforcement tools. After December 31, 2025, unlicensed crypto services may subject their operators to criminal liability. Under Lithuania’s Criminal Code, penalties can include fines, restricted liberty, or imprisonment up to four years.
Moreover, the central bank retains authority to block websites suspected of illegal financial activity. It also publishes lists of entities operating without authorization. Notably, regulators share suspected criminal cases with law enforcement agencies.
To prevent such outcomes, regulators insist on proactive compliance. Firms must complete asset returns before losing authorization. Additionally, custody transfers must follow client instructions and documented procedures.
The Bank of Lithuania stated that repeated communication remains essential throughout wind-downs. Firms should confirm that information reaches all clients. This requirement reflects concerns about dormant accounts and inactive users.
The transition framework also clarifies supervisory boundaries. Only MiCA-licensed CASPs may provide crypto services after the deadline. Therefore, all other activities will fall outside lawful financial operations in Lithuania.
Meanwhile, Lithuania has defined a firm regulatory endpoint for crypto services. The deadline establishes licensing as the sole path to continued operation. At the same time, regulators outlined detailed steps to protect clients during exits and licensing reviews.
