Lithuania’s central bank announced that crypto asset service providers operating in the country must obtain a license by December 31, warning that unlicensed activity after this date will be treated as illegal.
Bank of Lithuania released a statement outlining a firm timeline for crypto companies. Under the new framework aligned with European Union regulations, all platforms operating in the country are required to complete their authorization process by December 31 or face a ban on operations.
The central bank stated that as of January 1, any entity without a valid license that continues onboarding new users, receiving crypto assets, or providing services will be considered to be engaging in illegal financial activity. Authorities emphasized that enforcement actions will begin immediately after the deadline.
According to the announcement, violations may result in significant fines, website blocking, and in certain cases prison sentences of up to four years. Officials said the measures aim to strengthen consumer protection, reduce money laundering risks, and ensure full alignment with European Union regulatory standards.
Lithuania has emerged as a popular hub for crypto companies in recent years, but the introduction of stricter oversight marks a clear shift in policy. Analysts note that while smaller and unprepared platforms may exit the market, the changes are likely to favor larger players that are compliant with regulatory requirements.
