The post Lithuania Declares War on Unlicensed Crypto Firms as MiCA Enforcement Begins appeared first on Coinpedia Fintech News Lithuania is preparing for one ofThe post Lithuania Declares War on Unlicensed Crypto Firms as MiCA Enforcement Begins appeared first on Coinpedia Fintech News Lithuania is preparing for one of

Lithuania Declares War on Unlicensed Crypto Firms as MiCA Enforcement Begins

2025/12/26 18:03
4 min read
Lithuania MiCA crypto enforcement

The post Lithuania Declares War on Unlicensed Crypto Firms as MiCA Enforcement Begins appeared first on Coinpedia Fintech News

Lithuania is preparing for one of its toughest crypto enforcement actions yet, signaling a clear shift from regulatory tolerance to strict oversight. Starting January 1, 2026, crypto firms operating without a valid MiCA license will be treated as illegal, exposing hundreds of companies to fines, website blocks, and even criminal liability.

The move places Lithuania at the forefront of Europe’s push to turn MiCA from a framework on paper into active enforcement.

Deadline Set as Transition Period Ends

Lithuania’s central bank, Lietuvos Bankas, has confirmed that the transition period for crypto service providers expires on December 31. From that point onward, any exchange, wallet provider, or crypto platform serving users without MiCA authorization will be operating outside the law.

While more than 370 crypto-related entities are registered in the country, only around 120 are actively operating. Even more concerning for regulators, fewer than 10% of firms, roughly 30 companies, have applied for the required license so far. Authorities have warned that waiting any longer could leave businesses exposed to immediate enforcement action.

Enforcement Will Be Aggressive

Regulators have made it clear that consequences will be serious. Unlicensed firms may face financial penalties, forced shutdowns, website blocking, and, in severe cases, criminal charges carrying prison sentences of up to four years.

Lithuania’s central bank has urged companies that do not plan to seek a license to begin winding down operations immediately. Firms are expected to notify users, return customer funds, and provide clear instructions for transferring assets to other custodians or self-hosted wallets before services are terminated.

  • Also Read :
  •   New Crypto Rules in Spain: What Investors Need to Know for 2026
  •   ,

Why Lithuania Is Taking This Path

Lithuania wants to position itself as a “MiCA gateway” for compliant crypto businesses entering the European Union. Rather than acting as a permissive hub, the country is choosing to attract firms willing to operate under strict transparency, investor protection, and reporting standards.

Officials argue that tighter oversight will reduce fraud, improve trust, and align crypto services with traditional financial regulations. In their view, enforcement is necessary to protect consumers and the integrity of the financial system.

Crypto Market Sentiment Turns Cautious but Strategic

The immediate crypto sentiment around Lithuania’s decision is mixed. Smaller firms and offshore operators see the move as hostile, while regulated exchanges and institutional players largely welcome the clarity. Many in the industry view this as a broader European trend rather than an isolated event. As MiCA enforcement ramps up across the EU, crypto firms are increasingly forced to choose between compliance and exit. The uncertainty phase is ending.

Long-Term Impact on Lithuania’s Crypto Future

In the short term, Lithuania may see a sharp drop in the number of crypto firms operating locally. However, analysts believe the country could benefit long-term by becoming a trusted, regulated crypto jurisdiction.

If successful, Lithuania may attract banks, fintech firms, and institutional investors seeking a stable regulatory environment. While the crackdown may sting today, it could ultimately reshape the country into one of Europe’s most credible crypto hubs under MiCA’s new rulebook.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

bell icon Subscribe to News

FAQs

Will this affect crypto users outside Lithuania who use platforms registered there?

Yes. Platforms registered in Lithuania but serving users across the EU may lose the legal right to operate, potentially forcing users to withdraw funds or migrate accounts. Customers could face short-term disruptions even if they are not based in Lithuania.

What happens to customer funds if a platform is forced to shut down?

Funds are expected to be returned or transferred, but timelines and execution depend on each firm’s internal controls. Delays or disputes could arise if a company is already financially strained or poorly governed.

How might this change the type of crypto businesses choosing Lithuania in the future?

Firms focused on compliance, institutional clients, and long-term EU market access are more likely to stay or enter. Speculative, lightly regulated, or short-term operators may shift to non-EU jurisdictions instead.

Market Opportunity
Movement Logo
Movement Price(MOVE)
$0.02509
$0.02509$0.02509
+4.41%
USD
Movement (MOVE) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

How COAI’s price can rally by 45% after hitting THIS key resistance

How COAI’s price can rally by 45% after hitting THIS key resistance

The post How COAI’s price can rally by 45% after hitting THIS key resistance appeared on BitcoinEthereumNews.com. Journalist Posted: February 15, 2026 As the broader
Share
BitcoinEthereumNews2026/02/15 12:03
UK FCA Plans to Waive Some Rules for Crypto Companies: FT

UK FCA Plans to Waive Some Rules for Crypto Companies: FT

The post UK FCA Plans to Waive Some Rules for Crypto Companies: FT appeared on BitcoinEthereumNews.com. The U.K.’s Financial Conduct Authority (FCA) has plans to waive some of its rules for cryptocurrency companies, according to a Financial Times (FT) report on Wednesday. However, in another areas the FCA intends to tighten the rules where they pertain to industry-specific risks, such as cyber attacks. The financial watchdog wishes to adapt its existing rules for financial service companies to the unique nature of cryptoassets, the FT reported, citing a consultation paper published Wednesday. “You have to recognize that some of these things are very different,” David Geale, the FCA’s executive director for payments and digital finance, said in an interview, according to the report, adding that a “lift and drop” of existing traditional finance rules would not be effective with crypto. One such area that may be handled differently is the stipulation that a firm “must conduct its business with integrity” and “pay due regard to the interest of its customers and treat them fairly.” Crypto companies would be given less strict requirements than banks or investment platforms on rules concerning senior managers, systems and controls, as cryptocurrency firms “do not typically pose the same level of systemic risk,” the FCA said. Firms would also not have to offer customers a cooling off period due to the voltatile nature of crypto prices, nor would technology be classed as an outsourcing arrangement requiring extra risk management. This is because blockchain technology is often permissionless, meaning anyone can participate without the input of an intermediary. Other areas of crypto regulation remain undecided. The FCA has plans to fully integrate cryptocurrency into its regulatory framework from 2026. Source: https://www.coindesk.com/policy/2025/09/17/uk-fca-plans-to-waive-some-rules-for-crypto-companies-ft
Share
BitcoinEthereumNews2025/09/18 04:15
Roundhill’s Election-Event Contract ETFs Could Be Groundbreaking

Roundhill’s Election-Event Contract ETFs Could Be Groundbreaking

Roundhill Investments, a US-based ETF issuer, has moved to bring six exchange-traded funds tied to event contracts that bet on the outcome of the 2028 US presidential
Share
Crypto Breaking News2026/02/15 12:36