Lithuania’s central bank, Lietuvos bankas, urged virtual currency exchange and depository wallet operators that do not intend to seek authorization under the EU’s MiCA framework to begin an orderly wind-down of their operations. The transitional period for obtaining licenses ends December 31, 2025.
The guidance targets operators included in lists maintained by the State Enterprise Centre of Registers who do not intend to provide services under Regulation (EU) No 2023/1114 on markets in crypto-assets. After the transitional period expires, accepting new clients and custody of crypto-assets without proper licensing will constitute illegal financial activities.
Operators Must Execute Client Communication Plans
Dalia Juškevičienė, head of the Investment Services and Undertakings Supervision Division, stated that market participants not planning to continue operations should launch active communication campaigns. All clients require proper and timely information regarding the winding-down process.
Operators must provide information on winding-down timeframes and detailed instructions for transferring funds and crypto-assets. Clients need notification about the possibility of exchanging crypto-assets for funds that operators would transfer to custodians at the client’s instruction.
Lietuvos bankas stated that operators must ensure information reaches clients through multiple channels rather than a single channel of communication. Operators should complete all steps to return client assets before losing authorization to provide crypto-asset services.
Lithuania Punishes Unlicensed Financial Services
The Criminal Code of the Republic of Lithuania establishes that providing financial services without required licenses is punishable by public works, fines, restriction of liberty, or imprisonment for up to four years. Lietuvos bankas holds the authority to block websites of illegal financial service providers.
The central bank publishes information on persons illegally offering or providing financial services in Lithuania and declares such activities illegal. Lietuvos bankas notifies relevant law enforcement authorities of facts indicating potentially criminal activities.
Currently, approximately 30 companies have submitted applications to Lietuvos bankas for crypto-asset service provider licenses. The bank is assessing 10 applications. More than 370 companies declared to the State Enterprise Centre of Registers that they provide crypto-asset services, but only 120 actually operate by generating revenue and submitting financial statements.
Related: Italy’s Consob Sets Strict December 30 Deadline for Crypto Firms to Enter MiCA Regime
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.