Lithuania is preparing to license crypto companies: details and plans
Date: 2024-04-04 Author: Henry Casey Categories: IN WORLD
Introduction of a new licensing regime
In a fresh interview, a representative of the Bank of Lithuania announced the introduction of a licensing system for crypto companies by June 2025. The move comes as part of a push to ensure tighter oversight and regulation of the cryptocurrency sector in the country.
It is planned that preparations for the launch of the licensing mechanism will begin in July 2024, which will allow six months to implement changes before the MiCA regulation comes into force in the European Union. This involves creating a regulatory framework and establishing licensing processes for cryptocurrency counterparties.
Changes in the cryptocurrency market
According to the data, there are about 580 crypto companies in Lithuania, but not all of them will be able to obtain a license in the future. A representative of the Bank of Lithuania expressed confidence that, under the pressure of high requirements, some companies may be forced to leave the market.
New Supervision Standards
A representative of the regulator explained the strict course towards tightening supervision as a necessity due to numerous cases of fraud and bankruptcies in the crypto industry. At the same time, he admitted that a license may be optional for those companies that have already registered in other EU countries.
Employee training and future plans
The regulator is actively preparing its employees so that they are ready for the new principles of working with cryptocurrency companies. Lithuania's plans to introduce a licensing regime reflect its desire to increase the level of oversight and security in the cryptocurrency space.
