Strengthening Crypto-Asset Regulation in Lithuania: The Impact of MiCA on Market Integrity and Consumer Protection

2024-06-27

The upcoming Markets in Crypto-Assets (MiCA) regulation in Lithuania represents a significant step towards establishing a clear regulatory framework for cryptocurrencies and other digital assets within the country.

The Bank of Lithuania suggests, that one of the primary risks associated with the current unregulated environment is the prevalence of suspicious companies. These entities often use unusual addresses, instantly raising suspicion and creating a facade of legitimacy. This tactic is frequently used to deceive investors and evade regulatory scrutiny. Also, the concentration of many companies at a single address can be a fraudulent activity indicator. Under the new MiCA framework, authorities will have enhanced powers to scrutinize these registrations, conduct thorough background checks, and enforce compliance measures.

Also, The Bank of Lithuania regularly conducts inspections of electronic money institutions and payment service providers to ensure these companies comply with existing laws and meet anti-money laundering and counter-terrorist financing requirements. These inspections help identify and rectify control and oversight deficiencies, preventing potential financial risks.

The MiCA regulation will introduce comprehensive rules on transparency, governance, and disclosure for crypto-asset issuers and service providers, including mandatory whitepapers, consumer protection measures, and guidelines on market abuse. With these regulations, the Bank of Lithuania expects more than half of the currently operating crypto companies to cease their services, aiming to create a safer and more trustworthy environment for digital asset transactions.


Sintesi Consulting can help you with:
– Complying with the regulative requirements of the Bank of Lithuania
– Acquire the MiCA license for your institution
– Legal issues, prepare necessary documents and represent your company at the Bank of Lithuania


For more detailed information on the article, please refer to the original sources:
– Article about fictive crypto companies in Lithuania.
– Requirements for MiCA license.

If you have any further questions – get in touch!
E-mail: martynas.kalvaitis@sintesi.lt; mobile phone: +370 656 96055.

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