The Bank of Lithuania and the Financial Crime Investigation Service (FCIS) have taken a major step in strengthening the regulatory framework for crypto-asset services. A newly signed cooperation agreement between the two institutions aims to enhance oversight, improve risk management, and support the implementation of the EU’s Markets in Crypto-Assets Regulation (MiCA), which came into force at the end of 2024.
Key Goals of the Agreement
The partnership focuses on:
- Information Sharing: Facilitating the exchange of insights and expertise.
- Joint Inspections: Ensuring compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) standards.
- Technical Assistance: Strengthening regulatory capabilities to address emerging challenges in the crypto sector.
“With MiCA set to regulate crypto markets across the EU, we need to ensure that only well-prepared companies offering quality services and managing risks effectively can operate,” said Gediminas Šimkus, Chair of the Board of the Bank of Lithuania.
Challenges in Lithuania’s Crypto Sector
Lithuania hosts over 300 registered crypto-asset companies, making it one of the leading countries in the EU in terms of crypto activity. However, an analysis by the Bank of Lithuania and FCIS revealed key risks, including:
- The presence of non-operational empty shell companies.
- Instances of fraud and connections to high-risk jurisdictions, including those recognized as terrorist states in Lithuania.
- Weak compliance with stricter AML/CTF requirements.
In November 2024, at the request of the FCIS, the Centre of Registers removed 300 companies from the register for failing to meet basic capital requirements of €125,000.
Preparing for MiCA Licensing
The MiCA regulation, which came into force at the end of 2024, requires crypto-asset service providers to obtain licences from the Bank of Lithuania to continue operating. To be eligible, applicants must:
- Submit comprehensive business plans with clear operational objectives.
- Provide evidence of compliance with AML/CFT standards.
- Fully disclose shareholder structures, income sources, and management details.
The Bank of Lithuania has emphasized that only entities demonstrating a genuine intent to operate and full readiness will be considered for licensing. Companies submitting incomplete or misleading information will face rejection.
Building a Safer and Transparent Crypto Market
This partnership between the Bank of Lithuania and FCIS underscores their commitment to fostering a secure and transparent crypto market. By addressing existing risks and ensuring strict compliance, Lithuania is poised to become a leading example of effective crypto regulation within the EU.
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 details, you can access the document here.
If you have any further questions – get in touch!
E-mail: martynas.kalvaitis@sintesi.lt; mobile phone: +370 656 96055.
