The Bank of Lithuania (Lietuvos bankas) has issued a strong call for virtual currency exchange operators and depository virtual currency wallet operators who do not intend to apply for a crypto-asset service provider license to begin the process of winding down their operations immediately, ahead of the 31 December 2025 transitional deadline under the EU’s Markets in Crypto-Assets Regulation (MiCA).

In newly issued guidance, Lietuvos bankas advises all operators listed with the State Enterprise Centre of Registers, and not planning to continue operations under Regulation (EU) No 2023/1114, to take urgent action to protect investors, uphold market transparency, and ensure an orderly exit.

“Participants of the crypto-asset services market that do not plan to continue their operations should not delay and must launch active communication campaigns to ensure that all of their clients are properly and timely informed of the winding down,”

said Dalia Juškevičienė, Head of the Investment Services and Undertakings Supervision Division at Lietuvos bankas.

“Clients should receive clear information on the timeframe, along with detailed instructions on how to transfer their funds and crypto-assets.”

Lietuvos bankas emphasises that clients must also be notified of the option to convert their crypto-assets into fiat currency, which may then be transferred to a custodian, based on client instruction.

Operators are urged to make every effort to ensure effective communication and should not limit outreach to a single announcement.

Information should be made available via company websites, social media platforms, and direct communication with known client contacts.

Firms must ensure that all client assets are returned before their authorisation to provide crypto-asset-related services expires.

This includes transferring custody to crypto-asset or cash custodians designated by clients, or moving crypto-assets to self-hosted wallets as directed by the clients.

After 31 December 2025, providing crypto-asset services in Lithuania without a license issued under MiCA will constitute illegal financial activity.

Under the Criminal Code of the Republic of Lithuania, unlicensed provision of financial services is punishable by public works, fines, restriction of liberty, or imprisonment of up to four years.

Furthermore, Lietuvos bankas holds the authority to block access to websites suspected of illegally offering financial services.

The Bank also publishes information regarding unlicensed financial service providers and refers any suspected criminal activity to relevant law enforcement bodies.

To date, around 30 companies have submitted license applications to Lietuvos bankas, with 10 currently under assessment.

Meanwhile, although over 370 entities have registered with the State Enterprise Centre of Registers as crypto-asset service providers, only 120 have demonstrated active operations by submitting financial statements and generating revenue.

Featured image credit: Edited by Fintech News Baltic, based on image by EyeEm via Freepik