Against the backdrop of increasingly strict global cryptocurrency regulation, Lithuania has rapidly risen to become a key hub in the European cryptocurrency industry with its forward-looking regulatory thinking and efficient compliance system, attracting the attention of many cryptocurrency enterprises.
As one of the earlier EU member states to lay out a legal framework for cryptocurrencies, Lithuania has demonstrated a significant first-mover advantage in the regulatory aspect. Long before the EU’s Crypto Asset Markets Regulation (MiCA) was officially implemented, Lithuania had already established a dual-track licensing system for virtual currency trading platforms (VCESP) and wallet service providers (VCWSP).
This system not only delineates clear business boundaries for enterprises, but also builds a complete risk prevention and control mechanism through the deep integration with anti-money laundering/Anti-terrorist financing (AML/CFT) rules. With the full implementation of MiCA in 2025, Lithuania has promptly aligned its domestic regulations with the unified framework of the European Union, forming a “dual compliance guarantee”. After obtaining a local license in Lithuania, enterprises can freely conduct business within the 27 member states in accordance with the EU’s “Passport Principle”, significantly reducing the legal costs of cross-border operations.
In terms of the market access mechanism, Lithuania has also performed well. Compared with traditional financial regulatory jurisdictions, its license application process is extremely efficient. According to the practical experience of Mankiw Law Firm, the entire process from company registration to license approval for an enterprise only takes 3 to 6 months. This efficient process benefits from the Lithuanian government’s strong support for the fintech industry. The country has specially established a digital government affairs platform. Enterprises can submit application materials online and connect with regulatory authorities such as the Central Bank of Lithuania and the Financial Crime Investigation Service through a “single window”. If an enterprise completes the construction of its compliance system ahead of schedule, the approval cycle can be further shortened to 2 to 4 months.
Lithuania is also highly attractive in terms of compliance costs. In terms of financial compliance, the country has set flexible capital requirements. According to the new regulations after the implementation of MiCA, the minimum registered capital for enterprises providing crypto consulting services is only 50,000 euros, for those providing custody wallets and deposit and withdrawal services, it is 125,000 euros, and for those involving cryptocurrency trading platforms, it is 150,000 euros. The tax policy is equally impressive. The corporate income tax rate is 15%, and undistributed profits do not require additional tax payment.
The types of cryptocurrency licenses in Lithuania are diverse and applicable in a wide range of scenarios. Starting from 2025, with the implementation of the regulatory framework at the EU level, Lithuania has introduced MICA-compatible licenses, integrating the original two types of licenses into the “Crypto Asset Service Provider (CASP)” license, covering four major business categories: cryptocurrency trading services, crypto asset custody and management, investment consulting and information services, and payment and settlement services.
Of course, there are also strict compliance requirements for applying for a cryptocurrency license in Lithuania. In terms of the establishment of the legal framework, the applicant entity needs to set up a limited liability company in Lithuania, complete the registration of the company entity, and pass the qualification review of shareholders and management. In terms of finance and capital, the corresponding registered capital requirements should be met and the capital should be continuously sufficient. The construction of an operational compliance system is even more crucial, covering multiple important links such as AML/CFT/ sanctions compliance systems, risk management systems, data protection, and GDPR compliance.
The entire process of license application mainly includes the stages of preparation and planning, company establishment and bank account opening, license application and review, continuous compliance and license maintenance, etc. Each stage has specific and detailed requirements and procedures, and enterprises need to prepare and respond carefully.
Although Lithuania has a clear advantage in the development of the cryptocurrency industry, there are also some potential challenges, such as language and cultural barriers, complex multi-level regulation, and high qualification requirements for AML officials. However, professional institutions like Mankiw Law Firm can offer customized license application services and localized compliance system construction and other professional assistance to enterprises, helping them build a secure and competitive business ecosystem on the fertile ground of cryptocurrency development in Lithuania and secure a place in the global cryptocurrency market.
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