The post Lithuania Declares War on Unlicensed Crypto Firms as MiCA Enforcement Begins appeared first on Coinpedia Fintech News Lithuania is preparing for one ofThe post Lithuania Declares War on Unlicensed Crypto Firms as MiCA Enforcement Begins appeared first on Coinpedia Fintech News Lithuania is preparing for one of

Lithuania Declares War on Unlicensed Crypto Firms as MiCA Enforcement Begins

2025/12/26 18:03
4 min read
Lithuania MiCA crypto enforcement

The post Lithuania Declares War on Unlicensed Crypto Firms as MiCA Enforcement Begins appeared first on Coinpedia Fintech News

Lithuania is preparing for one of its toughest crypto enforcement actions yet, signaling a clear shift from regulatory tolerance to strict oversight. Starting January 1, 2026, crypto firms operating without a valid MiCA license will be treated as illegal, exposing hundreds of companies to fines, website blocks, and even criminal liability.

The move places Lithuania at the forefront of Europe’s push to turn MiCA from a framework on paper into active enforcement.

Deadline Set as Transition Period Ends

Lithuania’s central bank, Lietuvos Bankas, has confirmed that the transition period for crypto service providers expires on December 31. From that point onward, any exchange, wallet provider, or crypto platform serving users without MiCA authorization will be operating outside the law.

While more than 370 crypto-related entities are registered in the country, only around 120 are actively operating. Even more concerning for regulators, fewer than 10% of firms, roughly 30 companies, have applied for the required license so far. Authorities have warned that waiting any longer could leave businesses exposed to immediate enforcement action.

Enforcement Will Be Aggressive

Regulators have made it clear that consequences will be serious. Unlicensed firms may face financial penalties, forced shutdowns, website blocking, and, in severe cases, criminal charges carrying prison sentences of up to four years.

Lithuania’s central bank has urged companies that do not plan to seek a license to begin winding down operations immediately. Firms are expected to notify users, return customer funds, and provide clear instructions for transferring assets to other custodians or self-hosted wallets before services are terminated.

  • Also Read :
  •   New Crypto Rules in Spain: What Investors Need to Know for 2026
  •   ,

Why Lithuania Is Taking This Path

Lithuania wants to position itself as a “MiCA gateway” for compliant crypto businesses entering the European Union. Rather than acting as a permissive hub, the country is choosing to attract firms willing to operate under strict transparency, investor protection, and reporting standards.

Officials argue that tighter oversight will reduce fraud, improve trust, and align crypto services with traditional financial regulations. In their view, enforcement is necessary to protect consumers and the integrity of the financial system.

Crypto Market Sentiment Turns Cautious but Strategic

The immediate crypto sentiment around Lithuania’s decision is mixed. Smaller firms and offshore operators see the move as hostile, while regulated exchanges and institutional players largely welcome the clarity. Many in the industry view this as a broader European trend rather than an isolated event. As MiCA enforcement ramps up across the EU, crypto firms are increasingly forced to choose between compliance and exit. The uncertainty phase is ending.

Long-Term Impact on Lithuania’s Crypto Future

In the short term, Lithuania may see a sharp drop in the number of crypto firms operating locally. However, analysts believe the country could benefit long-term by becoming a trusted, regulated crypto jurisdiction.

If successful, Lithuania may attract banks, fintech firms, and institutional investors seeking a stable regulatory environment. While the crackdown may sting today, it could ultimately reshape the country into one of Europe’s most credible crypto hubs under MiCA’s new rulebook.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

bell icon Subscribe to News

FAQs

Will this affect crypto users outside Lithuania who use platforms registered there?

Yes. Platforms registered in Lithuania but serving users across the EU may lose the legal right to operate, potentially forcing users to withdraw funds or migrate accounts. Customers could face short-term disruptions even if they are not based in Lithuania.

What happens to customer funds if a platform is forced to shut down?

Funds are expected to be returned or transferred, but timelines and execution depend on each firm’s internal controls. Delays or disputes could arise if a company is already financially strained or poorly governed.

How might this change the type of crypto businesses choosing Lithuania in the future?

Firms focused on compliance, institutional clients, and long-term EU market access are more likely to stay or enter. Speculative, lightly regulated, or short-term operators may shift to non-EU jurisdictions instead.

Market Opportunity
Movement Logo
Movement Price(MOVE)
$0.02444
$0.02444$0.02444
-0.16%
USD
Movement (MOVE) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Perpetual DEX in testing with cross‑chain liquidity and ADL

Perpetual DEX in testing with cross‑chain liquidity and ADL

The post Perpetual DEX in testing with cross‑chain liquidity and ADL appeared on BitcoinEthereumNews.com. Sunperp, a new perpetual DEX being tested on the Tron blockchain, promises millisecond executions, cross-chain liquidity aggregation, and an integrated auto-deleveraging (ADL) system. Justin Sun reshared the announcement on X, inviting users to try it and highlighting dedicated incentives, while numerous economic details and operational metrics remain to be confirmed. According to the data collected by on-chain analysts and industry reports, in May 2025 TRON hosted over 75 billion USDT, with the network recording over 8.3 million daily transactions and approximately 306 million active accounts, a context that justifies the interest in USDT-collateralized derivatives. Market analysts following perpetual DEX also note that the massive availability of USDT on TRON facilitates cross-chain arbitrage operations and reduces costs for market makers. What is Sunperp and what it brings differently to Tron Sunperp is a platform perp DEX that uses USDT as collateral, with profits and losses calculated in USDT. The architecture separates matching, executed off-chain to maximize speed, from settlement, recorded on-chain to ensure transparency of trading results. In this context, the debut announcement was originally reported by Jamie Redman; the team also states that, while in the testing phase, the core contracts are non-upgradable. Main Technical Features Order types: market, limit (with FOK – Fill-or-Kill, GTC – Good-Till-Cancelled, and IOC – Immediate-or-Cancel modes), post-only orders, plan orders, trailing, and TWAP (Time-Weighted Average Price). Use of multi-source oracles to determine the mark price employed in the calculation of profits and liquidations. Primary collateral: USDT, with P&L calculated in the same currency. Core contracts declared non-upgradable in an environment still in testing. Cross-chain liquidity: less slippage and tighter spreads The protocol claims to aggregate liquidity flows from various networks in order to increase market depth and improve order execution, thereby reducing slippage and spreads in large-size trades. However, the actual effect will depend…
Share
BitcoinEthereumNews2025/09/22 17:20
Asia tackles wallet fraud; Egypt boosts digital finance

Asia tackles wallet fraud; Egypt boosts digital finance

The post Asia tackles wallet fraud; Egypt boosts digital finance appeared on BitcoinEthereumNews.com. Homepage > News > Finance > Asia tackles wallet fraud; Egypt boosts digital finance Three of Asia’s leading payment service providers have forged a partnership to improve the protection of digital wallets amid a surge of payment fraud by bad actors in the region. The alliance, dubbed Digital Wallet Guardian Partnership, comprises Singapore-based Ant International, AlipayHK, and Malaysia-based TNG eWallet. The collaboration between these three payment behemoths will leverage EasySafePay 360, an artificial intelligence (AI)-powered account protection solution. EasySafePay 360, the first phase of the partnership, will provide digital wallet service providers in the region with a plug-and-play solution to prevent account takeover by bad actors. The solution leans on an automated approval system for user verification that offers high accuracy without compromising efficiency. Furthermore, users of the EasySafePay 360 solution will have access to a money-back guarantee as an added layer of protection. Ant International disclosed that it will provide full compensation on all authorized transactions, demonstrating its faith in EasySafePay 360’s capabilities. Digital wallet service providers keen on integrating EasySafePay 360 into their operations can access customizable tools to smooth the process. After integrating the solution, consumers can make payments without being redirected to a separate browser or mobile application for payment confirmation. The trio disclosed that seamlessly eliminating the redirection requirement has the potential to improve merchant conversion rates by 10%. To achieve its objectives, the trio will also use emerging technologies, knowledge-sharing, collaboration, and stakeholder engagement. “We safeguard our 4.5 million active users with 24/ AI monitoring, customizable protections, and regular anti-fraud tips,” said AlipayHK CEO Venetia Lee. “By advancing our multi-layered security and working with partners on risk management, we’re committed to making digital payments in Hong Kong both secure and convenient.” Leading the way with digital payments Given Asia’s standing as the fastest-growing region…
Share
BitcoinEthereumNews2025/09/22 11:02
Over 260,000 Chrome users hit by 30 fake AI extensions stealing browsing & email data

Over 260,000 Chrome users hit by 30 fake AI extensions stealing browsing & email data

Tens of thousands of people have downloaded what they believed were useful AI tools for their browsers, only to give hackers a direct path into their most private
Share
Cryptopolitan2026/02/13 03:20