Crypto License in Lithuania – Your Gateway to the EU Crypto Market
Last updated: 2025-03-10
Understanding MiCA and Its Impact On Your Business
The Markets in Crypto-Assets Regulation (MiCA) entered into force in June 2023, following its publication in the Official Journal of the European Union. MiCA is an essential development towards establishing a unified regulatory framework within the European Union (EU) for regulating and supervising the activities of the issuance, trading and provision of services in relation to crypto-assets. MiCA shall eventually replace the existing national regimes with its harmonized European framework.
Generally, starting from 30 December 2024, MiCA requires market participants seeking to provide crypto-asset services in the EU to obtain a Crypto-Asset Service Provider (CASP) license and comply with requirements related to customer asset protection, governance, conflict-of-interest management, and other regulatory obligations.
It is important to note that MiCA introduces a transitional regime (also referred to as a ‘transitional period’) for entities that provided crypto-asset services in accordance with applicable law before 30 December 2024. During this transitional period, these entities can continue operating under existing national frameworks while preparing to comply fully with MiCA. However, each EU Member State retains discretion to apply, shorten, or waive the transitional period. In Lithuania, for example, the transitional period for Virtual Asset Service Providers (VASPs) is set until 31 May 2025.
What is a Crypto-Asset Service Provider (CASP)?
Under MiCA, a CASP is a legal entity or undertaking that professionally provides one or more crypto-asset services and is licensed to do so in accordance with MiCA.
Crypto-asset services under MiCA include:
- Providing custody and administration of crypto-assets on behalf of clients;
- Operating a crypto-asset trading platform for crypto-assets;
- Exchanging crypto-assets for funds;
- Exchanging crypto-assets for other crypto-assets;
- Executing crypto-asset orders on behalf of clients;
- Placing of crypto-assets;
- Receiving and transmitting orders for crypto-assets on behalf of clients;
- Providing advice on crypto-assets;
- Providing portfolio management on crypto-assets;
- Providing transfer services for crypto-assets on behalf of clients.
Cross-Border Provision of Crypto-Asset Services
Once an entity secures the requisite CASP license, it gains the ability to provide crypto-asset services in multiple EU Member States. This passporting right enables CASPs to scale their operations efficiently under a single license issued, for example, in Lithuania, granting access to the entire European market.
It is important to note that entities benefiting from the transitional period do not enjoy passporting rights within the EU during that period, unless they obtained a CASP license.
Implications for Third-Country Firms
Non-EU crypto service providers seeking to offer crypto-asset services to the EU-based clients must carefully assess whether their planned activities trigger the need for a CASP license. This is particularly relevant when such firms solicit, promote, or market their services to clients in the EU.
Why Choose Lithuania As Your Licensing Jurisdiction?
Despite the regulatory tightening in 2023, Lithuania has remained home to one of the largest concentrations of VASPs in the EU. During the MiCA transitional period set by Lithuania, a substantial number of VASPs - 376 registered crypto exchange firms and 371 registered crypto wallet providers - continue to operate, further reinforcing Lithuania’s reputation as a key hub for crypto businesses preparing for MiCA compliance. While some firms may hold both registrations, this highlights Lithuania’s ability to attract versatile and ambitious players in the crypto space.
According to the Bank of Lithuania, the supervisor of financial market participants, the country remains one of the most attractive jurisdictions for companies in the financial sector. Foreign companies continue to take a keen interest in the development opportunities offered by the Lithuanian financial market.
How Can We Help?
Our team is prepared to assist both existing and new crypto market participants. We offer:
- comprehensive guidance on MiCA compliance;
- assistance with the preparation and submission of CASP licensing applications;
- direct support in liaising with the Bank of Lithuania, the supervisory authority responsible for issuing and overseeing MiCA licenses.
Ready to Expand Your Business Across Europe?
Contact us today to explore how our expertise can help you navigate MiCA and accelerate your European market entry.