Lithuania Tightens Crypto License Requirements: Service Providers Face 2025 Compliance Deadline

Lithuania’s regulatory authorities have escalated their oversight of the crypto industry, mandating that all crypto asset service providers secure a MiCA-regulated CASP license before the year-end deadline of December 31, 2025. Failure to comply means service providers must immediately suspend onboarding new clients, discontinue custody of client holdings, and facilitate the orderly return of all digital assets and funds.

Current Compliance Status Reveals Significant Gap

The regulatory landscape shows a stark contrast between declared and active operators. According to the latest data from mid-July 2025, approximately 370 entities have registered as crypto service providers with Lithuania’s National Enterprise Register. However, the actual operational picture is far more limited—only 120 of these firms are genuinely active and regularly submit the required financial documentation. This discrepancy highlights the challenge the central bank faces in enforcing standards across the sector.

License Application Progress Remains Slow

The transition toward full MiCA compliance is progressing at a measured pace. Of the companies seeking legitimacy through the formal licensing process, 30 have submitted applications to date, though 10 of these remain under regulatory review. This relatively modest number suggests that many existing service providers may still be evaluating their compliance pathway or reassessing their business viability under the new regulatory framework.

What This Means for the Industry

This licensing mandate represents Lithuania’s commitment to bringing the crypto sector into a standardized, regulated environment. Service providers have roughly 18 months to navigate the application process and secure their CASP credentials. Those unable or unwilling to obtain licenses face mandatory exit from the market, fundamentally reshaping the landscape of crypto asset services in Lithuania.