Crypto companies in Lithuania face exodus as regulators tighten rules

New regulations are expected to significantly reduce the Lithuanian crypto sector.

Lithuanian regulators are set to clamp down on crypto companies with a new licensing process being drawn up by June 2025.

According to Bloomberg, the new regime is expected to significantly reduce the Lithuanian crypto sector, despite it being a burgeoning hub for such firms.

There are currently around 580 registered crypto firms in Lithuania, but many are not expected to be able to meet the incoming licensing requirements, forcing them to close.

The new rules are intended to shore up anti-money laundering protections and protect crypto users from scams.

“The crypto industry failed in a lightly-regulated environment,” Bank of Lithuania board member Simonas Krepsta told Bloomberg. “We have quite a lot of evidence of that in the US, other European countries but also Lithuania. We saw quite a number of failures, embezzlement cases and similar which were quite a blow for the industry.”

Lithuania’s more robust anti-money laundering protocols will be introduced alongside the pan-European EU Markets in Crypto-Assets (MiCA) regulations, which are due to come into effect in January 2025.

The Lithuanian central bank has been preparing for the transition by rolling out training on crypto business models and launching a pre-assessment phase.

The country is reported to aiming to create a secure and reputable crypto environment, even if it is smaller than that it has already.

MiCA, which was first introduced in 2020, is hoped to create a stable regulatory framework for the use of cryptocurrencies in Europe.

Under the new rules companies will be required by law to publish comprehensive White Papers featuring technological roadmaps and more.

It is the first comprehensive crypto-specific regulation of its type in the world, leaving the US and China to catch up. Although it may set the standard for future regulatory regimes.

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Written by Hannah

Hannah is editor of CryptoGamblingNews.com and has almost 15 years experience in journalism, including reporting on law, TV, gambling, crypto and alternative finance. She is particularly interested in the future of money, the transition of gambling from 'vice' industry to mainstream entertainment and the application of blockchain technology to wider society.

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