2025-07-18
Lietuvos bankas: Crypto-asset service providers that do not intend to continue their operations must ensure smooth winding down
Lietuvos bankas urges virtual currency exchange operators and depository virtual currency wallet operators (hereinafter – the operators) that do not plan to apply for a licence of a crypto-asset service provider not to wait until the end of the transitional period and take all possible steps now to ensure that the winding down is smooth.
To protect the interests of investors and ensure the transparency and integrity of the crypto-asset market, Lietuvos bankas has issued guidance to operators included in the lists maintained by the State Enterprise Centre of Registers who do not intend to provide services according to the procedure laid down in Regulation (EU) No 2023/1114 of the European Parliament and of the Council on markets in crypto-assets (hereinafter referred to as the MiCA).
“Participants of the crypto-asset services market that do not plan to continue their operations should not delay and launch active communication campaigns to ensure that all of their clients are properly and timely informed of the winding down. Clients should be provided with information on the timeframe for winding down, detailed instructions on how to transfer funds and crypto-assets,” says Dalia Juškevičienė, head of the Investment Services and Undertakings Supervision Division of Lietuvos bankas.
She points out that clients must also be informed about the possibility of exchanging their crypto-assets for funds, which the operators would transfer to the custodian at the clients’ instruction.
Lietuvos bankas states that operators must make every effort to ensure that the information reaches the clients and not limit themselves to a one-off communication. Information should be published on the websites of these market participants, their social media accounts and sent to known client contacts.
Operators should take all possible steps to ensure that assets belonging to their clients are returned before they are no longer authorised to provide crypto-asset-related services. These market participants should promptly transfer custody of client assets to crypto-asset and/or cash custodians designated by the clients or transfer crypto-assets of the clients to designated self-hosted wallets.
The transitional period for obtaining a licence of a crypto-asset service provider will end on 31 December 2025 in Lithuania. After the end of the transitional period, both the acceptance of new clients and custody of crypto-assets as well as the provision of other crypto-asset services without a licence issued according to the procedure laid down in the MiCA will be considered illegal financial activities.
The Criminal Code of the Republic of Lithuania provides that the provision of financial services without the required licence is punishable by public works or a fine, by restriction of liberty or imprisonment for up to four years. In addition, Lietuvos bankas is entitled to block the website of a provider of illegal financial services if it has reason to suspect that financial services are being offered and/or provided illegally.
Lietuvos bankas makes public information on persons who illegally offer and/or provide financial services in the Republic of Lithuania and declares that the activities of such persons are illegal. In addition, Lietuvos bankas notifies the relevant law enforcement authorities of any facts indicating potentially criminal activities.
Currently, about 30 companies have applied to Lietuvos bankas for a licence of a crypto-asset service provider and 10 applications are being assessed.
More than 370 companies have declared to the State Enterprise Centre of Registers that they provide crypto-asset services but only 120 of them actually operate by generating revenue and submitting financial statements.