The EU may destroy hundreds of unlicensed cryptocurrency companies next week

Lithuania is preparing to introduce one of the toughest cryptocurrency regulations in Europe, warning that hundreds of unregistered companies could face fines, website blocking, and even criminal liability as early as January 1. The country’s central bank has announced that any platform that continues to operate without a license in accordance with the MiCA after December 31 will be operating illegally.

According to the Bank of Lithuania, more than 370 crypto companies are registered in the country, but only about 120 of them are active and report profits. Less than 10% of operators — approximately 30 companies — have applied for a MiCA license. The transitional period for obtaining permits ends at the end of 2025, after which the regulator will start applying harsh measures ranging from monetary fines to criminal prosecution with possible prison terms of up to four years.

Dalia Juskevičienė, Head of the Investment Services Supervision Department of the Bank of Lithuania, urged companies that do not plan to continue operating to warn customers in advance and ensure that their assets are transferred to other custodians or to their own wallets. The regulator emphasized that the control will apply not only to operating platforms but also to registered companies that maintain websites or crypto wallets.

The introduction of these rules turns Lithuania from a liberal crypto hub into a «gateway» for companies that comply with MiCA requirements. A similar strategy is being developed by neighboring Latvia, which is striving to become a European fintech center. Bank of Latvia Governor Martins Kazaks said that the country has the specialists and the necessary financial infrastructure to develop the crypto sector within European standards.

Against the backdrop of these events, major international exchanges, including KuCoin and Coinbase, have already obtained or are preparing to obtain licenses to meet the new requirements. Experts note that Lithuania’s actions are in line with the global trend towards tighter control over the cryptocurrency market, similar to the new regulatory measures in the UAE. A few days before the MiCA rules come into force, the country is actually launching a new era of the European crypto market — an era of total compliance and transparency.