Crypto Overview in Lithuania

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Lithuania defines virtual currency as a digital instrument that does not carry the legal status of currency or money, is not authorised or guaranteed by a central bank, but is accepted by individuals or entities as a medium of exchange that can be transferred, stored, sold, exchanged, and invested electronically. Cryptocurrencies are legal to hold, trade, and use in Lithuania, but they are not legal tender.

For tax purposes, virtual currency is classified as property, and income from crypto disposals is taxed under the same rules that apply to other property sales. Since 30 December 2024, EU Regulation (EU) 2023/1114, the Markets in Crypto-Assets Regulation (MiCA), provides the primary classification framework, dividing crypto-assets into three categories: utility tokens, asset-referenced tokens, and e-money tokens.

Lithuania’s regulatory trajectory is among the most dramatic in the EU. The country attracted over 850 registered crypto companies by late 2022 under a light-touch registration regime, then progressively tightened standards through capital requirements, AML officer mandates, and the full implementation of MiCA, becoming one of the bloc’s most strictly enforced jurisdictions by 2025.

Tax Treatment

Lithuania does not have a separate capital gains tax. Gains from crypto disposals are treated as personal income. Individual traders benefit from a non-taxable threshold of EUR 2,500 per year on capital gains from the sale of personal assets. Income above this threshold is subject to a 15% personal income tax rate. When total non-employment income (including dividends, interest, and crypto gains) exceeds approximately EUR 228,000 in a tax year, a higher rate of 20% applies to the portion above that ceiling.

Mining income is taxable upon receipt at fair market value. Hobby miners pay the standard 15% rate; professional miners operating as self-employed individuals may deduct electricity and equipment costs as business expenses. Staking rewards and airdrops are taxed at 15% based on fair market value at the time of receipt. Buying crypto with fiat, holding, and wallet-to-wallet transfers are not taxable events. Crypto-to-crypto swaps are taxable disposals and must be declared to the State Tax Inspectorate (VMI). From 1 January 2026, progressive personal income tax rates replace the flat structure.

Businesses pay a standard 15% corporate income tax, with a reduced 5% rate available to small companies with fewer than ten employees and gross annual income below EUR 300,000. Crypto-to-fiat exchanges are exempt from VAT under the EU Court of Justice ruling in the Hedqvist case, which Lithuania applies directly.

Regulatory Oversight

Lithuania operates a dual-regulator model for crypto. Lietuvos bankas (Bank of Lithuania) serves as the primary authority for CASP licensing and prudential supervision under MiCA, handling fit-and-proper assessments, capital adequacy oversight, and ongoing conduct supervision. The Financial Crime Investigation Service (FCIS, known in Lithuanian as FNTT), a law enforcement agency under the Ministry of the Interior, supervises AML/CFT compliance, receives suspicious activity reports via the goAML system, and conducts enforcement actions against non-compliant entities. The FCIS formally classifies both VASP and electronic money institution sectors as very high-risk for money laundering and terrorist financing.

Business Environment

Banking Relationships

Since 1 January 2025, every licensed CASP must hold a bank account with a Lithuanian bank or a foreign bank that has a Lithuanian branch. Obtaining banking services can be challenging: banks have increased scrutiny of fintech and crypto clients following tightened supervision from both the Bank of Lithuania and EU authorities. Significant enforcement actions in recent years, including fines against electronic money institutions for AML violations, have made banks more cautious across the fintech sector. Lithuanian CASPs benefit from SEPA access through the Bank of Lithuania’s CENTROlink settlement system, which connects payment institutions and e-money institutions directly to the euro payment infrastructure.

Innovation Support

Lithuania has positioned itself as a fintech-friendly jurisdiction with several notable initiatives. The Bank of Lithuania developed LBChain, described as the world’s first blockchain-based sandbox created by a financial market regulator, allowing fintech companies and startups to test blockchain-based solutions in a controlled environment. In July 2020, the Bank of Lithuania issued LBCOIN, the world’s first blockchain-based digital collector coin, built on the NEM public blockchain as a practical experiment in digital currency issuance.

The Bank of Lithuania also operates a Newcomer Programme, a one-stop consultation service for financial market participants seeking licensing, which won the Fintech RegTech Global Award in 2023. Lithuania hosts over 280 active fintech companies serving more than 30 million customers across the EU. A member of the Bank of Lithuania’s board chairs the BIS Central Bank Digital Currencies working group, reflecting the country’s active role in shaping international standards.

Crypto License in Lithuania

Lithuania operates under the EU MiCA framework, with the Bank of Lithuania as the competent authority for Crypto-Asset Service Provider (CASP) authorisation under MiCA Title V. The CASP licensing regime became operational on 30 December 2024, replacing the previous Virtual Asset Service Provider (VASP) registration system that had operated under the Law on the Prevention of Money Laundering and Terrorist Financing since 2020. A Lithuanian CASP licence carries EU passporting rights, enabling authorised firms to provide services across all 27 EU member states and the wider European Economic Area without separate national approvals.

Licensing Requirements

Applicants must be incorporated as a Lithuanian private limited liability company (UAB). Capital requirements are tiered by service class: Class 1 (EUR 50,000) covers order reception and execution, placement, portfolio management, and advisory services; Class 2 (EUR 125,000) adds custody and administration of crypto-assets, fiat-to-crypto exchange, and crypto-to-crypto exchange; Class 3 (EUR 150,000) encompasses all services plus operation of a crypto-asset trading platform.

All directors, key executives, and beneficial owners must pass fit-and-proper assessments covering reputation, competence, and source-of-funds verification. Applicants must appoint a dedicated AML compliance officer who is a permanent resident of Lithuania. Internal policies are required for AML/CFT, risk management, business continuity, ICT security, and conflicts of interest. From 1 January 2025, a Lithuanian bank account (or an account with a foreign bank holding a Lithuanian branch) is mandatory for each licensed CASP. The Bank of Lithuania also applies the Digital Operational Resilience Act (DORA) requirements to licensed entities.

Authorised Activities

A CASP licence authorises one or more of the following services depending on the approved class: custody and administration of crypto-assets on behalf of clients; operation of a trading platform; exchange of crypto-assets for fiat currency; exchange of crypto-assets for other crypto-assets; execution of orders on behalf of clients; placement of crypto-assets; reception and transmission of orders; portfolio management; and investment advice in relation to crypto-assets. Firms also need a separate Payment Institution licence to issue or manage electronic money tokens (EMTs). As of December 2025, dual licensing (CASP plus Payment Institution) has become the norm for firms offering payment-adjacent crypto services.

Application Process and Timeline

The application process involves a pre-application phase, documentation preparation, and a formal review period of up to 65 working days once the Bank of Lithuania deems the application complete. In practice, the total timeline typically runs three to six months. The Bank of Lithuania has applied strict standards throughout 2025, with industry reports indicating a high rejection rate driven by common deficiencies: inadequate source-of-funds disclosure for shareholders, poor documentation quality, and insufficient management competency. By 31 December 2025, three CASP licences had been granted: Robinhood Europe, UAB (the first, in June 2025), CoinGate (UAB Decentralized, 16 December 2025), and Nuvei Liquidity (17 December 2025). CoinGate was the first homegrown Lithuanian company to receive the licence.

Legacy VASPs registered before 30 December 2024 operated under a transitional period that expired on 31 December 2025. Entities that did not secure a CASP licence by that date were required to cease operations. The Lithuanian Parliament extended the original June 2025 transitional deadline to 31 December 2025 via amendments approved in May 2025.

Market Characteristics

Adoption Patterns

Lithuania’s crypto market has undergone a significant contraction driven by regulatory tightening. At its peak in late 2022, approximately 850 crypto companies held VASP registrations, attracted by what was then a low-cost, light-touch regime. The introduction of a EUR 125,000 capital requirement, a Lithuanian-resident AML officer mandate, and Travel Rule obligations in 2024 triggered a wave of deregistrations, with over 300 entities exiting the register in November 2024 alone. Many had been dormant shells where the cost of maintaining registration jumped from a few thousand euros to over EUR 125,000. Research tracking deregistrations found that more than 30 former Lithuanian VASPs relocated outside the EU entirely, while Poland, Estonia, Cyprus, and Croatia were among the most common EU destinations.

Industry Focus

Lithuania’s remaining crypto industry is concentrated among well-capitalised, compliance-oriented operations able to meet MiCA’s demanding standards. The country’s fintech infrastructure, including SEPA access via CENTROlink and a developed pool of compliance and legal talent, supports firms that prioritise regulatory standing. Notable presences include Robinhood Europe, UAB, which holds both a MiCA CASP licence and an A-category MiFID brokerage licence from the Bank of Lithuania, enabling it to offer an integrated crypto and securities platform across the EU and EEA. Revolut Bank AB is headquartered in Vilnius and holds an electronic money institution licence from the Bank of Lithuania; it obtained its MiCA CASP authorisation through the Cyprus Securities and Exchange Commission in October 2025. CoinGate, founded in Vilnius in 2014 and operating as UAB Decentralized, became the first homegrown Lithuanian company to receive a full MiCA CASP licence in December 2025.

Regulatory Evolution

Lithuania was among the first EU member states to enact national MiCA implementing legislation, passing the Law on Markets in Crypto-Assets on 11 July 2024. Prior to MiCA, Lithuania had already strengthened its VASP framework through April 2024 amendments to the AML law, introducing capital and AML officer requirements that in some respects exceeded MiCA’s own minimum standards, reflecting lessons from the permissive early period when the large number of lightly supervised VASPs drew scrutiny from international evaluators.

In its 2024 follow-up assessment, MONEYVAL rated Lithuania compliant or largely compliant on 36 of 40 FATF Recommendations. However, Recommendation 15 (virtual assets) was downgraded from Largely Compliant to Partially Compliant due to persisting deficiencies in virtual asset supervision. Lithuania remains in the enhanced follow-up process and completed its third National Risk Assessment in October 2024, with increased focus on VASP sector vulnerabilities.