A small EU nation is set to enforce one of Europe’s strictest crypto crackdowns, warning that hundreds of unlicensed digital asset firms could face fines, website blocks, and even prison time starting next week.
The central bank has made it clear that any platform continuing to onboard users or handle crypto without proper MiCA authorization after December 31 will be considered illegal.
The Bank of Lithuania, which oversees the country’s crypto sector, has urged all service providers to secure licenses immediately. While over 370 firms are officially registered in the nation, only around 120 are actively operating and reporting revenues.
Alarmingly, fewer than 10%, or roughly 30 companies, have applied for MiCA licenses so far. This leaves dozens of active firms and hundreds of registered entities exposed to enforcement.
A transitional period, during which crypto exchanges, wallet operators, and other service providers can obtain authorization, expires at the end of 2025.
After the deadline, Lietuvos Bankas has stated it will take stringent action against non-compliant firms, including fines, blocking websites, and pursuing criminal liability under national law. Violations could carry prison terms of up to four years.
Dalia Juškevičienė, head of the Central Bank’s Investment Services and Undertakings Supervision Division, emphasized the importance of orderly shutdowns for firms that do not plan to continue operations.
“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,” local media reported, citing Dalia.
Customers must be provided with clear guidance on transferring fiat and digital assets to other custodians or self-hosted wallets before services are discontinued.
The crackdown positions the Baltic state as a strict gateway for MiCA-compliant operations rather than a permissive crypto hub.
Authorities have warned that enforcement will go beyond targeting active platforms. Instead, it will target registered entities that maintain websites, accounts, or custody services.
This approach ensures the regulator can protect investors and maintain transparency and integrity in the market.
The looming enforcement follows a broader trend of regulatory tightening across Europe. MiCA rules, which establish licensing requirements and investor safeguards, are now moving from theory to practice.
