The post Lithuania Declares War on Unlicensed Crypto Firms as MiCA Enforcement Begins appeared first on Coinpedia Fintech News
Lithuania is preparing for one of its toughest crypto enforcement actions yet, signaling a clear shift from regulatory tolerance to strict oversight. Starting January 1, 2026, crypto firms operating without a valid MiCA license will be treated as illegal, exposing hundreds of companies to fines, website blocks, and even criminal liability.
The move places Lithuania at the forefront of Europe’s push to turn MiCA from a framework on paper into active enforcement.
Lithuania’s central bank, Lietuvos Bankas, has confirmed that the transition period for crypto service providers expires on December 31. From that point onward, any exchange, wallet provider, or crypto platform serving users without MiCA authorization will be operating outside the law.
While more than 370 crypto-related entities are registered in the country, only around 120 are actively operating. Even more concerning for regulators, fewer than 10% of firms, roughly 30 companies, have applied for the required license so far. Authorities have warned that waiting any longer could leave businesses exposed to immediate enforcement action.
Regulators have made it clear that consequences will be serious. Unlicensed firms may face financial penalties, forced shutdowns, website blocking, and, in severe cases, criminal charges carrying prison sentences of up to four years.
Lithuania’s central bank has urged companies that do not plan to seek a license to begin winding down operations immediately. Firms are expected to notify users, return customer funds, and provide clear instructions for transferring assets to other custodians or self-hosted wallets before services are terminated.
Lithuania wants to position itself as a “MiCA gateway” for compliant crypto businesses entering the European Union. Rather than acting as a permissive hub, the country is choosing to attract firms willing to operate under strict transparency, investor protection, and reporting standards.
Officials argue that tighter oversight will reduce fraud, improve trust, and align crypto services with traditional financial regulations. In their view, enforcement is necessary to protect consumers and the integrity of the financial system.
The immediate crypto sentiment around Lithuania’s decision is mixed. Smaller firms and offshore operators see the move as hostile, while regulated exchanges and institutional players largely welcome the clarity. Many in the industry view this as a broader European trend rather than an isolated event. As MiCA enforcement ramps up across the EU, crypto firms are increasingly forced to choose between compliance and exit. The uncertainty phase is ending.
In the short term, Lithuania may see a sharp drop in the number of crypto firms operating locally. However, analysts believe the country could benefit long-term by becoming a trusted, regulated crypto jurisdiction.
If successful, Lithuania may attract banks, fintech firms, and institutional investors seeking a stable regulatory environment. While the crackdown may sting today, it could ultimately reshape the country into one of Europe’s most credible crypto hubs under MiCA’s new rulebook.
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Yes. Platforms registered in Lithuania but serving users across the EU may lose the legal right to operate, potentially forcing users to withdraw funds or migrate accounts. Customers could face short-term disruptions even if they are not based in Lithuania.
Funds are expected to be returned or transferred, but timelines and execution depend on each firm’s internal controls. Delays or disputes could arise if a company is already financially strained or poorly governed.
Firms focused on compliance, institutional clients, and long-term EU market access are more likely to stay or enter. Speculative, lightly regulated, or short-term operators may shift to non-EU jurisdictions instead.


Lawmakers in the US House of Representatives and Senate met with cryptocurrency industry leaders in three separate roundtable events this week. Members of the US Congress met with key figures in the cryptocurrency industry to discuss issues and potential laws related to the establishment of a strategic Bitcoin reserve and a market structure.On Tuesday, a group of lawmakers that included Alaska Representative Nick Begich and Ohio Senator Bernie Moreno met with Strategy co-founder Michael Saylor and others in a roundtable event regarding the BITCOIN Act, a bill to establish a strategic Bitcoin (BTC) reserve. The discussion was hosted by the advocacy organization Digital Chamber and its affiliates, the Digital Power Network and Bitcoin Treasury Council.“Legislators and the executives at yesterday’s roundtable agree, there is a need [for] a Strategic Bitcoin Reserve law to ensure its longevity for America’s financial future,” Hailey Miller, director of government affairs and public policy at Digital Power Network, told Cointelegraph. “Most attendees are looking for next steps, which may mean including the SBR within the broader policy frameworks already advancing.“Read more
