Lithuania's crypto ecosystem is undergoing a dramatic transformation. The central bank recently announced a strict rule: starting from 2026, all crypto service providers operating locally must hold a MiCA license. The transition period only lasts until the end of next year, and operating without a license beyond that will be considered illegal, with penalties including up to 4 years of imprisonment and hefty fines.

This news has triggered a series of alarming data. Currently, Lithuania has registered over 370 related companies, but only 30 have proactively submitted applications. What about the remaining 300+ companies? Some may have genuinely given up, while others are hard to say. A major industry cleanup is now inevitable.

What does this mean for practitioners and users? First, small-scale exchanges and platforms without proper licenses will be gradually phased out. To establish a foothold in this market, genuine licensing support is essential. Second, the new regulatory rules also require platforms to properly segregate customer assets, directly reducing the risk of fraud and theft—at least from a systemic perspective, providing more protection for users. More broadly, Lithuania was once a relatively lenient and crypto-friendly zone in Europe. This shift symbolizes that the entire EU is tightening its regulatory stance, and in the future, only truly compliant players will remain on the European stage.

For users currently using various platforms, immediate action is crucial: check the background of the exchange you are using. If it involves EU operations, be sure to verify its progress in obtaining a MiCA license. The wave of compliance has already begun, and the first step to protecting your assets is to choose platforms that have genuinely obtained licenses.