Lithuanian Parliament approved regulation implementing MiCA

On 11 July, 2024, Lithuanian Parliament adopted the draft Law on Markets in Crypto-Assets and accompanying legislation.

The amendments, among other things, introduce new activity requirements for crypto-asset service providers which essentially shall bring them closer to the activity standards applicable to financial institutions. The laws implementing EU legislation (MiCA) set out the requirements for the conduct of business, licensing and supervisory processes for such entities. Accordingly, shall be amended current model for the supervision and registration of virtual currency exchange operators and depository virtual currency wallet operators.

The package of legislative changes provides for a transitional period until 1 June 2025 to prepare and obtain licenses to continue operating under the new regulation. Virtual currency exchange operators and depository virtual currency wallet operators wishing to continue to provide crypto-asset services will be required to obtain an activity license issued by the Bank of Lithuania.

The amendments to the law provide that the Bank of Lithuania will be responsible for the supervision of crypto-assets service providers. The authorities responsible for the supervision of crypto-asset service providers for the prevention of money laundering and terrorist financing will be the Bank of Lithuania and the Financial Crimes Investigation Service.