The Bank of Lithuania warns all crypto service providers operating in Lithuania must obtain a valid EU MiCA licence by 31 Dec 2025. From 1 Jan 2026 platforms without approval will be illegal and subject to fines, website blocking and, in severe cases, criminal charges up to four years’ imprisonment. Of >370 registered firms only ~30 have applied so regulators urged non-compliant firms to wind down operations. The rule implements MiCA measures to strengthen oversight, AML controls, consumer protection and transparency.

Concrete, near-term regulatory deadline (Dec 31, 2025) with explicit penalties from Jan 1, 2026 (fines, website blocking, possible criminal charges) and low application uptake (about 30 of 370 firms) increases likelihood firms will be forced to cease or change operations; these are fact-based reasons for negative sentiment and a moderate market impact for affected firms.