5 Key Factors
- MiCA (Markets in Crypto-Assets Regulation) establishes a harmonised EU regulatory framework for the issuance, public offering and admission to trading of crypto-assets within its scope, as well as the provision of regulated crypto-asset services. It introduces requirements concerning authorisation, prudential safeguards, governance, disclosure, market integrity and consumer protection. However, MiCA does not regulate every crypto-asset or blockchain activity. Crypto-assets qualifying as financial instruments, certain other excluded assets, and activities outside MiCA’s scope remain subject to other applicable EU and national legislation.
- In Lithuania, the transitional period ended on 31 December 2025 – from 2026 onward, the provision of crypto-asset services without MiCA authorisation is treated as illegal financial activity. This means that companies previously operating under the simplified VASP registration were required to either obtain a full CASP licence or cease operations.
- MiCA does not operate in isolation: since 30 December 2024, crypto companies are required to comply with Regulation (EU) 2023/1113 – the European implementation of the Travel Rule, which mandates the transmission of originator and beneficiary data in crypto-asset transfers. The compliance architecture of a crypto business must now cover both regulations simultaneously.
- A licensed CASP in Lithuania gains access to the passporting mechanism – the ability to provide services throughout the entire EU and EEA on the basis of a single authorisation. This makes early acquisition of a MiCA licence a strategic advantage for companies planning to scale across the European market.
- Company in Lithuania UAB (company code 304377400) supports non-residents of Lithuania at every stage of entering the Lithuanian and European crypto market: from business model analysis and structure selection to company registration, preparation of the licensing package, and support throughout the dialogue with the Bank of Lithuania.
The crypto-asset market in the European Union operates under new rules from 2026. The MiCA Regulation, now in full effect, has replaced the patchwork of national approaches with a unified regulatory framework, transforming the crypto industry from a “grey zone” into a regulated financial sector. For companies that previously operated under simplified registration regimes, this represents a fundamental change in the rules of the game – particularly in Lithuania, where the transitional period ended on 31 December 2025.
This article is a practical guide to the MiCA Regulation for entrepreneurs and non-resident companies considering Lithuania as a jurisdiction for their crypto business. We examine what exactly MiCA changed, who is required to obtain a licence, what services are available under CASP authorisation, what requirements the regulator imposes, and why delaying preparation creates real legal and commercial risks.
What MiCA Is and Why It Changed the EU Crypto Market
MiCA (Markets in Crypto-Assets Regulation) is a European Union regulation establishing uniform rules for the crypto-asset market across all member states. Before MiCA, crypto industry regulation in Europe was fragmented: each country defined its own rules, thresholds, and supervisory approaches. This created legal uncertainty, hindered cross-border activity, and opened opportunities for regulatory arbitrage.
MiCA replaced this approach with a unified system. The regulation covers the classification of crypto-assets, market access requirements for service providers (CASPs – Crypto-Asset Service Providers), prudential standards, governance requirements, investor protection rules, and conduct of business norms. For crypto businesses, this means a transition from simplified registration to full authorisation – with corresponding obligations in the areas of capital, management, compliance, and supervision.
Who Must Comply with MiCA
MiCA applies to companies providing crypto-asset-related services within the EU. The scope of regulation includes crypto exchanges, custody service providers (storage and administration of crypto-assets), platforms for exchanging crypto-assets for fiat currencies and crypto-assets for other crypto-assets, brokers and intermediaries, companies providing order execution and crypto-asset placement services, as well as advisory and portfolio management services in the crypto-asset space.
It is important to understand that not all blockchain activity automatically falls under the same regime. The qualification of a specific business model is of paramount importance: it determines whether the company needs CASP authorisation, what scope of licence is required, and which requirements apply. For non-residents planning to enter the European market, a legal analysis of the business model before starting preparation is a mandatory first step.
MiCA vs the Old VASP Regime in Lithuania
Before MiCA came into full effect, crypto companies in Lithuania operated under the VASP regime (Virtual Asset Service Provider). This regime was built predominantly around AML registration: the company was entered into the register, fulfilled anti-money laundering requirements, and could provide crypto-asset services. The entry threshold was relatively low, which attracted a significant number of crypto projects from around the world to Lithuania.
MiCA fundamentally changed this model. Instead of AML registration, full authorisation is now required – with assessment of governance, capital, management qualifications, internal controls, IT security, and safeguarding. In practice, crypto companies now undergo a procedure comparable in depth to the licensing of payment or electronic money institutions.
It is important to note that Lithuania began tightening requirements for crypto companies even before MiCA was fully launched. The reasons were AML risks, fraud, sanctions circumvention, and reputational threats to the jurisdiction. For companies that operated under the old regime, the transition to MiCA is therefore not a surprise but the logical conclusion of a tightening trend.
Why 2026 Is a Turning Point for Crypto Businesses in Lithuania
For Lithuania, 2026 is not “just another stage” – it is the definitive end of the old regime. The transitional period ended on 31 December 2025. After that date, the provision of crypto-asset services without MiCA authorisation is treated as illegal financial activity.
Following the expiry of Lithuania’s transitional period on 31 December 2025, companies providing crypto-asset services within the scope of MiCA must generally hold the required authorisation or qualify for an applicable exemption. Under Article 60 of MiCA, certain already-authorised financial institutions may provide specified crypto-asset services through a notification procedure without obtaining a separate CASP authorisation. Unauthorised provision of regulated crypto-asset services may result in supervisory measures, website access restrictions, administrative sanctions or criminal liability where applicable. Banking relationships and access to payment services remain subject to financial institutions’ independent compliance and risk assessments.
For non-residents considering Lithuania as an entry point to the European crypto market, this means one thing: preparation for MiCA authorisation must begin well in advance of the planned launch, not after it.
What Services a CASP May Provide Under MiCA
Article 3(1)(16) of MiCA identifies ten regulated crypto-asset services: custody and administration of crypto-assets on behalf of clients; operation of a trading platform for crypto-assets; exchange of crypto-assets for funds; exchange of crypto-assets for other crypto-assets; execution of orders for crypto-assets on behalf of clients; placing of crypto-assets; reception and transmission of orders for crypto-assets on behalf of clients; providing advice on crypto-assets; providing portfolio management on crypto-assets; and providing transfer services for crypto-assets on behalf of clients. A CASP may provide only the services covered by its authorisation or an applicable Article 60 notification.
The exact scope of authorisation depends on the set of services the company plans to provide. A company is not required to seek authorisation for all types of activity – it may select only those that correspond to its business model. However, any expansion of the service range after obtaining authorisation will require additional approval from the regulator.
What Crypto Businesses Need Before Applying for a MiCA Licence
Preparation for MiCA authorisation requires a comprehensive assessment of the applicant’s business model, governance arrangements, financial resources, internal controls, AML/CTF framework and ICT risk management. The applicant must demonstrate that it meets the applicable authorisation requirements and can operate in compliance with MiCA and other relevant legislation. However, MiCA does not require every operational system to be fully active or the company to begin providing regulated services before submitting its application. The Bank of Lithuania assesses whether the proposed arrangements are sufficiently developed, documented and capable of effective implementation before authorisation and commencement of regulated activities.
Corporate structure: incorporation of a Lithuanian legal entity (UAB) with a transparent shareholder structure and confirmed origin of funds. Management team: appointment of qualified directors, a compliance officer, an AML officer, and other key function holders. Governance framework: a corporate governance system with clear separation of functions, internal controls, and a reporting structure. AML/CTF documentation: policies for customer identification, transaction monitoring, money laundering and terrorist financing risk management. Safeguarding: a mechanism for protecting client assets and funds. IT and information security: systems architecture description, security policies, and a business continuity plan. Outsourcing map: a description of all outsourced functions with detailed contracts and allocation of responsibilities.
For non-residents, this stage often includes additional tasks: establishing a Lithuanian presence (local substance), recruiting local specialists, and adapting existing processes to European regulatory requirements.
The Role of the Bank of Lithuania Under MiCA
The Bank of Lithuania (Lietuvos bankas) acts as the licensing and supervisory authority for crypto-asset market participants in Lithuania. It is the Bank of Lithuania that reviews CASP authorisation applications, assesses the suitability of management, the governance model, and the completeness of the application package.
Lithuania has already issued several CASP authorisations under MiCA, confirming that the new regime is fully operational. The Bank of Lithuania also conducts preliminary consultations with applicants, allowing them to discuss the project structure and receive feedback before formal submission.
For international non-resident companies, it is important to understand that the Bank of Lithuania evaluates not only documents but the company’s genuine readiness for operational activity within a regulated financial market.
Key Compliance Areas Under MiCA: Governance, AML and Safeguarding
For a business, MiCA is not just a licence – it is an ongoing compliance architecture that must be maintained throughout the company’s operations.
Governance – the company must have a clear organisational structure, an internal control system, an independent compliance function, and decision-making procedures. Directors undergo suitability assessment covering qualifications, experience, and reputation.
AML/CTF – the crypto company is required to implement a comprehensive anti-money laundering system: customer identification (KYC), transaction monitoring, internal reporting, staff training, and risk assessment. The requirements are no less rigorous than those applied to banks and payment institutions.
Safeguarding – CASPs holding clients’ crypto-assets or funds must comply with the applicable safeguarding requirements under MiCA, particularly Article 70 and the service-specific provisions of Title V. Client crypto-assets must be appropriately separated from the CASP’s own assets, while client funds other than electronic money tokens must be placed with an eligible credit institution or central bank in accordance with the statutory requirements. CASPs must maintain appropriate records, custody arrangements and operational controls to protect clients’ rights. These safeguards reduce risks but do not guarantee protection against all losses, insolvency events, cyber incidents or fraud.
Outsourcing controls – if the company delegates critical functions to third parties, it retains full responsibility and must ensure control and reporting over outsourced operations.
MiCA and the Travel Rule: Why Crypto Compliance Is No Longer One Regulation Only
MiCA does not operate in isolation. Since 30 December 2024, crypto companies in the EU are also required to comply with Regulation (EU) 2023/1113 – the European implementation of the Travel Rule. This regulation mandates the transmission of originator and beneficiary data in crypto-asset transfers – mirroring the requirements that apply in the traditional payment system.
For crypto businesses, this means that the compliance architecture must simultaneously cover MiCA requirements (authorisation, governance, safeguarding, conduct of business) and the Transfer of Funds Regulation (identification of transfer parties, data transmission, monitoring). Entrepreneurs preparing only for MiCA without accounting for the Travel Rule risk finding themselves non-compliant shortly after obtaining authorisation.
Can a Licensed CASP Operate Across the EU
Yes. After obtaining MiCA authorisation in Lithuania, a company gains access to the passporting mechanism – a notification-based procedure for entering the markets of other EU and EEA countries. This is one of the key advantages of full authorisation: instead of obtaining separate licences in each country, the company can provide services throughout the entire Union on the basis of its Lithuanian authorisation.
For non-resident entrepreneurs planning to expand across the European market, Lithuanian CASP authorisation provides access to the EU cross-border notification mechanism established by Article 65 of MiCA. An authorised CASP must notify the Bank of Lithuania of the Member States and regulated services covered by its proposed cross-border activities. It may commence those activities following the prescribed notification procedure, without obtaining separate CASP licences in each host Member State. Certain financial institutions operating under Article 60 of MiCA may also provide eligible crypto-asset services across the EU without obtaining a separate CASP authorisation, subject to the applicable notification and regulatory requirements.
Main Risks for Crypto Businesses That Delay MiCA Preparation
Delaying MiCA preparation creates real legal and commercial consequences.
Inability to continue operations – after the end of the transitional period, operating without authorisation is illegal. Loss of market access – the company loses the right to provide crypto-asset services within the EU. Website blocking measures – regulators have the authority to initiate restrictions on access to the websites of unlicensed providers. Administrative or criminal liability – providing financial services without a licence carries legal consequences. Banking and payment service restrictions โ companies providing regulated crypto-asset services without the required authorisation may face account closures, rejected onboarding applications and other compliance-related restrictions. However, financial institutions assess each business relationship individually, and CASP authorisation does not automatically guarantee access to banking or payment services. Cross-border provision of regulated crypto-asset services generally requires MiCA authorisation or another applicable legal basis, including the Article 60 framework for eligible financial institutions. Access to institutional clients depends on the provider’s regulatory status, contractual arrangements and applicable compliance requirements.
For non-residents who have already invested in their European market presence, every month without authorisation is not simply lost time – it is a compounding legal and commercial risk.
How to Prepare a Crypto Business for MiCA in Lithuania
Preparation for MiCA authorisation is a sequential process that begins well before the formal application is submitted.
The first step is to analyse the business model and determine the scope of services falling under CASP authorisation. The second is to assess the need for a CASP licence and select the optimal structure. The third is to incorporate a Lithuanian legal entity (UAB) and establish the governance model. The fourth is to appoint qualified management and key function holders. The fifth is to prepare AML/CTF documentation and the internal control system. The sixth is to develop the safeguarding model and IT infrastructure. The seventh is to compile the complete application package. The eighth is to submit the application and manage the dialogue with the Bank of Lithuania. The ninth is to align the operating model with requirements before launch.
For non-residents, this process is supplemented by tasks related to establishing local substance, adapting corporate processes, and coordinating across jurisdictions.
Is Lithuania Still a Strong Jurisdiction for Crypto Businesses Under MiCA
Lithuania remains an established European fintech jurisdiction with an operational MiCA authorisation framework supervised by the Bank of Lithuania. Its financial infrastructure includes the CENTROlink payment system and access to the wider SEPA ecosystem through eligible payment service providers. However, obtaining CASP authorisation does not automatically grant direct access to CENTROlink, participation in SEPA payment schemes or authorisation to provide regulated payment services. Such activities and infrastructure access are subject to separate eligibility, licensing and operational requirements.
However, Lithuania can no longer be positioned as an “easy” jurisdiction for quick entry into the crypto market. MiCA has established uniform standards across the EU, and requirements in Lithuania are now comparable to those in any other member state. Lithuania suits prepared projects – companies capable of meeting financial sector standards, investing in governance, compliance, and operational infrastructure.
For non-residents, Lithuania’s advantage lies in the regulator’s experience, a transparent process, and access to the entire EU market through passporting.
How We Help Crypto Businesses Enter the Lithuanian and EU Market
Company in Lithuania UAB supports non-residents of Lithuania at every stage of MiCA authorisation preparation and acquisition. Our work begins with a legal analysis of the client’s business model and determination of the optimal structure for entering the European market.
We handle the registration of the Lithuanian legal entity (UAB), preparation of governance documentation, AML/CTF policies, the safeguarding model, and the complete application package. We assist with recruiting qualified management, establishing local substance, and structuring capital. We support the entire dialogue with the Bank of Lithuania – from preliminary consultations to obtaining the decision – and help with operational readiness for launch.
Contact Company in Lithuania UAB – our legal team will analyse your business model and help you obtain CASP authorisation under MiCA in Lithuania.
Frequently Asked Questions
MiCA replaced the former VASP regime, which was based on AML registration, with a full authorisation and supervision model. Crypto companies in Lithuania now undergo a procedure comparable to the licensing of financial institutions: assessment of governance, capital, management qualifications, AML/CTF systems, safeguarding, and IT security. The transitional period in Lithuania ended on 31 December 2025 – from 2026 onward, operating without MiCA authorisation is illegal.
Yes. Non-residents can obtain CASP authorisation in Lithuania by incorporating a Lithuanian legal entity (UAB), establishing local substance, and meeting all requirements of the Bank of Lithuania. Lithuania remains an attractive jurisdiction for non-residents precisely because of the regulator’s experience, a transparent process, and access to the EU market through passporting.
The Travel Rule is a requirement under Regulation (EU) 2023/1113, obligating crypto companies to transmit originator and beneficiary data in crypto-asset transfers. The requirement has been in effect since 30 December 2024 and applies in parallel with MiCA. A crypto business must ensure compliance with both regulations simultaneously – fulfilling only MiCA without accounting for the Travel Rule creates a risk of non-compliance.
After the end of the transitional period, providing crypto-asset services without authorisation is treated as illegal financial activity. This entails the inability to operate legally, loss of access to the EU market, the risk of website blocking measures, administrative or criminal liability, problems with banks and payment partners, and the inability to scale through passporting.
The realistic project timeline depends on the applicant’s readiness and the complexity of the business model. The formal application review period by the Bank of Lithuania is supplemented by a significant preparation phase: corporate structure, governance, AML/CTF documentation, IT infrastructure, safeguarding, and management team formation. For non-residents, the process may include additional tasks related to establishing local substance and adapting corporate processes.
Conclusion
The MiCA Regulation has definitively transformed the crypto-asset market in the EU into a regulated financial sector. For crypto businesses, this means the end of the era of simplified registrations and the beginning of full licensing and supervision. In Lithuania, the transitional period has concluded – from 2026 onward, operating without authorisation is not possible.
For non-residents considering Lithuania as an entry point to the European crypto market, the key to success lies in timely and thorough preparation. Lithuania offers an experienced regulator, a transparent process, and access to the entire EU market, but demands genuine compliance with financial sector standards.
If you are planning to obtain CASP authorisation under MiCA in Lithuania, contact Company in Lithuania UAB for a free initial assessment of your project.
Company in Lithuania UAB (company code 304377400) is a Lithuania-registered company providing services for company incorporation, accounting support, and assistance with obtaining licences for non-residents of Lithuania. This article is for informational purposes only and does not constitute legal advice.
