Proactive Reforms: Lithuania Intends to Refine Crypto Landscape Ahead of MiCA Rollout
In order to manage the emerging risks before the entry into application of the European Markets in Crypto Assets Regulation (MiCA), Lithuania intends to reinforce its national cryptocurrency regulation. We discussed the key points and consequences with legal experts from Gofaizen & Sherle , specializing in fintech law and crypto license in Lithuania and the EU, Vladimiras Kokorevas and Mihhail Sherle.
Rules of MiCA allows Member States of the EU to decide on the application of a transitional period (i.e., from 30 December 2024 until 1 July 2026 or a shorter period) in relation to entities already providing crypto asset services within their jurisdiction during which such entities can continue their business activities without the MiCA license. Lithuania is already recognized as the most attractive jurisdiction for crypto in the fintech community and its Ministry of Finance proposed to be proactive and not utilize MiCA’s transitional period for crypto-asset service providers. This proposal in the form of draft legislative acts is currently under discussion with other institutions and stakeholders.
This post slightly steps back from the discusion of MiCA and explores how the proposed changes as an “intermediate” risk management measure before the application of the MiCA in Lithuania will impact crypto businesses in the country and outlines steps to prepare for them. Let’s first delve into the anticipated changes in 2024.
On November 29, 2023, the Government of the Republic of Lithuania approved the draft Law on the Prevention of Money Laundering and Terrorist Financing (AML Law draft) along with eight other related draft laws. Among other things, these measures aim to strengthen supervision and regulation
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