Estonia is known for its tech-friendly laws, but its neighbour, Lithuania, is also one of the leading EU countries for crypto businesses.
This article will explain how to get a Lithuania crypto licence in 2025.
By the end of this post, you will know why Lithuania is a favorable environment for cryptocurrency activities, the potential challenges that companies may face when operating in this country and how Legal Nodes can help you overcome them.
Why Lithuania is a hub for crypto businesses
Lithuania became one of the most advanced crypto countries in the EU by being an early adopter of the crypto legislature and having a supporting governmental framework for the emerging fintech sector.
Their fast licensing process is proof of that. Without your physical presence in the country, you can get a fully operational crypto business in 3-6 months if you meet their regulatory requirements.
Accounting support is key for dealing with tax issues and ensuring compliance during company registration.
The timeframe will be shorter if you are fully prepared. Legal Nodes can support and streamline your business operations to increase efficiency.
Benefits of getting a Lithuania crypto license
Lithuania has a clear framework for establishing and running a crypto business. You will benefit from a solid and stable legal system if you meet their government requirements.
Lithuania was one of the first countries to adopt the Markets in Crypto-Assets (MiCA) regulation, which governs the crypto market in the entire European Union.
Since crypto is a volatile industry, establishing your name in a reputable jurisdiction like Lithuania will help your business gain legitimacy, make it easier to attract investors and lead to long-term cooperation with local partners and authorities.
Lithuania is an EU country, so you must meet high regulatory standards compared to some other jurisdictions, especially in Latin America. But licensing your business anywhere else in the world won’t be a problem if you do.
Getting a Lithuania crypto licence will let you operate anywhere in the EU, as it’s a free-flowing market. Even though the EU is having a tough time now, with a €17 trillion GDP, it’s still one of the wealthiest economies worth breaking into.
Types of crypto activities covered under the license
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Before MICA, Lithuania had two types of crypto licenses you can still apply for by May 31st 2025, after which only MICA licensing will apply.
Cryptocurrency exchange operator license
A Lithuanian crypto exchange license, or Virtual Currency Exchange Service Providers (VCESP) license, allows you to provide centralized crypto exchange services, including crypto-to-crypto and crypto-to-fiat exchanges.
You can also offer services such as staking, which allows users to generate passive income from cryptocurrencies and provide clients with balance and transaction information for their cryptocurrency depository wallets.
Companies can work with private investors and corporate clients with the license while complying with AML, KYC and CFT compliance.
Cryptocurrency depository wallet operator license
The Virtual Currency Wallet Service Provider (VCWSP) license is for crypto businesses that offer wallet services, meaning they store and manage cryptocurrencies for their users.
It includes both custodial wallets and non-custodial wallets. A VCWSP license requires companies to comply with AML, CFT and KYC regulations to prevent illicit activities.
This license covers storing and managing crypto, not exchanging it.
Post-MICA licensing
As of January 2025, Lithuanian crypto businesses can also register under the MICA regulation, a centralized framework that covers the entire EU.
The MICA license applies to these types of CASPs (Crypto Asset Service Providers):
- Crypto exchange services (you can find out more about CEX and DEX legal structuring)
- Crypto custody and administration services
- Crypto advisory and information-based services
All common crypto business types must apply for a license in one of the EU member states. Since Lithuania has such a crypto-friendly administration, it is a good place to get a MICA license.
Key requirements for Lithuania crypto license
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Let’s break down the requirements of getting a Lithuania crypto license.
Legal requirements
The first set of rules regards the legislation requirements for your company if you want to operate with cryptocurrencies in Lithuania.
Company registration process
First, you must register a company, an LLC (UAB), with the Lithuanian registry of legal entities. This process goes fast in Lithuania, and you can complete it in a couple of weeks if you correctly prepare the paperwork.
Minimum share capital requirements
Before MICA, you needed €125,000 minimum share capital to form a crypto business in Lithuania, whether VCEP or VCWSP.
If you register your business under the MICA framework or after May 31st 2025, you must have a minimum share capital going from €50,000 to €150,000, depending on the business model and risk profile.
Financial requirements
The minimum capital requirement ranging €50k-150k is the amount you need to maintain as it is an ongoing obligation. But that’s not all.
You must budget for AML, KYC and CFT compliance, audit procedures, regulatory reporting, consumer protection, constant employee certification, and license renewals.
All of those costs will depend on your business type and size.
Operational requirements
The compliance procedures the Lithuanian government requires to get your crypto licenses will also incur costs, primarily in these groups.
AML, KYC and CFT procedures
AML, KYC and CFT combat money laundering and other criminal activities that were prevalent during the unregulated early days of cryptocurrency.
In the EU, crypto businesses must comply with AML, KYC, and CFT. You must implement identity checks during user onboarding and monitor transactions for signs of illicit activity.
It reduces fraud and illegal transactions.
Risk management systems
MICA recognizes the risks crypto markets carry. You must implement risk management systems to protect users from market volatility, including insurance, controls, monitoring, governance and oversight, all through different policies and methodologies.
Data protection measures
In the EU, all crypto businesses must comply with GDPR. You must implement data protection standards, appoint a Data Protection Officer (DPO), and implement proper security measures to prevent data leaks.
You must also give users the necessary information about managing their sensitive personal data.
Step-by-step guide to get a Lithuania crypto license
Let’s go through the steps to get a crypto license in Lithuania.
Step 1: Prepare your business plan and documentation
Because of the compliance and due diligence process, you must prepare your business plan for authorization.
It should include information about your company, executive summary, plans and future targets, products and services you will provide, and operational plan and market analysis.
This plan should also describe risk management and financial projections, which you must prepare for AML and KYC compliance.
Step 2: Register your company in Lithuania
For most business models, starting as a limited liability company (UAB) is the best option, as it balances risks and gives enough flexibility.
After you choose your name, you should apply for registration with the Lithuanian Register of Legal Entities, fill out the necessary forms and provide the documentation they ask for.
You must also open a bank account, finalize the notarization procedures and apply for TAX registration to get your VAT number.
Step 3: Apply for the crypto license with the Bank of Lithuania
Image source: Freepik
After establishing your legal entity, it’s time to apply for the crypto licence issued by the Bank of Lithuania.
Filling out the application form and submitting company documents and business plan won’t be a big issue, but you must also provide proof of capital, audited financial statements and declarations for your management and key personnel.
Step 4: Comply with AML and KYC regulations
AML and KYC are crucial in the EU due to their extensive requirements. You must stay compliant as long as you operate in the region.
While all of the compliance requirements are hard to list, here’s a rough breakdown:
- KYC: You must implement policies and use tech that verifies customer identities through identification documents. You need to perform due diligence to evaluate risk factors and ensure customers have legitimate sources of funds.
- AML: You need to keep an eye on transactions for suspicious activity and report them to authorities. You must also keep records and designate a compliance officer responsible for these processes.
Key regulatory documents guiding these requirements include the MiCA regulation and the sixth EU AML directive.
Step 5: Pay the required fees and await approval
The government license fee will cost you around €1,000. You will also have costs related to company formation and the required share capital, ranging from €50,000 to €150,000.
After that, you will need to wait for approval. The Bank of Lithuania might ask for additional information, so it’s better to work with the expert legal team.
Search for legal service providers with an individual approach to your business. They already know the deal and provide assistance to help you get the license as soon as possible.
Common issues with Lithuania crypto license
While the Lithuanian system has many advantages, some obstacles exist.
Language barriers
While most websites offer information in English, you must communicate with authorities in Lithuanian and submit all documentation in their language.
It creates extra costs for translation and interpretation services and can make daily business operations more difficult due to the language barrier.
Understanding complex regulations
While Lithuania has a structured legal framework for cryptocurrency, it’s still an EU country.
While operating in Lithuania, you must comply with local Lithuanian laws and broader EU regulations, such as the MiCA regulation and the sixth AML directive.
AML officer recruitment
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The AML and compliance officer must be a Lithuanian resident due to the request for constant communication with local authorities.
That person must have a clean criminal record, especially regarding financial crimes. They should be familiar with MICA and the AMLD6, which regulate the crypto industry at the EU level.
European alternatives to Lithuania crypto license
The benefit of getting a Crypto license in any EU jurisdiction is that you can operate in any other member state due to so-called “passporting”. Here are some alternatives.
Poland crypto license
Poland is worth considering as it has a flexible legal framework, fast licensing, more than 36 million people and a bigger economy overall.
Read more about how to get a Polish crypto license.
Estonia crypto license
Estonia is known as a digital nation, which means you can establish and operate a business entirely online. It offers favorable tax conditions, including a 0% income tax on undistributed profits.
However, the country has faced reputational challenges due to past crypto money laundering and fraud scandals.
With the MiCA regulation, there is optimism that these issues will be solved across the EU, promoting a more transparent and secure environment for cryptocurrency operations.
France crypto license
France is the second-biggest economy in the EU and a key financial center. It has a strong set of regulations, a good reputation, and a welcoming attitude towards fintech.
However, running a crypto business there can be pricier because it’s a wealthier country, and the regulatory processes might take longer than in other jurisdictions.
Legal Nodes: Your partner in getting a Lithuania crypto license
At Legal Nodes, we provide legal structuring guidance, assist you in choosing a crypto-friendly country and help you get a crypto license in more than 20 locations.
Based on our experience and knowledge, we present the advantages, challenges, and regulatory requirements so you can make confident decisions in as little as 1-2 weeks, not months.
We work with boutique law firms and independent legal experts (many with top-tier law firm experience) who know the ins and outs of the legal ecosystem to expedite the licensing process.
Compared to big legal companies, Legal Nodes offers cost-efficient incorporation, licensing, and compliance solutions, saving you time and resources while maintaining rigorous quality standards.
Beyond license acquisition, Legal Nodes helps maintain crypto companies and sort documentation, licenses and compliance matters. We also help you with tax reporting, accounting, agreements with the team, AML compliance, and more.
With our Virtual Legal Officer, you will always have an external legal advisor to contact to prevent potential problems from happening.
To start with Legal Nodes, you just need to contact our team, we will assess the details of your project and prepare a proposal based on your needs.
Conclusion about Lithuania crypto license
Lithuania is a growing crypto ecosystem with an established legal framework, even before MICA. Starting your business in this Baltic country is worth considering if you can overcome the language barrier and the complex ecosystem.
Legal Nodes will take care of all your legal needs, from setting up a company to getting the required licenses, all the way to staying compliant with regulations and supporting your daily legal needs.
Get started today with Legal Nodes and leave licenses, translations, paperwork and bureaucracy to us—your job is to focus on growing your business!
FAQs about Lithuania crypto license
Do you need a crypto license in Lithuania?
Yes, you do need a crypto license in Lithuania. Before MICA, Lithuania had two types of permits, you could still get by May 31st 2025:
- Virtual Currency Exchange Service Providers (VCESP) licence
- Virtual currency wallet service provider (VCWSP) license
After MICA, one license will be issued for all VASP businesses.
What is the easiest country to get a crypto license?
Currently, worldwide, jurisdictions such as Costa Rica and El Salvador have very favorable crypto laws but don’t have the best reputation. Estonia and Lithuania are good options in the EU, as they combine clear procedures and allow you to operate anywhere in the EU.
Who is the regulator of crypto in Lithuania?
The primary regulator for crypto businesses in Lithuania is the Bank of Lithuania. However, the Ministry of Finance and the Financial Crime Investigation Service play a role, too, especially when it comes to compliance and investigations.
Does Lithuania tax crypto?
Lithuania taxes all gains made by selling crypto at 15%. However, there is a non-taxable limit for private persons and other income tax rules depending on your employment status, salary and similar.
So, Lithuania is not one of the countries that don’t tax crypto.
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