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To legally operate a crypto business in the EU and benefit from a progressive fintech environment, you can obtain a CASP license in Lithuania. The SBSB team of fintech lawyers is ready to consult on crypto licensing in EU member states, such as Lithuania, the Netherlands, Malta, and others.
What Is a CASP License in Lithuania?
Under the Markets in Crypto-Assets Regulation, abbreviated as MiCA, adopted by the European Union in 2023, crypto-asset service providers operating across 27 EU member states must be licensed. In Lithuania, MiCA entered into force on 01 June 2025. According to Article 3, paragraph 1 of MiCAR, crypto-asset services involve providing the following:
- providing 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;
- providing transfer services for crypto-assets on behalf of client.
Please note that this classification replaces the former national VASP registration requirements. Licensed entities must provide transparent financial reporting and implement the AML procedures and KYC checks to ensure data protection measures. This is not only for customers’ safety but also boosts the company’s credibility in the international market, verifying its reliability and trustworthiness.
How Is Cryptocurrency Regulated in Lithuania?
Cryptocurrency is strictly regulated in EU member states under MiCAR. Lithuania is not an exception. Here, regulation is implemented according to EU-wide standards and national enforcement. The Bank of Lithuania issues licenses through comprehensive procedures. Also, it regularly supervises crypto-asset service providers and requires reporting.
What Are the Benefits of Getting a Crypto License in Lithuania?
The process of obtaining a crypto license in Lithuania is comprehensive and takes less time than in many EU member states. The licensing process and company registration are fully remote. The Bank of Lithuania reviews applications efficiently. No heavy bureaucracy is observed that can drag out approval, like in Germany, where the timeline is typically up to 18 months, which can be disappointing even though a German market reputation is very high.
What Are the Advantages of a CASP License in Lithuania?
Issuing a CASP license, Lithuania allows licensed businesses to access the EU market. Another benefit is straightforward corporate law, which contributes to easy entity registration and management. The Bank of Lithuania encourages financial innovation, being supportive rather than regulative for crypto-asset businesses. Here, maintenance costs such as local staff payroll and office rental are relatively low. There are tax benefits explained below.
What Are the Requirements for Obtaining a CASP License in Lithuania?
To obtain a CASP license, a crypto-asset service provider must have a registered office in an EU member state where it provides at least part of its crypto-asset services. The company management must be located in the Union, while at least one director must be an EU resident.
To obtain a CASP license in Lithuania, a business should submit an application that contains all of the following information:
- service provider’s identity and address;
- articles of association;
- programme of operation;
- prudential safeguarding policies;
- governance arrangements;
- data about management and shareholders;
- Information on crypto-assets services;
- internal control over AML/CFT procedures and other policies.
An applicant pays the one-time official government fee charged for the issuance of a license.
What Are the Capital and AML/KYC Requirements for CASPs in Lithuania?
Under MiCA, companies must meet a minimum share capital requirement of €50,000, €125,000, or €150,000, determined by the types of regulated activities and the classes of a CASP license.
AML/KYC requirements in Lithuania comply with MiCAR. Licensed CASPs must appoint an AML officer, perform customer verifications, and provide rapid reports in case suspicious activities are revealed.
How Does the CASP Licensing Process Work in Lithuania?
The Bank of Lithuania receives and reviews applications, monitors compliance, and supervises service providers to meet MiCA. The entire process takes about 6–9 months. The application procedure is well-established compared with other EU member states, even highly digitally advanced but more traditional countries like Austria.
What Are the Steps to Apply for a CASP License in Lithuania?
When obtaining a CASP license in Lithuania, a service provider must take the following steps:
- Incorporate a Lithuanian UAB (Private Limited Liability Company) with the Lithuanian Register of Legal Entities, rent a local physical office.
- Hire an AML officer and other top management with proper experience and clean legal history.
- Open a corporate bank or EMI account and integrate the business with the EU payment infrastructure.
- Deposit the required share capital.
- Develop AML policies and detailed business plans.
- Prepare a documentation set.
- Submit the complete application through the Bank of Lithuania.
- Wait until the application is considered complete within 25 working days.
- Improve the application within the specified deadline, if required.
- Wait until the application is considered compliant with legal requirements within 40 working days.
- Get approval in about 6 months and find the company added to the public register.
The authorities may request any other information to complete the assessment. Such requests are made in writing.
How Is a CASP Company Incorporated in Lithuania?
A service provider should choose a company’s name and business structure. A private limited liability company (UAB) is the most typical one. There should be at least one shareholder. Then, he must draft the founding documents, deposit a share capital, and establish a local registered address. To submit the documents through the state’s online Self-Service Portal of the Register of Legal Entities, a qualified electronic signature should be obtained. Alternatively, submitting in person is available.
How Does the Application Submission Process Work in Lithuania?
After the company registration, a service provider prepares the required documents and digitally submits the application file through the official Bank of Lithuania electronic portal. The process is comprehensive and fast.
How Does the Regulatory Review Process Work in Lithuania?
The regulator evaluates compliance with MiCA and anti-money laundering law, the applicant’s competency, legal history, business perspectives, risk management, and technological and operational capabilities. Among other things, the authorities will refuse authorisation if the applicant’s director and top managers do not meet the MiCA criteria or pose a threat to business efficiency or present a risk of money laundering or terrorist financing.
What Happens After CASP License Approval in Lithuania?
Once a CASP license is approved in Lithuania, the Bank of Lithuania formally notifies an applicant through its electronic licensing portal if the application was filed online. Immediately, a CASP can legally provide the crypto-asset services covered by the license.
What Is the Tax Regime for Crypto Businesses in Lithuania?
In Lithuania, CASPs pay taxes under the common tax rules. The corporate income tax rate is 17%. Entities with annual revenue of up to €300,000 and with fewer than 10 employees pay 0% CIT during their first and second tax years and 7% CIT during further years. The VAT rate in Lithuania is 21% when applicable.
What Should You Know Before Applying for a CASP License in Lithuania?
Before you submit an application for a CASP license in Lithuania, you should understand your scope of activities and have a detailed business plan backed by convincing financial forecasts and internal policies developed according to MiCA.
Though in Lithuania the licensing process is fast, it is strictly regulated and requires accurate preparation of application documents. Reach out to SBSB lawyers for comprehensive legal support. We analyse business models, assess crypto-asset services, draft policies, prepare documentation, and render other relevant legal assistance.
FAQ About CASP License in Lithuania
Who is the competent authority for CASP licenses in Lithuania?
The Bank of Lithuania is the authority responsible for authorising and supervising CASP provider.
What are the minimum capital requirements for CASP providers in Lithuania?
Minimum capital requirements depend on the type and scope of crypto‑asset services provided, with MiCA and local rules prescribing different tiers that generally range from tens to hundreds of thousands of euros.
How long does the CASP licensing process usually take in Lithuania?
For a complete and well‑structured application, the licensing process can often be completed in a few months, though the exact timeframe depends on regulatory workload and how quickly the applicant answers follow‑up questions.
Does a Lithuanian CASP license allow passporting across the EU?
Yes, once authorised as a CASP in Lithuania, a firm can passport its services to other EU member states in line with MiCA, significantly simplifying cross‑border expansion within the European crypto‑asset market.
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