Lithuania has positioned itself as a European crypto hub with streamlined licensing processes and clear regulations. The country offers fast registration and competitive banking access for crypto businesses.

Virtual asset service providers must register with Financial Crime Investigation Service and comply with AML requirements.

The regulatory landscape for crypto businesses in Lithuania is transitioning from a national registration regime to the comprehensive European Union Markets in Crypto-Assets Regulation (MiCAR) licensing framework. Prior to MiCAR, crypto businesses (Virtual Asset Service Providers or VASPs) were required to register with the Register of Legal Entities under the AML Law. Key requirements included establishing a Lithuanian private limited liability company (UAB), appointing a local, qualified AML/CTF compliance officer, and maintaining a minimum own (paid) capital of €125,000 (effective from May 2024). Under MiCAR, which is fully applicable from December 30, 2024, the licensing regime is mandatory and supervised by the Bank of Lithuania. Minimum capital requirements vary based on the service provided: €50,000 for advisory services and €125,000 for custody and exchange services. All existing VASPs must obtain a MiCAR license from the Bank of Lithuania by the end of the transitional period, which is set for 31 December 2025.

Lithuania does not have specific legislation dedicated solely to cryptocurrency taxation, applying general tax rules instead. For private individuals, income from the sale of virtual currency is considered income from the sale of property and is subject to Personal Income Tax (PIT). Capital Gains are taxed at a flat rate of 15%. A significant non-taxable threshold of €2,500 applies to the aggregate profit from the sale of virtual currencies and other property (excluding real estate) during a calendar year, meaning only the amount exceeding this threshold is taxed. If a resident engages in continuous and economic activities, such as professional trading or mining, the income is taxed as Individual Activities (Business Income). The tax rate for this is progressive: 5% if the annual income does not exceed €20,000, and 15% if it exceeds this amount. The exchange of virtual currency for fiat currency is exempt from Value Added Tax (VAT), in line with the European Court of Justice ruling. Taxpayers are required to report their crypto-related income annually.

Traditional banks in Lithuania are extremely cautious and generally reluctant to work with crypto companies due to high regulatory pressure and the high-risk classification of the sector. Opening a traditional bank account is only feasible for companies with a highly conservative, low-risk business model, a transparent ownership structure, and significant local substance (office, employees, local directors). For most crypto projects, the most realistic and widely used option is to utilize Electronic Money Institutions (EMIs) and other fintech providers. These institutions are more willing to work with licensed Virtual Asset Service Providers (VASPs), offer flexible onboarding, and provide essential access to the SEPA payment infrastructure, effectively serving as the crypto-friendly financial service providers in the country. No specific traditional "crypto-friendly" banks were identified, as the market relies heavily on the EMI sector.

https://www.lb.lt/