Lithuanian authorities intend to adopt a law on the regulation of cryptocurrencies before the EU

The Government of the Republic of Lithuania plans to develop legislation to regulate the cryptocurrency market before the activities of “less decent companies” can undermine the image of the industry.

Deputy Minister of Finance Mindaugas Liutvinskas reported at a meeting with journalists that Lithuania plans to create a national system of crypto-licensing, without waiting for the adoption of a single law on the regulation of crypto asset markets in the EU countries.

“We support MiCA – this is an important and correct decision, but the EU law will not be adopted until 2025. We have decided now to take practical steps and do all our homework to strengthen our own legal and regulatory framework,” said Lutvinskas.

The deputy minister believes that the government should get ahead of any negative consequences for investors:

“Reputation is an important resource in this line of business. For both the government and the market participants, the worst-case scenario would be if something bad happened, like a money laundering or sanctions circumvention scandal.”

The draft of the future law will be discussed in the Lithuanian Parliament this summer, the official promised. The document includes requirements for companies that want to work in the country. These are requirements for a minimum capital of €125,000, as well as the obligatory presence of anti-money laundering specialists and a representative office in the territory of Lithuania.

The Ministry of Finance does not insist on a mandatory client identification procedure (KYC). In addition, officials criticize the European Parliament for being too strict in overseeing transactions with crypto wallets.

In March 2022, Estonia introduced a series of new anti-money laundering and anti-terrorist financing regulations that tighten the registration requirements for Estonian-licensed cryptocurrency companies.