Lithuania will begin cracking down on unlicensed encryption companies starting January 1, 2026.

Odaily Planet Daily reports that the Lithuanian central bank, Lietuvos Bankas, has warned that from January 1, 2026, all institutions providing cryptocurrency-related services in the country must hold a MiCA license, or they will be considered operating illegally. The transition period ends on December 31, 2025. Non-compliant platforms may face fines, website bans, and in serious cases, criminal prosecution, with a maximum penalty of four years imprisonment. The regulator requires businesses that do not intend to continue operating to exit the market in an orderly manner and properly handle user assets. To date, of the more than 370 registered cryptocurrency companies in Lithuania, only about 30 have submitted license applications. (Cryptopolitan)