Lithuania Updates Crypto Asset User Reporting Rules, EU-Wide Implementation Kicks Off in 2026

Odaily reports that the State Tax Inspectorate of Lithuania has updated the user reporting procedures for crypto asset service providers. Through Order No. VA-63, it has clarified the reporting scope and operational standards, aligning the country's rules with the EU's DAC8 and the OECD's Crypto-Asset Reporting Framework (CARF).

The new rules require regulated crypto asset service providers and local crypto operators to enhance customer due diligence, collect user identity, transaction records, and tax residency information, and maintain records of customer identification numbers, transaction logs, and account balances. Entities that have already completed registration and reporting obligations in other EU member states may be exempt from duplicate reporting in Lithuania.

Full operational reporting across the EU will begin on January 1, 2026, with data collected by platforms in 2026 to be automatically exchanged among member state tax authorities starting mid-2027. The new rules do not change Lithuania's virtual asset capital gains tax rate, but relevant institutions will need to update their client onboarding processes and back-end systems.

Starting March 2, certain transactions involving electronic money tokens (EMTs) will require additional payment service authorization, including transferring EMTs on behalf of clients and operating custodial wallets that support third-party transfers; exchanges between EMTs and exchanges between EMTs and fiat currency are not automatically classified as payment services. (Bitcoin.com News)