Next year, as Lithuania grants licenses and tightens rules, the number of cryptocurrency companies operating there is expected to drop significantly.
Next year, as Lithuania grants licenses and tightens rules, the number of cryptocurrency companies operating there is expected to drop significantly.
A Bank of Lithuania board member, Simonas Krėpšta, disclosed plans for a regulatory change that will significantly reduce the number of cryptocurrency companies operating in the nation, which has made a name for itself as a refuge for financial technology startups, in a Bloomberg interview on April 2.
Krepsta claims that Lithuania is about to impose more stringent licensing regulations, which would drive many cryptocurrency businesses out of business the next year.
There are now 580 cryptocurrency companies based in Lithuania. Nevertheless, Krepsta notes that the licensing procedure is anticipated to start in June 2025 and that only a small percentage of these organizations are anticipated to fulfill the requirements for acquiring complete permits under the new regulatory framework.
Regarding the development of unlicensed cryptocurrency businesses in the area, Krepsta expressed worries about possible illegal activities like fraud and money laundering. But the official claims that the nation is already creating its own legal framework to control cryptocurrencies, strengthening the regulatory monitoring powers of its regional Financial Intelligence Unit.
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