Lithuania Tightens Oversight Under EU Mica Rules

(MENAFN- Trend News Agency) BAKU, Azerbaijan, July 23. In Lithuania, investors using the services of virtual currency exchange operators and depository virtual currency wallet operators (hereinafter – the operators) should already check whether the company providing the services to them has applied for a licence of a crypto-asset service provider, Trend reports citing the country's Central Bank.

If a company providing crypto-asset services does not intend to continue its business according to the procedure laid down in Regulation (EU) No 2023/1114 of the European Parliament and of the Council on markets in crypto-assets (hereinafter – the MiCA), investors should take steps to protect their assets entrusted to such a company by the end of the transitional period, i.e. 31 December 2025, says Lietuvos bankas.

“Investors may choose where to store their crypto-assets, but it is important that the service is provided by the crypto-asset service provider holding the necessary authorisation. Only the activities of crypto-asset service providers licensed under the MiCA are subject to supervision by Lietuvos bankas and, therefore, an investor will not be able to protect their rights by contacting Lietuvos bankas in case of disagreements with an unlicensed crypto-asset market participant,” says Dalia Juškevičienė, head of the Investment Services and Undertakings Supervision Division of Lietuvos bankas.

As instructed by investors, the operator that does not intend to continue operations should transfer the crypto-assets to a licensed crypto-asset service provider for safekeeping or to the investor's personal self-hosted wallet. It should be noted that a service contract with the crypto-asset service provider of the investor's choice should be concluded prior to the transfer of crypto-assets. At the request of investors, crypto-assets may also be exchanged for funds.

Investors should contact the operator regarding the funds held and order the transfer of their funds to a payment account opened in their name or to the crypto-asset service provider of their choice, if this option is available under the contractual terms.

The transitional period for obtaining a licence of a crypto-asset service provider will end on 31 December 2025 in Lithuania. After this period, crypto-asset service providers that do not obtain a licence according to the procedure laid down in the MiCAwill lose their right to operate.

Activities of crypto-asset service providers will be legal if they will have (or already have) a licence issued in Lithuania or another European Union (EU) Member State in accordance with the MiCA. These service providers must comply with the investor protection measures laid down in the MiCA, ensure a higher level of protection of client assets, transparency and compliance with legal requirements.

The list of crypto-asset service providers licensed in Lithuania is available on Lietuvos bankas website. The list of crypto-asset companies licensed in other EU Member States that provide services without being established in Lithuania can be found here.

Until the end of the transitional period, unlicensed operators are only entitled to provide crypto-asset-related services in their country of registration. It should be pointed out that asset protection for investors who use the services of operators is limited due to lower regulatory requirements. Lists of virtual currency exchange operators and depository virtual currency wallet operators registered in Lithuania are available on the website of the State Enterprise Centre of Registers.

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