Lithuania Crypto License for Your Exchange: Fast, Legal, EU-Ready

Why Lithuania is a strategic choice for a MiCA crypto license

Lithuania has become a strategic jurisdiction for entering the EU market with a Lithuanian crypto authorization, as since 2024 all new registrations are regulated under MiCA (Markets in Crypto-Assets Regulation). Every new crypto license in Lithuania is now issued under the MiCA framework.

MiCA offers the following advantages:

• Passporting rights: A single authorization issued in Lithuania grants access to the entire EU market.
  
• Regulatory consistency and harmonization: All VASPs and crypto exchanges must comply with unified requirements.
  
• Enhanced consumer and investor protection.
  
• Transparent application process and clear requirements.
  
• Ongoing supervision by the Bank of Lithuania as the national competent authority.

Every licensed company is required to comply with MiCA rules regarding capital, adherence, consumer protection, financial transparency, and cash flow.

The supervision of VASPs (Virtual Asset Service Providers) is carried out by the Bank of Lithuania, acting as the competent authority under MiCA. Its functions and powers are aligned with those of other EU member states – aimed at simplifying market entry for international companies while ensuring minimum standards for AML, KYC, and overall security.

Advantages of obtaining a crypto license in Lithuania

Lithuania remains one of the most convenient and attractive options for entering the European crypto market – both for startups and established crypto companies. With the introduction of MiCA, the licensing procedure has become more transparent, delegable, and legally refined.

1. Full access to the EU market

• A cryptocurrency license grants the right to serve clients in all 27 EU and EEA countries under a unified law.
• The cryptocurrency license acts as a passport for providing crypto services without the need for additional local registrations.

2. Fast and predictable licensing

• Compared to other EU countries, the application and review process is simpler and more understandable in terms of law.
• The Bank of Lithuania ensures a clear and structured procedure, especially for companies with prepared documentation and a well-established adherence system (AML, KYC, data protection).
• Even with higher initial preparation costs, companies save time during registration.

3. Favorable regulatory environment

• The regulator is open to the virtual asset market and supports industry development.
• Lithuanian VASPs can benefit from more flexible corporate structures.
• Up to 95% of current Lithuanian legislation already aligns with MiCA standards, ensuring a smooth transition and business continuity.

4. Low costs and attractive taxation

• The costs of company formation and operations are among the lowest in the EU.
• A simple and competitive tax regime with clear rules for cryptocurrency businesses.

5. Banking and infrastructure support

• Lithuanian crypto companies can open local and international bank accounts, accept payments, and work with numerous payment providers.
• Experienced regulatory officers, lawyers, and specialized consultants are also available.

6. Developed and supported ecosystem

• Dozens of companies in virtual currencies, fintech, and blockchain are actively growing.
• The government supports tech projects and actively invests in digital innovation.

Main benefits

Advantage	Details
Access to the EU market	Single license = access to all EU/EEA countries
Registration speed	Predictable, fast processing time
Business-friendly taxation	Competitive corporate income tax (15–20%)
Regulatory compliance support	Local experts in AML, KYC, and regulatory matters
Modern legal framework	Smooth transition to MiCA, clear rules
Banking and payments	Local/international accounts available for crypto companies

Prifinance provides full support at every stage of obtaining a cryptocurrency license – from selecting the corporate structure and preparing the documentation package to liaising with the Bank of Lithuania and providing post-licensing assistance. We help clients effectively leverage the opportunities of the jurisdiction while ensuring full MiCA adherence and minimizing regulatory risks.

Comparison: Lithuania Crypto License (MiCA) vs. other jurisdictions

The MiCA regulation provides companies obtaining a Lithuanian crypto license with a level playing field compared to leading European and global crypto jurisdictions.

Below is a comparison of the Lithuanian license with other major markets:

Jurisdiction	License type	Regulator	Market access	Corporate tax	Setup time	Key advantages	Compliance burden
Lithuania (MiCA)	MiCA VASP	Bank of Lithuania / ESMA	Full EU/EEA	15–20%	2–4 months	EU passporting, fast and predictable process	High (MiCA)
Estonia (MiCA)	MiCA VASP	FIU / ESMA	Full EU/EEA	20%	3–5 months	Crypto ecosystem, EU access	High (MiCA)
United Kingdom	FCA Crypto Asset Registration	FCA	UK, EEA (limited)	19%	4–8 months	Strong legal certainty, reputable regulator	High
USA	MSN	FinCEN, State Regulators	USA only	21%+ (state dependent)	6–18 months	Huge market, strong investor protection	Very High
Dubai (VARA/DMCC)	VARA/DMCC Crypto	VARA, DMCC, ADGM	UAE, MENA	0% / 9%	1–3 months	Tax efficiency, fast-track process, no currency restrictions	Moderate/High
Switzerland	FINMA/SRO	FINMA, SRO	Switzerland, global	12–18%	2–6 months	Crypto Valley, flexible tax options, SRO model	Moderate/High

Key advantages of the Lithuanian crypto license compared to other jurisdictions

• A cryptocurrency authorization under MiCA provides access to the entire EU and EEA area, unlike jurisdictions with limited national regimes (e.g., the United Kingdom or the United States).
• Lithuania offers one of the fastest and most predictable licensing processes within EU legislation, supported by local experts.
• Tax rates and setup costs remain competitive compared to Western European countries and the U.S.
• Despite the high compliance requirements under MiCA, they are balanced by legal certainty and unique access to all major EU markets.
• Despite the high compliance requirements under MiCA, they are balanced by legal certainty and unique access to all major EU markets, making the Lithuania crypto license requirements an attractive starting point for businesses.

Our experts

Our team consists of professionals with deep knowledge of the MiCA regulation and proven experience in successfully guiding projects through the process of obtaining a Lithuania crypto license. We provide full legal and compliance support – from document preparation and communication with the Bank of Lithuania to post-licensing assistance, for both startups and international VASP companies.

Everything you need to know about a crypto activity license in Lithuania

Category	Details
License type	Lithuania crypto and crypto exchange license in Lithuania
Regulator	Bank of Lithuania
Legal framework	EU MiCA Regulation (Markets in Crypto-Assets)
Jurisdiction coverage	All EU and EEA countries (via passporting)
Types of activities	Exchange (crypto – crypto, fiat – crypto), custody, wallet solutions, payments
Time to obtain	Typically 2–3 months (if documents are fully prepared)
Minimum share capital	€125,000–€150,000 (depending on business scope)
Presence requirements	Lithuanian UAB, physical office, local compliance officer
Tax rate	15% (corporate income tax)
VAT	Most crypto services are VAT-exempt
Accounting & reporting	Annual financial reporting and audit required
Compliance obligations	AML, KYC, transaction monitoring, reporting, internal policies
License duration	Unlimited, subject to annual renewal and compliance
Additional conditions	Each new service requires separate authorization
Lithuania’s advantages	Fast process, clear regulation, low costs, DTAs, developed fintech ecosystem
Risks without a license	Fines, sanctions, reputational damage, possible criminal liability

Obligations and requirements for obtaining a crypto license in Lithuania

Obtaining a cryptocurrency exchange license requires applicants to meet legal, organizational, and compliance obligations.

These requirements apply to both new applicants and existing VASPs.

All entities are subject to oversight by the Bank of Lithuania and must adhere to the unified EU-wide MiCA standards.

Below are the minimum conditions for obtaining the authorization:

Requirement	Description
Company registration	Establishment of a Lithuanian legal entity (UAB). 100% foreign ownership is allowed.
Physical presence	Registered office and local management in Lithuania. Physical and operational presence is mandatory.
Share capital	Minimum paid-up share capital (typically €125,000–€150,000 or more, depending on the type of activity).
Governance and compliance	Appointment of a competent management board and compliance officer. All must pass background checks and “fit and proper” tests.
AML/KYC compliance	Comprehensive Anti-Money Laundering (AML) and Know Your Customer policies in line with MiCA, Lithuanian, and EU laws.
Internal controls	Implementation of internal control systems, IT security, risk management, and audit procedures.
Business plan	Detailed business plan, financial forecasts, and documentation demonstrating compliance readiness.
Submission documentation	Submission of all required documents to the Bank of Lithuania, including policies, manuals, and personal data of directors/UBOs.
Ongoing reporting	Regular reports to the regulator: financials, AML activity, compliance audits, etc.
Application fee	Payment of government and regulatory fees.

Important considerations:

• Each Lithuanian cryptocurrency license covers only the specific activities listed in the initial filling. Expanding services requires submitting a new authorization request.
• The licensing authority may request meetings with management, clarifications, and additional information before full compliance is confirmed.
• A licensed company is required to continuously comply with AML, CFT, and consumer protection regulations.

Basic requirements

Category	Requirements for a Crypto License in Lithuania (MiCA)
Legal entity	UAB (Private Limited Liability Company), 100% foreign ownership allowed
Capital	€125,000–€150,000+ (depending on the services offered)
Management	Local director/compliance officer, must be professional and fit & proper
Office	Registered office, physical presence in Lithuania
AML/KYC	Mandatory, with detailed policies required
IT & security	Strong internal systems and audit mechanisms
Regulator	Bank of Lithuania, oversight by ESMA

Prifinance provides comprehensive support in meeting regulatory requirements for obtaining a crypto license. We prepare the complete set of documents – including AML/KYC policies, business plan, and internal procedures – ensure full compliance with MiCA standards, and manage communication with the Bank of Lithuania. Thanks to our experience, you go through the licensing process confidently and without critical errors.

Registration of a crypto company in Lithuania: Steps and timeline

The process of obtaining a Lithuanian cryptocurrency exchange license under the MiCA regulation involves sequential stages that require close coordination with the Bank of Lithuania and extensive pre-submission preparation of all compliance documentation for the regulator.

Key steps:

1. Preliminary planning and jurisdiction analysis

• Defining the intended cryptocurrency services (cryptocurrency exchange, custody, transfer, brokerage, etc.);
• Engaging local legal and compliance consultants.

2. Company register

• Establishing a Lithuanian UAB (private limited liability company);
• Appointing directors, a compliance officer, and selecting a local office.

3. Documentation preparation

• Drafting all required policies and procedures: AML/KYC, risk management, IT security, and the business plan;
• Collecting and organizing the complete set of corporate and regulatory documentation for submission.

4. Document filling

• Filling the complete documentation package with the Bank of Lithuania;
• Paying registration and government fees.

5. Regulatory review

• Review of documentation, potential requests for clarifications, interviews with management;
• Assessment of internal controls and all compliance systems.

6. License issuance

• Upon approval, the license is granted and regulated operations may begin.

7. Post-licensing compliance

• Ongoing adherence to AML/KYC regulations, regular reporting to the Bank of Lithuania, and annual license renewal.

Typical timelines

Stage	Estimated duration
Company setup & planning	1–2 weeks
Document preparation	2–4 weeks
Application review	4–8 weeks (may vary)
Total (on average)	2–3 months

Notes:

• Application timelines depend on the complexity of the business model, the regulator’s workload, and the completeness of the submission.
• MiCA introduces stricter review criteria and more detailed documentation requirements compared to the previous VASP regime in Lithuania.
• Consult with local compliance experts in advance to avoid delays.

Taxation of companies with a Lithuanian crypto license

Operating under a Lithuanian cryptocurrency exchange license allows companies to benefit from one of the most transparent and business-friendly tax regimes in the EU. Understanding Lithuania’s tax system is essential for maintaining cost control and ensuring compliance with regulatory requirements.

Key tax features

Tax type	Rate/regime	Notes
Corporate income tax	15% (standard rate for most companies)	May be reduced for small businesses; certain incentives may apply
Personal income tax	20%-32% (progressive)	Applies to employees and shareholders on salaries/dividends
VAT	21% (standard); generally not applied to crypto exchange services	Ancillary services may be subject to VAT
Withholding tax	15% on dividends to non-EU shareholders; 0%/reduced under treaties	Many double taxation treaties reduce or eliminate withholding tax
Capital gains tax	Corporate profits taxed as business income	No separate capital gains tax for companies
Other local taxes	Minimal; municipal taxes may apply	Substance requirements must be observed

Tax incentives for crypto businesses

Key tax advantages

1. Low effective tax rate:
The corporate income tax is 15%, one of the lowest rates in the EU for licensed financial and virtual asset service providers.

2. Clear accounting criteria:
Lithuanian tax authorities have issued detailed guidance on the accounting of cryptocurrency transactions and the valuation of virtual assets.

3. No special crypto tax:
Crypto business income is treated as regular corporate income, simplifying tax compliance.

4. Double Taxation Avoidance Agreements (DTA):
Lithuania has signed a wide range of DTAs, helping to minimize withholding taxes and cross-border tax liabilities for international investors.

Tax compliance requirements

1. Annual reporting and audit:
All companies holding a Lithuania crypto license must submit audited financial statements and annual tax returns.

2. Substance requirements:
To qualify for local tax rates, businesses must demonstrate actual presence, including a local office, employees, and operational activity.

3. Transfer pricing:
Cross-border transactions within group companies are subject to standard EU transfer pricing rules.

Tax type	Standard rate	Applies to
Corporate income tax	15%	Company profits
VAT	21% (exempt for core crypto services)	Most goods/services (not crypto exchanges)
Withholding tax	0–15% (based on treaty)	Dividends, royalties, etc.

FAQ

1. What is the Lithuania cryptocurrency license under the MiCA regulation?

It is a valid authorization issued by the Bank of Lithuania under the EU MiCA regulation, allowing the provision of virtual asset services (cryptocurrency exchange, custody, brokerage, payments) within the EU/EEA.

2. What types of activities are covered by the cryptocurrency exchange license in Lithuania?

Operation of a cryptocurrency exchange, conducting crypto-to-crypto and fiat-to-crypto transactions, asset custody, wallet services, and crypto payment processing. The licence is issued based on the list of services specified in the application.

3. What is the minimum share capital required to obtain the Lithuanian cryptolicense?

Usually from €125,000 to €150,000, depending on the volume and type of activity.

4. How long does it take to obtain the Lithuanian license?

Typically 2-3 months, provided the application and documentation fully comply with MiCA requirements.

5. Is physical presence in Lithuania required?

Yes. It is necessary to register a Lithuanian company, have a physical office, and appoint a local compliance manager to confirm the presence of substance.

6. Can the Lithuanian license be used throughout the EU?

Yes. A licence issued under MiCA allows for passporting rights throughout the EU/EEA without obtaining additional authorizations.

7. What are the tax obligations of licensed companies?

The corporate tax rate is 15%. Annual financial reporting is mandatory. Most crypto services are exempt from VAT.

8. What compliance requirements apply?

Regular AML/KYC checks, transaction monitoring, regulatory reporting, and financial audits in accordance with EU and Lithuanian legislation.

9. How does Lithuania compare to other EU countries in terms of licensing?

Lithuania is known for its efficiency and transparency of procedures, has a favorable tax regime, and is considered a preferred jurisdiction for entering the regulated EU crypto space.

10. What are the risks of operating without a Lithuanian cryptocurrency license?

Violating the law leads to sanctions, fines, reputational damage, and in some cases – criminal liability. A valid Lithuania cryptocurrency license is required for lawful operations.