Lithuanian authorities intend to adopt a law on the regulation of cryptocurrencies before the EU

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Government of the Republic of Lithuaniaplans to develop legislation to regulate the cryptocurrency market before the activities of “less than decent companies” can undermine the image of the industry.

Deputy Minister of Finance MindaugasMindaugas Liutvinskas reported at a meeting with journalists that Lithuania plans to create a national crypto-licensing system without waiting for the adoption of a unified law on regulation of crypto-asset markets in EU countries.

“We support MiCA - this is important andthe right decision, but the EU law will not be adopted until 2025. We decided now to take practical steps and do all our homework to strengthen our own regulatory framework,” said Lyutvinskas.

The deputy minister believes that the government must get ahead of any negative consequences for investors:

“Reputation is an important resource in thisbusiness sphere. The worst-case scenario for both the government and market participants is if some bad situation occurs, for example, a scandal in terms of money laundering or sanctions evasion.”

The draft future law will be discussed inparliament of Lithuania this summer, the official promised. The document includes requirements for companies that want to operate in the country. These are requirements for a minimum capital of €125,000, as well as the mandatory presence of anti-money laundering specialists and representative offices in Lithuania for the crypto company. 

The Ministry of Finance does not insist on a mandatory procedurecustomer identification (KYC). In addition, officials criticize the European Parliament for being too strict in overseeing transactions with crypto wallets.

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In March 2022, Estonia&nbsp;introduced&nbsp;inA number of new rules to combat money laundering and terrorist financing are in effect, which tighten the requirements for the registration of cryptocurrency companies with an Estonian license.