Bloomberg: Lithuania will implement a strict pre-assessment licensing procedure for cryptocurrency companies starting in July, and applicants who do not pass must exit

ChainCatcher news, according to Bloomberg, Lithuania has positioned itself as a hub for fintech startups over the past decade, and will eliminate many cryptocurrency companies operating there when it begins issuing licenses next year. Simonas Krepsta, a member of the board of the Bank of Lithuania, stated that although Lithuania has registered about 580 crypto asset companies, the number of companies expected to obtain full licenses will be "far below this." He mentioned in an interview on Tuesday that the process will conclude in June 2025, and companies that do not pass the application will "leave the ecosystem."

Krepsta stated, "The cryptocurrency industry has failed in a regulatory lax environment. We have a lot of evidence of this in the U.S., other European countries, and Lithuania. We have seen quite a number of failures, corruption cases, etc., which is a huge blow to the industry." He also noted that seven of the world's top cryptocurrency exchanges are already operating in Lithuania. He said that some digital asset companies operating there have already obtained licenses in other EU countries, which means they may not need to obtain authorization in Lithuania. It is reported that the EU's first unified cryptocurrency legislation, the "Crypto Assets Market," will come into effect in January 2025.

Additionally, Krepsta mentioned that the central bank has been investing to ensure its staff understands the business models of cryptocurrency companies, and the central bank will begin implementing a licensing pre-assessment procedure in July, six months before MiCA takes effect.