Lithuania is ending its loose rules on cryptocurrency businesses. From next year, only licensed crypto companies will be allowed to operate in the country. Out of around 370 companies currently active, only one—Robinhood—has received a license so far. Most others may need to shut down or leave.
Robinhood Chooses Lithuania
Robinhood, a large fintech company from the U.S., is opening its first European crypto office in Lithuania. The country sees this as proof it is becoming a serious fintech hub in Europe.
Lukas Jakubonis from the Bank of Lithuania said this is a major moment:
“Robinhood is even bigger than Revolut in some ways. We’ve waited a long time for a global player like this.”
Robinhood plans to offer more than just crypto trading. It wants to sell tokenised stocks of private companies—like those owned by Elon Musk. These stock tokens allow people to invest in private companies in a new way.
However, OpenAI, one of the companies mentioned, said it does not support Robinhood’s token offerings and warned users that these tokens are not real shares in OpenAI. The Bank of Lithuania has asked Robinhood to explain more about how these tokens work.
Tougher Rules Starting in 2025
Currently, nearly 400 crypto businesses are registered in Lithuania, many at suspicious or fake addresses. Some of these companies may be involved in money laundering. That’s why starting January 1, 2025, only licensed crypto companies will be allowed to continue operating.
Jakubonis explained that although 370 companies are registered, only about 120 are actually doing any business.
The new rules were supposed to start on June 1, but the deadline was extended. So far, only Robinhood has received a license. Others, including some of the world’s biggest crypto firms, are expected to follow soon.
Former MP Mykolas Majauskas, now head of the Crypto Economy Organisation, believes the stricter rules are a good thing. He said:
“If companies want to serve the public, they must be transparent and reliable.”
He added that at least five of the top 10 global crypto companies are already in Lithuania and will likely stay.
Only the Strong Will Remain
Companies that don’t get a license will have to leave the country. The Bank of Lithuania expects no more than 10 licenses to be issued this year.
About 30 companies have applied, and only a few have passed so far. Ten more applications are under review.
Lithuania’s goal is clear: quality over quantity.
“We want only the best – large, clean, global companies with strong reputations,” said Jakubonis.
Crypto expert Linas Kmieliauskas said that small operators may now look to move to countries with easier rules.
Majauskas added that big crypto firms can bring tens of millions of euros into Lithuania’s economy. That’s why he supports the push for proper regulation and licensing.