Lithuania is making significant changes to its cryptocurrency industry by introducing stricter regulations and licensing requirements for crypto firms starting next year. Simonas KrΔ—pΕ‘ta, a board member at the Bank of Lithuania, shared in a recent Bloomberg interview that the country plans to reduce the number of crypto companies operating within its borders.

Key Points:
– Lithuania aims to implement tighter licensing requirements for crypto firms.
– The new regulations may lead to a decrease in the number of crypto companies in the country.
– Stricter measures are being introduced to prevent failures, embezzlement, and illicit activities in the crypto industry.

Currently, Lithuania is home to approximately 580 crypto firms, but only a fraction of them are expected to meet the new licensing criteria. The regulatory changes are set to take effect by June 2025, and those companies that fail to comply may be forced to exit the market.

Concerns about illicit activities such as money laundering and fraud have prompted Lithuania to enhance its regulatory oversight capabilities. The country is working on developing its own legislative framework to govern the crypto industry and strengthen the supervision of its Financial Intelligence Unit.

In conclusion, Lithuania’s upcoming regulatory overhaul signals a shift towards a more controlled and compliant cryptocurrency environment. Stay tuned for more updates on cryptocurrency news on Global Crypto News.

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