The Lithuanian government is planning several actions against crypto companies, aiming to address the significant growth in the cryptocurrency sector and the associated risks. Here's a summary of the main planned actions:

1. Stricter Regulations: The Lithuanian government, in conjunction with the Bank of Lithuania, the Ministry of Internal Affairs, and the Financial Crime Investigation Service (FNTT), is intensifying the requirements for companies providing cryptocurrency-related services in the country.

2. Preventing Money Laundering and Fraud: The authorities have highlighted the innovative nature of the cryptocurrency sector but have also pointed out its potential use for money laundering and fraud. The Bank of Lithuania emphasizes the need for proper control of the cryptocurrency market.

3. Enhanced Supervision: The government plans to ensure stricter oversight of cryptocurrency service providers to effectively identify potential money laundering and terrorist financing activities. This will involve increased collaboration between supervisory authorities such as the FNTT and the Bank of Lithuania.

4. Regulatory Changes: The Ministry of Finance has taken a proactive approach and prepared several legislative amendments to establish new operational requirements for these service providers and formalize their licensing process. The aim is to promote sustainable development, transparency, and higher quality standards in the cryptocurrency sector.

5. Enforcement and Compliance: The FNTT has taken action against cryptocurrency operators for non-compliance, resulting in financial penalties for several companies. The government is committed to taking further measures to ensure stability and manage potential risks in the sector.

6. EU Regulations: Lithuania is preparing for the European Union's Crypto Asset Markets (MiCA) regulations, which will be effective from December 30, 2024. The country is planning to implement the requirements earlier, from December 30, 2024, without utilizing the transitional period specified in the MiCA regulation.

It is evident that the Lithuanian government and relevant institutions are actively working to strengthen regulations, enhance supervision, and mitigate risks associated with the cryptocurrency sector in the country.

For more information, you can refer to the official page at www.lb.lt.

Sources

Crypto Regulation in Lithuania 2023Lithuania as A Crypto Business-Friendly Ecosystem. | by BlockReg Advisors - MediumLithuanian Government Approves Stricter Crypto Regulations - Bitcoin.com NewsLithuania aims to tighten crypto regulation and ban anonymous accounts - Forbes India

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