LITHUANIA Law and Practice Contributed by: Tadas Kuzminskas, APB “Leagus”
• State Tax Inspectorate ( Valstybinė mokesčių ins - pekcija ) – Responsible for tax assessment, report- ing and enforcement in relation to crypto transac- tions (including income tax, corporate tax and VAT). It issues guidance, conducts audits and enforces tax‑reporting obligations. • State Data Protection Inspectorate ( Valstybinė duomenų apsaugos inspekcija ) – Enforces GDPR compliance where personal data is processed in blockchain/crypto contexts. 2.2 Crypto-Asset Regulatory Frameworks Classification of Crypto-Assets Regulators in Lithuania classify crypto‑assets by func- tion and by existing EU categories. MiCAR categories (directly applicable in Lithuania): • electronic money tokens (EMT) – a type of crypto- asset that purports to maintain a stable value by referencing the value of one official currency; • asset-referenced tokens (ART) – a type of crypto- asset that is not an electronic money token and that purports to maintain a stable value by ref- erencing another value or right or a combination thereof, including one or more official currencies; and • utility tokens – a type of crypto-asset that is only intended to provide access to a good or a service supplied by its issuer. Financial instrument/security classification: • tokens that meet the legal test of transferable securities or other regulated financial instruments fall under securities/financial‑instruments law (MiFID, Prospectus Regulation) and are regulated as such. Regulated Activities Crypto‑assets in Lithuania sit within existing regula- tory frameworks (AML, tax, securities, payments, data protection, consumer protection and insolvency). The MiCAR regime applies directly, and Lithuania has adopted the Law on Crypto‑Asset Markets to ensure the fair, open and efficient functioning of crypto‑asset markets.
Under MiCAR in Lithuania, the following activities are regulated. • CASP activities – custody and administration of crypto-assets on behalf of clients; operation of a trading platform for crypto-assets; exchange of crypto-assets for funds; exchange of crypto-assets for other crypto-assets; execution of orders for crypto-assets on behalf of clients; placing of cryp- to-assets; reception and transmission of orders for crypto-assets on behalf of clients; providing advice on crypto-assets; portfolio management on crypto-assets; transfer services for crypto-assets on behalf of clients. • Issuance and offering of EMTs and ARTs: public offerings of EMTs and ARTs require white papers and disclosures; specific requirements for EMTs and ARTs apply (eg, capital and consumer‑protec- tion rules). Tokenised financial instruments that qualify as trans- ferable securities, e‑money or other regulated instru- ments remain subject to existing sectoral laws. Prohibited Activities Lithuanian law does not prohibit crypto‑asset activi- ties or products per se, but unlawful or high‑risk conduct is prohibited (eg, unlicensed provision of regulated services (CASP activities), offerings that evade AML/sanctions, and non‑compliant issuance of asset‑referenced/e‑money tokens or tokenised securities). Legislative Regulatory Developments No major new crypto-asset regulations are expected in the next 12 months for Lithuania, but further nation- al implementing measures and supervisory guidance may impose additional practical requirements on CASPs. 2.3 Regulated Firms and Legal Wrappers If an investor invests in a fund whose strategy includes investing in crypto‑assets or in the capital of firms pro- viding crypto‑related services, they are investing in the fund itself and subscribing for its units. Depending on the fund, the investor may benefit from stronger pro- tections or, conversely, may be ineligible to invest (for example, where the fund is restricted to professional
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