LITHUANIA Law and Practice Contributed by: Donatas Šliora and Marius Matiukas, ADON legal
challenge for such companies is licensing and compliance under MiCA. Robo-advisory Automated investment platforms are present in the Lithuanian market. However, regulatory scrutiny around client onboarding and risk pro - filing, as seen in other European jurisdictions, has impacted on this subsector. Legacy players Traditional Lithuanian banks are engaging with this fintech evolution through heavy investment in IT solutions and the transition from traditional face-to-face service provision of services to online communication. In-house innovation Dedicated internal teams are being built, focused on fintech innovation and developing solutions to compete directly with independent players. 2.2 Regulatory Regime Payments Lithuania’s payment sector is primarily shaped by the Law on Payments, which transposes the EU’s Payment Services Directive 2 (PSD2) and Guidelines for the Provision of Payment Servic - es issued by the Bank of Lithuania. Companies intending to act as payment initiation service providers (PISPs) or account information service providers (AISPs) must register with the Bank of Lithuania, with licensing requirements vary - ing depending on the specific services offered. Overall, PSD2 provides a robust EU-wide frame - work, while Lithuanian guidance ensures clarity in practical implementation. Crypto-Assets MiCA will significantly impact on Lithuania’s crypto landscape. MiCA harmonises licensing and oversight across the EU, and the Bank of
Lithuania is the key supervisor for MiCA com - pliance within Lithuania. It is important to con - sider how MiCA will define different categories of crypto-asset service providers, and whether specific national-level regulations might emerge on use cases not fully addressed by MiCA. Trading and Investment Activities The Law on Markets in Financial Instruments implementing the EU’s Directive on Markets in Financial Instruments (MiFID II), together with the EU’s Regulation on Markets in Financial Instruments (MiFIR), serves as the cornerstone of Lithuania’s regulatory framework for trad - ing and investment activities. Investment firms, brokers, robo-advisers and trading platforms all fall under this regulatory umbrella. The specific licensing and compliance obligations depend heavily on the exact services provided. MiFID II/MiFIR provide a robust foundation at the EU level, making the accurate classification of busi - ness models essential for determining the appli - cable rules. Insurtech The Law on Insurance outlines the framework for insurance activities in Lithuania. Even innova - tive Insurtech models must adhere to licensing, capital and consumer protection requirements. The Bank of Lithuania’s regulatory sandbox pro - vides a space for testing new insurtech products under supervision. Potential friction points can arise when insurance law does not perfectly align with cutting-edge insurtech concepts, making the sandbox a valuable tool. Crowdfunding The EU’s Regulation on European crowdfund - ing service providers for business (the “Crowd- funding Regulation” ) takes precedence, super - seding previous national Lithuanian law. There is limited room for national discrepancy in this
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