Lithuania is shifting its focus, aiming to attract only the largest and most reputable global fintech firms – including Robinhood, which is setting up its first European cryptocurrency hub in the country. Starting next year, only licensed crypto companies will be permitted to operate in Lithuania.
Out of 370 currently active entities, only one has so far secured the necessary authorisation. Most others will likely be forced to cease operations.
A European fintech hub
One of the largest fintech companies in the United States, Robinhood, has chosen Lithuania for its inaugural cryptocurrency trading centre in Europe – a move that not only signals international recognition of Lithuania's regulatory progress but also serves as a clear message: the Wild West era of crypto is over in Lithuania.
Speaking to LRT RADIO, Lukas Jakubonis, head of the Financial Market Development Centre at the Bank of Lithuania, said the decision by one of the world’s top fintechs to set up shop in Lithuania reaffirms the country's status as a European fintech centre.
“For the public to grasp the scale, Robinhood is by some metrics even larger than the well-known Revolut bank operating in Lithuania,” Jakubonis explained.
According to him, Lithuania had long been awaiting the arrival of a major global player:
“Today we have that calibre – it’s Robinhood,” said the Bank of Lithuania representative.
In Lithuania, Robinhood would not only be trading cryptocurrencies, but is also planning to provide a service currently making headlines in global media – the sale of tokenised equities in unlisted companies, including those owned by Elon Musk.
Robinhood has stated that its stock tokens “give retail investors indirect exposure to private markets, opening up access, and are enabled by Robinhood’s ownership stake in a special purpose vehicle.”
However, CNBC reports that one of the companies whose tokenised shares Robinhood offers – leading artificial intelligence company OpenAI – has distanced itself from the initiative.
In a statement on the social media platform X, OpenAI warned users that “these ‘OpenAI tokens’ are not OpenAI equity,” stressing that the company does not endorse Robinhood’s innovation.
The Bank of Lithuania contacted Robinhood on July 8 and is currently awaiting clarification over the tokenised equities.
Stricter licensing requirements
Currently, nearly 400 cryptocurrency exchanges are registered in Lithuania – many at garden shed addresses or similarly obscure locations. Such obscure registrations are enough to allow firms to trade crypto assets from Hong Kong to Australia. Experts warn that this model has enabled money laundering. Come January 1, the vast majority of these companies will no longer be allowed to operate.
“Speaking of the entire grey sector that has been operating in Lithuania until now – thank God – it appears to be fading away. Currently, approximately 370 companies registered with the Centre of Registers that have declared activities related to crypto-asset services. But we can only verify that about 120 of them were actually engaged in any form of economic or commercial activity,” Jakubonis said.
As of next year, crypto trading firms will be required to obtain licences under a tightened regulatory framework. Previously, crypto firms had to secure licenses by June 1, but the deadline was extended in May.
So far, just one has been issued – to Robinhood.
Former MP and now president of the Crypto Economy Organisation, Mykolas Majauskas, says a few more major players are expected to be licensed soon.
“I have no doubt we’ll see a few more licenses in the near future. Crypto companies operate in a dynamic environment, and to be honest, they’ve had little interaction with state bureaucracy. In fact, one could argue their very purpose is to reduce dependency on centralised institutions,” said Majauskas.
Still, he believes stricter regulations were the right move.
“If crypto companies plan to offer services to the general public, they must meet transparency, reliability, and risk management requirements. I believe the Bank of Lithuania is moving in the right direction,” he said.
Majauskas pointed out that at least five of the world’s ten largest crypto firms are already operating in Lithuania. These companies, he said, will likely secure licences.
“Firms must step up. Those that manage to do so will be able to continue operating from Lithuania and serving clients across the EU. Today, at least five of the ten biggest global crypto companies are based here,” he added.
Those unable to secure a licence, however, will have to leave. According to Majauskas, the end of the year will not mark the conclusion of the licensing process – it will continue thereafter.
“Companies operating at present will simply be unable to continue in Lithuania unless they are licensed. If they don’t obtain a licence, they’ll have to move operations to another country,” he said.
However, the Bank of Lithuania does not expect a large number of cryptocurrency companies to remain in the country, forecasting that no more than ten such licences will be granted this year.
“So far, around 30 companies have approached the Bank of Lithuania to apply for crypto-related licences. Only a few have been successful. At present, ten more applications are under review, so we may see a few more approved,” said Jakubonis.
Wanted: only the best
According to Jakubonis, Lithuania wants to attract only the biggest and most transparent global players – those with clean records and strong reputations. The days of shady firms registered to summer cottages in the Lithuanian countryside are numbered.
“Just as we succeeded in attracting Robinhood, we’re working to bring in other firms too. But from the outset, we’ve declared that we don’t want volume – we want quality. Only the world’s biggest, best-known, reputable firms that are clean and don’t carry reputational risk should operate in Lithuania,” he explained.
Linas Kmieliauskas, a cryptocurrency market expert and training director, said that many smaller operators will now be forced to look elsewhere, to jurisdictions with looser rules. Lithuania, meanwhile, has opted to take the high road.
“The question is what awaits the smaller players. For them, these may well be the last few months of operation in Lithuania – after that, they’ll need to find alternatives elsewhere. Given the lack of harmonisation across EU jurisdictions, the verification process differs; some regulators are stricter than others,” Kmieliauskas said.
Majauskas, representing crypto-capital companies, added that the bigger players contribute tens of millions of euros to Lithuania’s economy over just a few months – making it all the more crucial, he believes, to focus on proper licensing.
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