Lithuania has sharply narrowed its crypto sector after the European Union’s Markets in Crypto-Assets Regulation, or MiCA, took effect, signalling a clear policy choice not to become a “crypto haven” even at the risk of losing major taxpayers.
After the New Year, only three companies held MiCA-compliant licenses in Lithuania, according to the central bank. They are Robinhood Europe, Nuvei Liquidity and Decentralized, which operates under the Coingate brand. Notably absent is Bifinity, a Lithuania-registered company linked to global crypto giant Binance.
If Bifinity were to cease operations in Lithuania, the country would lose one of its largest corporate taxpayers. Data from the State Tax Inspectorate show the company has paid nearly 111 million euros in taxes since 2022, including 27.6 million euros in 2024 alone.
The Bank of Lithuania said neither Bifinity nor Binance currently holds a MiCA license issued under the regulation’s procedures and therefore does not have the right to provide crypto-asset services in Lithuania. The central bank said it has received more than 100 applications from nearly 60 companies and is currently reviewing six more.
Binance representatives told LRT.lt that the company is actively seeking a MiCA license and continues to cooperate with regulators across the region.
Bifinity was established in Lithuania in 2020 and until the end of 2024 was directly owned by Binance founder Changpeng Zhao, one of the world’s wealthiest individuals. Zhao has faced legal troubles in the United States, including a multibillion-dollar settlement over anti-money laundering failures, though he was pardoned last year by then-President Donald Trump, a move that drew criticism.
Since 2025, Bifinity’s indirect shareholders have been two Chinese nationals identified by Binance as members of its founding team. The company employs 15 people in Lithuania, with average gross monthly salaries of nearly 6,000 euros, and reported 124 million euros in revenue and 62.2 million euros in profit in 2024.
Despite its financial footprint, Lithuania’s regulators have held firm. Gediminas Laucius, vice president of the Crypto Economy Organisation, said Lithuania has clearly decided not to position itself as a low-barrier jurisdiction for crypto firms.
Lithuania has chosen a strategic direction to license only those companies that are genuinely ready to invest in real economic substance, establish headquarters here, ensure transparent ownership and meet strict national security and compliance standards, Laucius said.
Lithuania has clearly decided not to be a paradise for crypto-asset service providers, according to Laucius. “I do not mean that other EU countries are, but Lithuania has opted not to participate in forum shopping.”
Under MiCA, Lithuania initially opted for a shorter transitional period, later extended to 12 months, which expired on January 1. Since then, crypto companies established in Lithuania without a MiCA license can no longer legally provide services from the country, regulators say. Operating without authorisation could lead to administrative or even criminal liability.
The crypto scene has shrunk dramatically. About a year ago, Lithuania’s registries listed more than 360 virtual currency exchange and wallet operators. Now, only three are licensed domestically, though firms licensed in other EU countries may still serve Lithuanian clients under certain conditions.
Some market participants caution against drawing final conclusions. Crypto analyst Linas Kmieliauskas said it remains unclear whether companies like Bifinity may still secure licenses later this year or continue operating in Lithuania in a more limited capacity.
“It is hard to say whether what’s happening is a maturation process or erasure of the sector under dubious justification,” he said. “Several dozen companies applied for licenses, around ten were processed, and only three have received licenses (so far). It’s possible that the Bank of Lithuania is continuing to evaluate the remaining applications and this year we’ll see more licensed companies, maybe even Bifinity itself.”
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