According to Bloomberg, Lithuania will screen out many crypto companies operating in the country when it starts issuing licenses next year. Lithuania has registered around 580 crypto-asset companies, but the number that will be fully licensed is expected to be “significantly reduced.” Lithuania is working to tighten controls on crypto, mirroring steps taken by regulators around the world over the past three years. Financial centers such as Singapore, Hong Kong and Dubai have introduced comprehensive digital asset regulatory regimes since 2021. Lithuania already has seven of the largest crypto exchanges in the world. Some digital asset companies operating in Lithuania are already licensed in other EU countries, meaning they may not need to be authorized in Lithuania. The EU’s first harmonized crypto legislation, the “Crypto-Asset Market”, will come into effect in January 2025. Lithuania is also implementing its own legislation to govern crypto, including giving the country’s Financial Intelligence Unit, an anti-money laundering watchdog, the power to terminate company registrations. Lithuania’s central bank has begun investing in ensuring its employees understand crypto companies’ business models. The central bank will start the licensing pre-assessment process in July, six months before MiCA takes effect.