Lithuania is tightening its regulations on cryptocurrency firms as it prepares to implement new European Union crypto regulations next year. The move comes after the country, once known for its welcoming stance towards fintech startups including crypto companies, witnessed instances of fraud and misconduct within its largely unregulated digital assets sector. With approximately 580 crypto firms currently registered in Lithuania, authorities anticipate that only a fraction will obtain full operating licences by the June 2025 deadline. Those unable to secure permits will be required to exit the ecosystem. In response, the Bank of Lithuania has been bolstering its staff and providing training to better understand the business models and risks associated with crypto firms, reflecting a broader global trend towards increased regulation in the cryptocurrency industry.