Lithuania Updates User Reporting Rules for Crypto Assets, Effective 2026

The Lithuanian State Tax Inspectorate has updated the user reporting procedures for crypto asset service providers, clarifying the scope and operational standards of reporting through Order VA-63, in alignment with the EU DAC8 and the OECD Crypto Asset Reporting Framework (CARF). The new regulations require regulated crypto asset service providers and local crypto operators to enhance customer due diligence by collecting user identity, transaction records, and tax residency information, as well as recording customer identification numbers, transaction logs, and account balances. Entities that have completed registration and reporting obligations in other EU member states are exempt from duplicate reporting in Lithuania. Comprehensive operational reporting across the EU will commence on January 1, 2026, with data collected by platforms in 2027 to be automatically exchanged by member state tax authorities starting mid-2027. The new regulations do not change the capital gains tax rate on virtual assets in Lithuania, but relevant institutions must update their customer onboarding processes and backend systems. Starting March 2, certain transactions involving electronic money tokens (EMT) must additionally obtain payment service authorization, including transferring EMT on behalf of clients and operating custodial wallets for third-party transfers; exchanges between EMT and the conversion of EMT to fiat currency do not automatically qualify as payment services.

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