Lithuania updates the rules for the user report on crypto assets, which will be fully implemented by the European Union starting in 2026

The State Tax Inspectorate of Lithuania has updated the user reporting program for cryptocurrency service providers, clarifying the reporting scope and operational standards through Order VA-63, aligning national regulations with the EU DAC8 and the OECD Crypto Asset Reporting Framework (CARF). The new regulations require regulated cryptocurrency service providers and local crypto operators to enhance customer due diligence, collect user identity, transaction records, and tax residency information, and record customer identification numbers, transaction logs, and account balances. Entities that have completed registration and reporting obligations in other EU member states are exempt from re-reporting in Lithuania.

The comprehensive operational reporting across the EU will commence on January 1, 2026, with data collected by the platform in 2027 to be automatically exchanged by member state tax authorities starting mid-2027. The new regulations do not change Lithuania's capital gains tax rate on virtual assets, but relevant institutions must update customer access processes and backend systems. Starting from March 2, certain transactions involving electronic money tokens (EMT) must additionally obtain payment service authorization, including transferring EMT on behalf of customers and operating custodial wallets for third-party transfers; exchanges between EMT and exchanges between EMT and fiat currency do not automatically fall under payment services.