Lithuania Updates Crypto Reporting Rules to Match EU DAC8 and OECD CARF

ChainCatcher report: Lithuania's State Tax Inspectorate has revised reporting procedures for cryptoasset service providers under Order VA63, setting out the scope and operating requirements to bring domestic rules into line with the EU's DAC8 and the OECD's CryptoAsset Reporting Framework (CARF). The updated rules require regulated cryptoasset service providers and local crypto operators to strengthen customer due diligence. Firms must collect user identity details, transaction records and tax residency information, and retain customer identification numbers, transaction logs and account balance data. Providers that have already completed registration and reporting duties in other EU member states will not need to file duplicate reports in Lithuania. EU-wide operational reporting is scheduled to begin on January 1, 2026. Platforms will collect the relevant data in 2027, with automatic information exchange among member-state tax authorities set to start in mid-2027. The changes do not affect Lithuania's capital gains tax rate on virtual assets, but institutions will need to update customer onboarding processes and backend systems. Separately, from March 2, certain transactions involving electronic money tokens (EMTs) will require additional payment services authorization. This includes transferring EMTs on behalf of clients and operating custodial wallets that enable third-party transfers. EMT-to-EMT exchanges and EMT-to-fiat conversions are not automatically treated as payment services.