Lithuania Updates Crypto Reporting Rules to Align With EU DAC8 Framework

The Lithuanian government has officially updated its regulatory framework regarding the reporting obligations of crypto-asset service providers (CASPs). According to Order No. VA-63, issued by the State Tax Inspectorate, the country is harmonizing its domestic oversight with the European Union’s DAC8 directive and the OECD’s Crypto-Asset Reporting Framework (CARF). This legislative adjustment aims to enhance fiscal transparency and combat tax evasion within the digital asset sector by standardizing how data is collected and shared across borders.

New Data Collection Requirements for Service Providers

Under the revised guidelines, all entities operating as virtual asset service providers in Lithuania must adhere to rigorous documentation standards. The scope of information to be gathered includes user identification details, comprehensive transaction records, and year-end account balances. Furthermore, providers are now mandated to verify and report the tax residency status of their clients to ensure accurate cross-border data attribution.

• Identification of legal and natural persons engaging in crypto transactions.
• Detailed logs of both domestic and international transfer activities.
• Verification of tax jurisdictions for all active account holders.
• Maintenance of historical balance data for annual fiscal reporting.

Integration with EU-Wide Automatic Data Exchange

A key component of this update is the elimination of redundant bureaucratic hurdles. Entities that have already fulfilled their reporting obligations in another EU member state are granted an exemption from duplicate filings in Lithuania, provided they can prove compliance in the alternate jurisdiction. This measure is intended to streamline operations for large-scale exchanges operating across multiple European markets. The data collected under these new rules will be integrated into a centralized system for the automatic exchange of information between tax authorities, which is scheduled to become fully operational by mid-2027.

The implementation of Order No. VA-63 signals Lithuania's commitment to the evolving global standards of financial surveillance in the blockchain space. By adopting the CARF framework early, the Baltic nation positions itself as a compliant hub for digital finance while preparing its infrastructure for the mandatory EU-wide transparency deadlines. As the 2027 activation date for automatic data exchange approaches, market participants must ensure their internal compliance systems are robust enough to meet these heightened transparency expectations.