Tier 1 Law Firm Sorainen provides insight into phase 2.0 of Lithuania’s fintech growth
Post-Brexit, Lithuania became the place to obtain an EU financial services licence. Driven by a cooperative fintech strategy between the Ministry of Finance and Lithuania’s Central Bank, the country reached 282 fintechs employing 7,800 people by 2024.
Another driving factor was the introduction of a specialised banking licence that allowed players to obtain a licence with smaller capital requirements. By Q3, 2025, these specialised banks had over €1.6 billion in assets.
“As a mature market, Lithuania’s current regulatory focus is on protecting financial stability and preventing AML/TF issues rather than rapid growth,” says Akvile Jurkaityte, Senior Associate at Sorainen Law Firm, where she specialises in fintech, crypto assets, and compliance issues.
Sorainen is a top-tier Baltic law firm with over 300 lawyers and tax specialists, and offices in all three Baltic states. The firm received 24 “Band 1” rankings (the highest ranking possible for a lawyer) in the latest Chambers and Partners guides, reports produced by the leading research group in the legal industry. In the Legal 500 2026 guide, Sorainen ranked as a Tier 1 firm in 29 of 31 categories.
Despite an intentional slowdown in issuing licences, Lithuania is still Europe’s largest fintech hub, serving 40 million customers in the EU.
“Things are definitely still cooking here,” says Akvile.
Last chance: Get your tickets for Baltic Fintech Days May 13
Compliance is the biggest factor for Lithuanian fintechs to pay attention to
Perhaps the largest single wipeout of fintech entities in Lithuania occurred in the crypto sector, from over 800 registered companies in 2022 down to fewer than 10 licensed CASPs (Crypto Asset Service Providers) in April 2026. Lithuanian crypto companies were given a deadline to become licensed CASPs by 31 December 2025 as per the EU’s new MiCA (Markets in Crypto-Assets) Regulation. However, in 2025, the Bank of Lithuania received licence applications from only 55 companies. Additionally, 30% of these applications were submitted as late as Q4 2025, indicating that these companies either didn’t care about the compliance process, didn’t recognise how much work it involved, or failed to prepare for its costs.
“Compliance is expensive, and those costs kick in from the very beginning, and especially when the licence is obtained,” says Akvile. “That applies everywhere, not only in Lithuania. If companies don’t have the capital to cover these costs, they won’t make it anywhere.”
An increase in M&A interest
Lithuania already has more than 120 PIs and EMIs, and naturally, the regulatory shift evolved. The country is now looking for players who can bring in larger volumes.
“Lithuania is a well-established hub that’s extremely capable of supporting large players. The challenge is that many non-EU companies simply haven’t heard of us,” says Akvile.
Awareness of Lithuania as a fintech hub is weaker than expected outside of Europe, something the Lithuanian Ministry of Finance, Bank of Lithuania, and Invest Lithuania, the country’s primary investment promotion agency, are working to change.
Last chance: Get your tickets for Baltic Fintech Days May 13
Their efforts are paying dividends, as evidenced by two significant M&A deal announcements within four months of each other. Checkout.com, a massive global fintech, acquired Lithuanian fintech Blue EMI in January 2026. Santander-backed Ebury acquired Lithuanian fintech ArcaPay in September 2025.
“Five M&A deals in a year is significant, so the fact we’ve had two in such a short time shows that Lithuania is moving rapidly into the next level as a fintech hub,” says Akvile.
To make it in Lithuania 2.0, fintechs must (a) bring something special to the table, either through volume or extremely unique innovation, and (b) take regulatory compliance very seriously. That includes having the capital necessary to make that compliance possible.
