The central bank said:

"Financial innovations often emerge and grow faster than the regulatory framework adapts, so it is important to find an appropriate solution, one that does not slow down progress and is proportionate to the risks involved. For this reason, it is important to ensure a technology-neutral approach at the EU level, regardless of the underlying technology; if it has the characteristics of a financial instrument, it should be subject to appropriate regulation and supervision. 

This is particularly true for virtual assets. In the opinion of the Bank of Lithuania, a clear definition is needed at the EU level to regulate and treat digital securities or financial instruments in the same way. This would strengthen the EU single market and, at the same time, this “economy of scale” would lead to more favourable financing for small and medium-sized enterprises through innovative financing methods such as initial public offering (IPO) or security token offering (STO)."

The bank proposed:

• to harmonise and digitise the standards of data provided for supervisory purposes at the EU level, using smart regulation technologies (e.g. RegTech, SupTech solutions);
• creating a register of trusted providers of RegTech services and supervision of these services should be considered. 
• achieving a consensus on the concept of the regulatory sandbox and on rules for assessing innovations being tested; and
• to promote co-operation between the financial sector and supervisory authorities in other areas (e.g. law enforcement, consumer rights protection).

The bank also said that it supported the proposal to create a level playing field for banking and non-banking sector participants (e-money institutions, payment institutions) to access the payment infrastructure and to ensure the universal availability of instant payments, gradually seeking to make them a mandatory service.