Discover Latvia: a destination for crypto-asset service providers seeking licences under MiCA

Why choose Latvijas Banka?

Latvia stands out with one of the most competitive supervision fee structures for CASPs, capped at just 0.6% of gross revenues. This affordability makes it an attractive hub for both new and established CASPs.

The licensing process in Latvia is smooth and efficient, with a dedicated team of experts at Latvijas Banka who manage licensing, AML, and supervision processes, providing support and consultations to crypto companies. Additionally, Latvijas Banka offers a free pre-licensing process to assist entrepreneurs in preparing documentation and processes, ensuring a swift and painless official licensing experience. The pre-licensing consultations are free of charge, and the meetings with a dedicated expert team at Latvijas Banka are easy to arrange.

Moreover, Latvijas Banka's Innovation Hub and Regulatory Sandbox offer professional advice and allow companies to test services for regulatory compliance.

Guides and useful information

Latvijas Banka has created comprehensive guides on obtaining authorisation to provide crypto-asset services and issue tokens. These guides provide a clear overview of how to prepare and submit an application to Latvijas Banka, which documents are required, and the timeline for the application's assessment. The guides are available on Latvijas Banka's website.

Additionally, Latvijas Banka has prepared an overview of the classification of crypto-assets within the MiCA framework, specifying the crypto-assets MiCA applies to and outlining the exceptions where other regulations may apply.

SEPA payment framework access

Great news for CASPs seeking access to payment systems! The Electronic Clearing System (EKS), managed by Latvijas Banka, will soon provide access to the SEPA payment framework for payment institutions and e-money institutions. This system offers equal opportunities for payment service providers on a level playing field. This integration into the broader European payment network significantly enhances operational efficiency and connectivity.

Advantages and support in Latvia

There are plenty of benefits for innovative and growing companies in Latvia.

The country provides a 0% tax rate on reinvested profits, offering a significant financial advantage that allows more resources to be directed towards growth and innovation.

Additionally, state aid is available to fast-growing start-ups, including mechanisms to reduce labour costs and co-financing options for highly qualified workers.

Latvia also has a beneficial share options system, enabling employees to acquire company shares at nominal prices or for free, thus motivating the team and promoting growth.

With a large pool of qualified AML specialists available in Latvia, companies have an excellent opportunity to hire top professionals who can ensure that operations adhere to the highest compliance standards.

Seamless operations across Europe

A CASP licence from Latvia enables your business to operate across Europe, thanks to the MiCA passporting feature. A licence issued by Latvijas Banka authorises a financial market participant to work and provide services in every Member State of the European Union.

It is worth noting the accessibility. Riga is easy to reach by plane from various destinations. And public services are provided remotely, for example, online services are provided by Latvijas Banka and the Enterprise Register.

With its favourable licensing conditions, expert guidance, and supportive infrastructure, Latvia is ready to support and facilitate the growth of your crypto business.

We look forward to welcoming you at Latvijas Banka! Apply for a consultation by filling in the application form on Latvijas Banka's website.

To learn more about obtaining a licence in Latvia, save the date for the upcoming webinar hosted by Latvijas Banka on 30 September. Don't miss this opportunity to explore how Latvia can be the perfect base for your crypto operations in Europe. Please register for the webinar by 27 September by completing the application form. The webinar will be conducted in English.