Latvia’s “Law on Crypto‑Asset Services”
Latvia’s dedicated statute for crypto‑assets establishes a domestic framework that complements the EU Markets in Crypto‑Assets (MiCA) Regulation (EU 2023/1114). It applies to any natural or legal person that issues, offers to the public, admits to trading, or provides services in relation to crypto‑assets on Latvian territory.
Latvijas Banka (the Bank of Latvia) is the sole competent authority. It may set detailed rules, request reports or data, and align local requirements with guidance from the European Banking Authority and the European Securities and Markets Authority. It also defines fit‑and‑proper criteria for individuals providing crypto‑asset advice on behalf of service providers.
Start‑ups must seek the Bank’s authorisation before:
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launching any crypto‑asset service (exchange, custody, execution, portfolio management, advice, etc.);
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offering or admitting to trading an asset‑referenced token;
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issuing additional asset‑referenced tokens if already licensed as a financial‑market participant.
Entities already supervised by the Bank for other financial activities must still obtain the specific crypto licence for each new token or service.
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Prepare the dossier: compile the information, policies and governance evidence that the Bank will specify in its secondary regulations.
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File a formal application with the Bank and pay the non‑refundable review fee:
* €2 500 for first‑time applicants seeking a crypto‑asset‑service licence;
* €2 500 for first offers of an asset‑referenced token by non‑regulated issuers;
* €1 250 per additional token where the applicant is already a supervised financial‑market participant (annual cap €5 000). -
Regulatory review: the Bank assesses compliance with MiCA requirements and any national rules it has issued.
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Decision & registration: successful applicants are entered on the public register and may commence operations.
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Annual supervisory levy: once authorised, pay up to 0.6 % of gross crypto‑service revenue each year (minimum €3 000); comparable percentage applies to other financial‑market participants that add crypto services.
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Prompt disclosure of any material change that could affect viability or diverge from the original application.
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Regulatory reporting on operations, risk, and client asset protection as required by the Bank.
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Safeguarding of client funds: permission to open a dedicated account at a credit institution or Latvijas Banka for fiat received in the course of crypto‑asset services.
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Competence of staff: firms offering advice must ensure front‑line personnel demonstrate knowledge and skills meeting criteria set by the Bank.
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Plan early: gather MiCA‑aligned policies (governance, capital, white paper, safeguarding, complaint handling, outsourcing, winding‑down) in anticipation of the Bank’s detailed filing template.
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Budget for dual costs: upfront filing fee and ongoing supervisory levy linked to revenue.
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Ensure expertise: document staff qualifications, especially for advisory functions.
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Maintain agile reporting frameworks to accommodate bespoke data calls from the Bank.
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Monitor EU‑level guidance: as the Bank will transpose EBA/ESMA decisions promptly.
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Behind Licentium
Our Edge
Licentium is a specialized platform that connects crypto-asset issuers and service providers with an international network of lawyers, regulatory consultants, and former supervisors. Projects can map applicable rules in key jurisdictions through a single interface, obtain jurisdiction-specific launch advice, arrange the drafting of white papers and licensing applications, and schedule ongoing compliance health-checks. The platform’s curated expert pool spans financial services, data protection, and corporate law, enabling founders to address cross-border requirements—from MiCA in the EU to securities, AML, and consumer-protection regimes elsewhere—within coherent project timelines and budgets.
