Licentium

Fintech Licensing Hub

Latvia

Latvia regulates crypto under MiCA through its Law on Crypto-asset Services, with Latvijas Banka (the Bank of Latvia, the integrated supervisor) as competent authority; it took a 6-month transition that ended 30 June 2025 and has positioned itself as a crypto-friendly gateway, with free pre-licensing consultations, a low EUR 2,500 application fee, and its first CASP licences granted in December 2025. Payments and e-money run under the Law on Payment Services and Electronic Money (PSD2/EMD2), supervised by Latvijas Banka, with the Instant Payments Regulation and DORA in force and PSD3/PSR moving toward adoption. Gambling is regulated by the Lotteries and Gambling Supervisory Inspection (IAUI) under the Gambling and Lotteries Law — and Latvia is in the euro area and banking union, taxes individual crypto gains at 25.5% (with crypto-to-crypto deferred), and applies a 0% corporate tax on retained profits.

Available licences

Crypto-Asset Service Provider authorisation (Latvijas Banka under MiCAR and the Law on Crypto-asset Services)

Custody, operation of a trading platform, exchange of crypto-assets for funds or other crypto-assets, execution, placing, reception and transmission of orders, advice, portfolio management and transfer services require Latvijas Banka authorisation under Article 63 MiCAR; an authorisation passports across the EEA.

Asset-Referenced Token (ART) issuer authorisation (Latvijas Banka)

Public offering or admission to trading of a token referencing a basket of values, rights or currencies requires authorisation as an ART issuer under Title III MiCAR, with reserve, custody and disclosure requirements.

E-Money Token (EMT) issuer (credit institution or EMI; Latvijas Banka)

EMTs (including fiat-backed stablecoins) may be issued only by an authorised credit institution or e-money institution, with redemption at par, supervised by Latvijas Banka.

Article 60 MiCAR notification route (existing financial entities)

Credit institutions, investment firms, e-money and payment institutions and other authorised entities may provide specified crypto-asset services by notifying Latvijas Banka at least 40 working days before starting.

Payment Institution authorisation (Latvijas Banka)

A licence to provide payment services under the Law on Payment Services and Electronic Money, supervised by Latvijas Banka and passportable across the EEA; licensed institutions can access SEPA clearing directly through Latvijas Banka.

E-Money Institution authorisation (Latvijas Banka)

A licence to issue electronic money and provide related payment services, with EUR 350,000 minimum initial capital, supervised by Latvijas Banka.

Account Information and Payment Initiation Services (Latvijas Banka)

Open-banking providers — account information and payment initiation service providers — fall within the Law on Payment Services and Electronic Money, supervised by Latvijas Banka, with strong customer authentication.

Banking authorisation (Latvijas Banka and the ECB/SSM)

Deposit-taking and lending require a banking licence; in the banking union the European Central Bank grants the licence and directly supervises significant institutions, with Latvijas Banka supervising less-significant ones.

Investment firm authorisation (Latvijas Banka — MiFID II)

Investment services in financial instruments require authorisation under the Latvian MiFID II transposition, supervised by Latvijas Banka.

Interactive (online) gambling licence (IAUI)

A licence under the Gambling and Lotteries Law to offer interactive gambling — online casino games, betting and other games of chance — to players in Latvia via a ".lv" domain, subject to player-registration and identity-verification rules.

Games of chance, betting and lottery licences (IAUI)

Separate IAUI licences cover land-based casinos, slot halls, bingo and betting, and lotteries; gambling licences are granted for an indefinite period but must be re-confirmed annually, and lotteries are reserved to the state operator Latvijas Loto.

Detailed overview

Latvia at a glance

Latvia combines an integrated supervisor, a crypto-friendly licensing posture and an Estonian-style corporate tax. Crypto is supervised by Latvijas Banka under the Law on Crypto-asset Services; the 6-month transition ended 30 June 2025. Payments run under the Law on Payment Services and Electronic Money with Latvijas Banka as supervisor and the Instant Payments Regulation and DORA in force. Gambling runs under the Gambling and Lotteries Law, supervised by the IAUI. The euro is the currency, and Latvia sits inside the euro area and banking union.

Crypto regime under MiCA — Latvijas Banka-led, gateway positioning:

  • MiCA + national implementing law — Regulation (EU) 2023/1114 (MiCAR); the Law on Crypto-asset Services (in force 30 June 2024), designating Latvijas Banka
  • Competent authority — Latvijas Banka, acting as both central bank and integrated financial supervisor (it absorbed the former FCMC in 2023)
  • Grandfathering — closed. Latvia adopted a 6-month transition: VASPs operating before 30 December 2024 (AML-supervised by the State Revenue Service) could continue until 30 June 2025, and those applying to Latvijas Banka by that date could continue pending a decision; that window has expired
  • Gateway positioning — free pre-licensing consultations, an Innovation Hub and a blockchain/regulatory sandbox, a low EUR 2,500 application fee, a competitive supervision fee (up to 0.6% of gross revenue, minimum EUR 3,000), and direct SEPA access for licensed non-banks; the first CASP licences (BlockBen and Nexdesk) were granted in December 2025
  • Substance — a registered office in Latvia, at least two management board members (one a Latvian resident) and a local MLRO
  • AML/CFT — Latvian AML law applies, with the Financial Intelligence Service; the EU AML package (Regulation (EU) 2024/1624 / AMLR, with AMLA in Frankfurt) applies from 10 July 2027
  • TFR / DORA — the Travel Rule (Regulation (EU) 2023/1113) applies from 30 December 2024 and DORA from 17 January 2025
  • Tax — individual crypto gains are taxed as capital gains at 25.5% (from 2025, up from 20%); crypto-to-crypto exchanges are not a taxable event, with tax deferred until conversion to euro, and losses offset within the category. Corporate profits follow the Estonian-style model: 0% on retained or reinvested profits, with tax (effectively around 25%) only on distribution. Latvia has also introduced a temporary incentive (2025–2027) exempting non-residents from its special tax on disposals of publicly-traded crypto-assets to attract CASPs

Payments and e-money regime (Latvijas Banka-led):

  • PSD2 — Directive (EU) 2015/2366; transposed by the Law on Payment Services and Electronic Money, supervised by Latvijas Banka
  • Payment Institution licensing — initial capital EUR 20,000 (money remittance), EUR 50,000 (payment initiation) and EUR 125,000 (other payment services)
  • EMD2 / E-Money Institution — Directive 2009/110/EC; EUR 350,000 initial capital; stablecoin (EMT) issuers must be EMIs or credit institutions
  • Instant Payments Regulation (Regulation (EU) 2024/886) — euro instant payments: receiving applicable from 9 January 2025 and sending from 9 October 2025
  • DORA (Regulation (EU) 2022/2554) — applicable from 17 January 2025
  • PSD3 / PSR — Commission proposals of 28 June 2023; provisional political agreement reached 27 November 2025, with final compromise texts published 23 April 2026 and formal adoption expected during 2026; the package will repeal PSD2 and EMD2 and fold e-money institutions into payment institutions, with PSD3 transposed nationally and the PSR directly applicable after a phased timeline
  • Banking — in the banking union the ECB grants banking licences and directly supervises significant institutions, with Latvijas Banka supervising less-significant ones
  • Currency: euro (since 2014); no exchange controls

Gambling regime — IAUI-licensed:

  • Gambling and Lotteries Law and the Law On Lottery and Gambling Duty and Tax — the framework; interactive (online) gambling has been regulated since 2006
  • Regulator — the Lotteries and Gambling Supervisory Inspection (IAUI), under the Ministry of Finance; a restructuring that would integrate it into the State Revenue Service has been proposed
  • Licences — interactive (online) gambling, land-based casinos, slot halls, bingo, betting and lotteries; granted for an indefinite period but re-confirmed annually
  • Capital — a minimum share capital of EUR 1,400,000 for gambling operators
  • Tax — interactive (online) gambling is taxed on gross gaming revenue; lotteries at 10% of ticket sales; land-based gambling by fixed per-device and per-table fees; confirm current rates with the State Revenue Service
  • Localisation — licensed operators must use a ".lv" domain; offshore gambling is illegal and blocked; lotteries are reserved to Latvijas Loto
  • Minimum age — 18 (an increase to 21 has been proposed), with mandatory identity verification and player registration
  • No EU passport — gambling is licensed nationally

Last verified: July 2026. Reference rate: USD 1 = EUR 0.87 (EUR 1 = USD 1.15).

Latvia is a crypto-friendly, euro-area jurisdiction: crypto runs under MiCAR with Latvijas Banka offering free pre-licensing support and low fees, payments sit under the Law on Payment Services and Electronic Money, and gambling is an IAUI-licensed market with a high capital threshold and a ".lv" localisation rule.

Is there a crypto licence in Latvia?

Yes. Latvia applies MiCAR through its Law on Crypto-asset Services, with Latvijas Banka authorising and supervising CASPs and ART/EMT issuers. The 6-month transition ended 30 June 2025, so operating now requires a Latvijas Banka authorisation, a valid MiCA passport, or an Article 60 notification.

The legal foundation:

  • Regulation (EU) 2023/1114 (MiCAR) — the directly applicable EU framework for offerings, admission and crypto-asset services
  • Law on Crypto-asset Services — implements MiCAR in Latvian law and designates Latvijas Banka
  • Latvian AML law — AML/CFT obligations and FIU reporting
  • Regulation (EU) 2023/1113 — Travel Rule for crypto-asset transfers

Structure:

  • A Latvian entity with a registered office, local substance and fit-and-proper management (including a Latvian-resident board member and a local MLRO)
  • MiCAR own-funds floors by class — EUR 50,000 (Class 1), EUR 125,000 (Class 2), EUR 150,000 (Class 3) — with the higher of the floor or a fixed-overheads measure
  • AML systems, a white paper for in-scope offerings, custody and client-asset segregation, ICT and governance documentation, and a business plan — submitted to Latvijas Banka after the pre-licensing stage

Operational reality:

  • Latvia is deliberately accessible: free pre-licensing consultations, a low application fee, competitive supervision fees and an active Innovation Hub and sandbox make it one of the EU's more welcoming CASP venues
  • The Estonian-style corporate tax (0% on retained profits) and the non-resident crypto incentive add to the appeal, though substance and AML expectations are real
  • New activity should be structured through a Latvijas Banka authorisation, a valid passport or an Article 60 notification — not the closed transitional regime

Official CASP roadmap: Latvijas Banka offers free pre-licensing consultations, an Innovation Hub and a sandbox, publishes its CASP requirements and fees (EUR 2,500 application fee; up to 0.6% supervision fee), and runs a two-stage process (25-working-day completeness check plus 40-working-day assessment); the transition ended 30 June 2025 and the first licences were granted in December 2025.

Payments & E-money (Latvijas Banka — PSD2 / EMD2)

Best for payment, remittance, acquiring, wallet and open-banking operators that want a low-cost euro-area base with direct SEPA access for non-banks.

What it is: Authorisation as a payment institution or e-money institution under the Law on Payment Services and Electronic Money, supervised by Latvijas Banka and passportable across the EEA.

Who it suits: Money-remittance and transfer providers, acquirers, card and wallet issuers, payment-initiation and account-information providers, and e-money issuers (including stablecoin issuers, who must be EMIs or credit institutions).

Covers: The payment services under the Law on Payment Services and Electronic Money — incoming and outgoing transactions, transfers, card and instrument-based payments, money remittance, payment initiation and account information — plus issuance of electronic money.

Operational requirement: A Latvian entity; minimum initial capital by service type; ongoing own-funds and safeguarding of client funds; strong customer authentication; AML/CFT; DORA operational-resilience obligations; and fit-and-proper management.

Headline figures

  • Primary instruments: Law on Payment Services and Electronic Money (PSD2 / EMD2); Instant Payments Regulation (EU) 2024/886; DORA (Regulation (EU) 2022/2554)
  • Regulator: Latvijas Banka (authorisation and supervision)
  • Entry capital: payment institutions EUR 20,000 / 50,000 / 125,000 by service type; e-money institutions EUR 350,000
  • Instant payments: euro instant payments receiving from 9 January 2025 and sending from 9 October 2025; direct SEPA access for licensed non-banks
  • Reform pipeline: PSD3 / PSR — political agreement November 2025, compromise texts April 2026, adoption expected during 2026; EMD2 to be repealed and EMIs folded into payment institutions
  • Currency: euro (euro-area member); no exchange controls

Is there a gambling licence in Latvia?

Yes. The IAUI licenses interactive (online) gambling, land-based casinos, betting and lotteries under the Gambling and Lotteries Law, with a high capital threshold and a ".lv" localisation requirement.

The legal foundation:

  • Gambling and Lotteries Law and the Law On Lottery and Gambling Duty and Tax — the framework
  • IAUI — licensing and supervision under the Ministry of Finance
  • Latvijas Loto — the state lottery operator

Structure:

  • Interactive (online) gambling, land-based casinos, slot halls, bingo and betting are licensable; lotteries are reserved to Latvijas Loto
  • Licences are indefinite but re-confirmed annually, and require EUR 1,400,000 minimum share capital
  • Operators must use a ".lv" domain and verify player identity

Gambling — Interactive (online) gambling licence (IAUI)

Best for well-capitalised operators able to meet the EUR 1.4 million capital threshold and Latvia's localisation and player-protection rules.

What it is: An IAUI licence to offer interactive gambling — online casino, betting and games of chance — to players in Latvia.

Who it suits: Operators with the capital, reputation and demonstrable source of funds to meet IAUI requirements.

Covers: Interactive gambling; land-based activity requires separate IAUI licences.

Operational requirement: A ".lv" domain, player registration and identity verification, AML/CFT, responsible-gambling tools, and annual re-confirmation.

Headline figures

  • Primary instruments: Gambling and Lotteries Law; Law On Lottery and Gambling Duty and Tax
  • Regulator: Lotteries and Gambling Supervisory Inspection (IAUI)
  • Capital: EUR 1,400,000 minimum share capital
  • Tax: interactive gambling taxed on gross gaming revenue; lotteries at 10% of ticket sales; land-based by fixed per-device fees
  • Localisation: ".lv" domain required; offshore gambling illegal and blocked
  • Player protection: minimum age 18 (an increase to 21 proposed); identity verification and player registration

Costs and timelines at a glance

  • Crypto: MiCAR via the Law on Crypto-asset Services, Latvijas Banka for CASPs/ARTs/EMTs; own-funds floors EUR 50,000 / 125,000 / 150,000 by class; EUR 2,500 application fee; pre-licensing consultations plus a 40-working-day decision; transition closed 30 June 2025
  • Payments primary instruments: Law on Payment Services and Electronic Money (PSD2 / EMD2); Instant Payments Regulation (EU) 2024/886; DORA
  • Payments regulator: Latvijas Banka; banking licences via the ECB/SSM (banking-union member)
  • Reform pipeline: PSD3 / PSR — agreement November 2025, compromise texts April 2026, adoption expected during 2026
  • Gambling: IAUI licences; EUR 1.4 million minimum capital; online gambling taxed on GGR; ".lv" domain required
  • Tax: corporate income tax 0% on retained profits (around 25% on distribution); individual crypto gains taxed at 25.5% (crypto-to-crypto deferred)
  • Currency: euro (euro-area and banking-union member); no exchange controls
  • FX: USD 1 = EUR 0.87 (EUR 1 = USD 1.15)

Who Latvia suits and who it does not

Suitable for

  • Crypto exchanges, custodians and token issuers wanting an accessible, low-cost MiCAR CASP authorisation with free pre-licensing support and EEA passporting
  • Crypto firms attracted by the Estonian-style 0% tax on retained profits and the non-resident crypto incentive
  • Already-licensed banks, investment firms, payment and e-money institutions that can add crypto-asset services through the Article 60 notification route
  • Payment, remittance, acquiring, wallet and open-banking operators wanting a low-cost euro-area base with direct SEPA access
  • Well-capitalised online gambling operators able to meet the EUR 1.4 million capital threshold

Not suitable for

  • Firms wanting to rely on a former VASP registration — the transition closed on 30 June 2025
  • Operators expecting a large, mature CASP ecosystem — Latvia's authorised base is new and still building
  • Smaller gambling operators — the EUR 1.4 million capital threshold is a high bar, and a ".lv" domain is mandatory
  • Investors expecting the former 20% crypto-gains rate — the rate is now 25.5%
  • Payment or e-money firms expecting to avoid EU prudential, safeguarding, DORA or AML obligations

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