The Regulation on Markets in Crypto-Assets (MiCA), establishing a single EU-level legal framework for this industry, applies EU-wide as of 30 December 2024.
Crypto-asset service providers can begin their journey toward securing the licence by taking advantage of free pre-licensing consultations offered by Latvijas Banka. The pre-licensing process offers individual consultations with Latvijas Banka experts, ensuring guidance on the viability of applications, regulatory compliance, and document readiness. Latvijas Banka emphasises accessibility and responsiveness, ensuring prompt, human-centered communication with an average response time of 48 hours.
The pre-licensing process is aimed at reducing a service's time-to-market, thus reducing service down-time after the regulation is enacted. Similar pre-licensing consultations in other verticals offered by Latvijas Banka have made it possible for companies to reduce their time to obtain a license down to 3 months.
"Latvia hosts a regulatory environment that is open to innovation, aligned with EU standards, and committed to fostering a fintech-friendly business environment. Latvijas Banka has created a framework that balances flexibility with responsibility. Our efforts focus on streamlining licensing processes and reducing barriers to entry. Our dedicated team offers personalised, rapid support prioritising direct, professional feedback within hours rather than months-long waits."
Santa Purgaile, Deputy Governor of Latvijas Banka.
Approved crypto-asset service providers will pay a supervision fee of only 0.6%, with a minimum of 3000 EUR annually. A licence from Latvijas Banka provides the opportunity to scale fast across the EU market and passport the services cross-border.
"A licence issued by Latvijas Banka is a mark of quality. In Latvia, we have achieved excellence in compliance and are well-equipped to support companies facing the challenge of navigating the comprehensive and complex requirements of the MiCA Regulation. Consultations are easy to arrange and free of charge, whether scheduled online or on-site. Moreover, after acquiring a licence in Latvia, the supervision costs for crypto companies remain competitive."
Santa Purgaile, Deputy Governor of Latvijas Banka.
In addition to an available and responsive team of expert consultants, an EU-wide licence, and a competitive 0.6% supervision fee, Latvia offers a variety of benefits to make fintech companies' lives easier. Those include:
- Regulatory Sandbox– an environment provided by Latvijas Banka where innovative services can be tested in relation to existing regulations, to verify compliance and viability, encouraging the development of new financial services products.
- Innovation Hub– fintechs are able to apply for free advice from Latvijas Banka experts in areas related to their industry's legislation, regulation, licensing, IT security, AML, and more.
- Startup support – Latvia's Startup Law offers a variety of support mechanisms, including the Startup Visa for foreign founders, lowered social tax rates, waived income tax, and 45% salary co-financing for highly qualified employees.
More information on the pre-application process
Latvijas Banka has also developed guides for obtaining authorisation to provide crypto-asset services and issue tokens. Companies considering applying are invited to contact Latvijas Banka experts through the Innovation Hub application for a free consultation.