On 2 January 2025, Latvia’s central bank, Latvijas Banka, officially began accepting applications for the EU Markets in Crypto-Assets (MiCA) licence. This development follows the implementation of the MiCA Regulation on 30 December 2024, establishing a unified legal framework for the crypto-asset industry across the European Union.
Latvijas Banka is offering free pre-licensing consultations to crypto-asset service providers, providing expert guidance on application viability, regulatory compliance, and documentation readiness. These consultations aim to minimise service downtime and accelerate the path to market.
Crypto-asset service providers seeking an EU-wide licence can benefit from Latvijas Banka’s framework, with a competitive supervision fee structure. Approved entities will pay a 0.6% supervision fee, with a minimum of €3,000 annually, and gain the ability to passport services across EU member states.
Latvia also provides a supportive ecosystem for fintech companies, including regulatory sandboxes for testing compliance, an Innovation Hub offering free expert advice, and the Startup Law, which facilitates tax benefits, visa programmes, and salary co-financing for qualified employees.
The MiCA Regulation took effect EU-wide on 30 December 2024, and Latvijas Banka began accepting applications just three days later, on 2 January 2025. With pre-licensing consultations expected to reduce licensing time to as little as three months, companies could begin operations under MiCA regulation by mid-2025. The rapid response times of Latvijas Banka, averaging 48 hours for consultations, enhances the efficiency of the licensing process.
Santa Purgaile, Deputy Governor of Latvijas Banka, stated: “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.” He added: “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.”
