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Is crypto legal in Latvia? Rules & regulation (2026)

Crypto is regulated in Latvia.

Latvia operates a comprehensive, in-force crypto regulatory regime built on EU MiCA plus its dedicated 2024 national Law on Crypto-asset Services, with Latvijas Banka as the national competent authority. CASP authorisations have been issued since the regime applied on 30 December 2024 (first MiCA licence to BlockBen on 3 Dec 2025; multiple licences issued through 2026), and stablecoin issuer rules have applied since 30 June 2024. Tax treatment, AML, and the EU DAC8/CARF crypto-reporting regime (effective 1 January 2026, enforcement from 1 July 2026) complete the framework.

Last verified Official sources first · MethodologyCompare Latvia with other countries

Legal framework

EU Markets in Crypto-Assets Regulation (MiCA, Regulation (EU) 2023/1114) implemented nationally by Latvia's Law on Crypto-asset Services (Kriptoaktīvu pakalpojumu likums, adopted 13 July 2024); Latvijas Banka is the single competent authority for licensing and supervision.

Status by sub-area

  • Stablecoins

    In force

    MiCA Titles III (asset-referenced tokens) and IV (e-money tokens) have applied in Latvia since 30 June 2024, with Latvijas Banka authorising issuers and supervising reserve, redemption, governance and disclosure obligations. The national Law on Crypto-asset Services hooks these into Latvian law and sets supervisory fees.

  • Exchanges / VASP

    In force

    Exchanges and other crypto-asset service providers must hold a CASP authorisation from Latvijas Banka under MiCA Title V and the Law on Crypto-asset Services. The regime has applied from 30 December 2024; pre-existing VASPs operated under a transitional period that ended 30 December 2025.

  • Token Offerings

    In force

    Crypto-asset offerings (other than ARTs/EMTs) are regulated under MiCA Title II with tiered notification, offer-document and prospectus requirements depending on size. Token offerings that qualify as financial instruments fall under the Latvian Financial Instruments Market Law and the EU Prospectus Regulation, supervised by Latvijas Banka.

  • Custody

    In force

    Custody of crypto-assets on behalf of clients is a regulated CASP service under MiCA Article 75, requiring authorisation by Latvijas Banka and full compliance with MiCA's safeguarding, segregation and liability rules.

  • DeFi

    Partial

    There is no DeFi-specific framework in Latvia. MiCA Recital 22 exempts fully decentralised crypto-asset services provided without an intermediary from the regulation, but services with an identifiable issuer or front-end operator are pulled into the CASP regime, and DAC8/CARF reporting (effective 1 January 2026) captures certain DeFi platforms with transaction-facilitation services.

    Still pending: No DeFi-specific framework; services subject to CASP regime and DAC8/CARF reporting requirements

  • Tax

    In force

    The State Revenue Service (VID) classifies crypto-assets as capital assets: gains realised on conversion to fiat or goods are subject to the 25.5% capital gains tax, while crypto-to-crypto swaps are not taxable events. Reporting tightens further from 1 January 2026 with DAC8/CARF, transposed into Latvian law with fines up to €14,000 for non-compliance.

How to get a crypto license in Latvia

To provide crypto-asset services in Latvia you need a MiCA CASP authorisation (Crypto-Asset Service Provider), supervised by Latvijas Banka, under the EU Markets in Crypto-Assets Regulation (MiCA), Title V.

Authority
Latvijas Banka
License required
a MiCA CASP authorisation (Crypto-Asset Service Provider)
Framework / law
the EU Markets in Crypto-Assets Regulation (MiCA), Title V
Minimum capital
€50,000–€150,000 minimum, by service class (Class 1/2/3)
Timeline
about 40 working days of substantive review; 1–3 months for a well-prepared application
Cost
an application fee of roughly €5,000–€25,000, plus ongoing supervisory fees
Passporting
Yes: a single MiCA CASP licence passports across all 27 EU member states.

What a crypto license in Latvia covers

  • Custody and administration of crypto-assets for clients
  • Operating a trading platform for crypto-assets
  • Exchanging crypto-assets for funds, or for other crypto-assets
  • Executing orders for crypto-assets on behalf of clients
  • Reception and transmission of orders, and placing of crypto-assets
  • Advice and portfolio management on crypto-assets
  • Transfer services for crypto-assets on behalf of clients

Step by step: getting a crypto license in Latvia

  1. Incorporate a legal entity with a registered office in the member state, with at least one director resident in the EU.

  2. Build the application file: programme of operations, business plan, governance, AML/CFT, ICT resilience and client-asset segregation.

  3. Submit the application to the national competent authority.

  4. Completeness check: the authority has 25 working days to confirm the file is complete and request anything missing.

  5. Substantive assessment: the authority has 40 working days to grant or refuse the authorisation.

  6. Once authorised, notify the passport to the host member states you intend to serve, then begin operating across the EU.

Documents required in Latvia

  • Programme of operations describing each crypto-asset service you will provide
  • Business plan with three-year financial projections
  • Evidence of prudential safeguards (own funds or qualifying insurance)
  • Governance arrangements, organisational chart and internal-control description
  • AML/CFT policies and the appointment of a compliance officer
  • ICT security, business-continuity and DORA-aligned resilience policies
  • Custody and client-asset segregation arrangements
  • Complaints-handling procedure and conflict-of-interest policy
  • Fit-and-proper evidence for directors and qualifying shareholders (CVs, criminal-record certificates)

Ongoing obligations in Latvia

  • Maintain prudential safeguards and own funds at or above the class minimum
  • Keep client crypto-assets segregated from the firm's own assets
  • Run continuous AML/CFT monitoring, screening and suspicious-activity reporting
  • Keep marketing communications fair, clear and not misleading
  • Operate complaints handling and manage conflicts of interest
  • Meet ICT resilience and incident-reporting duties under DORA
  • File periodic reports to the national competent authority

Key points: crypto & digital assets in Latvia

  1. MiCA national implementation

    Latvia's Law on Crypto-asset Services entered into force on 30 June 2024 and applies to CASPs from 30 December 2024, complementing MiCA and designating Latvijas Banka as the supervisory authority and the licensor for crypto-asset issuers and service providers.

    bank.lv cms.law

  2. Competent authority, Latvijas Banka

    Latvijas Banka (the central bank, which absorbed the FCMC in 2023) authorises and supervises CASPs and crypto-asset issuers, runs free pre-licensing consultations and an Innovation Hub, with a 25-day completeness check and 40-day substantive review process.

    bank.lv fintechlatvia.eu

  3. Licences issued under MiCA

    First MiCA CASP licences in Latvia were issued by Latvijas Banka on 3 December 2025 (BlockBen SIA; Nexdesk); Paybis received a landmark dual MiCA/PSD2 authorisation in May 2026, and a fourth crypto licence was issued in May 2026.

    bank.lv eng.lsm.lv em.gov.lv

  4. Tax treatment

    The State Revenue Service (VID) treats crypto-assets as capital assets: gains on conversion to fiat or other goods are taxed at the 25.5% capital gains rate; crypto-to-crypto swaps are not a taxable event; quarterly declarations are required if quarterly income exceeds €1,000.

    njordlaw.com news.bloombergtax.com

  5. DAC8 / CARF reporting

    Latvia transposed DAC8 and the OECD CARF via Bill 24-TA-3148 (approved June 2025); reporting CASPs must file annual reports to VID on prior-year crypto transactions, with the regime live on 1 January 2026 and full compliance required by 1 July 2026; fines up to €14,000 for non-compliance.

    kpmg.com taxation-customs.ec.europa.eu

  6. Capital and offering thresholds

    CASP minimum own-funds requirements follow MiCA's three classes (€50,000 / €125,000 / €150,000). Crypto-asset offerings: below €1m no notification; €1-8m requires an offer document; above €8m requires a prospectus approved by Latvijas Banka.

    bank.lv fintechlatvia.eu

Crypto license in Latvia: FAQ

Do you need a license to run a crypto business in Latvia?

Yes. To provide crypto-asset services in Latvia you need a MiCA CASP authorisation (Crypto-Asset Service Provider), supervised by Latvijas Banka, under the EU Markets in Crypto-Assets Regulation (MiCA), Title V.

Which authority issues crypto licenses in Latvia?

Latvijas Banka.

How much does a crypto license cost in Latvia?

An application fee of roughly €5,000–€25,000, plus ongoing supervisory fees.

How long does it take to get a crypto license in Latvia?

Typically about 40 working days of substantive review; 1–3 months for a well-prepared application.

What documents do you need for a crypto license in Latvia?

The application file centres on programme of operations describing each crypto-asset service you will provide; business plan with three-year financial projections; evidence of prudential safeguards (own funds or qualifying insurance); governance arrangements, organisational chart and internal-control description; plus fit-and-proper evidence for directors and qualifying shareholders.

What is the application process for a crypto license in Latvia?

Incorporate a legal entity with a registered office in the member state, with at least one director resident in the EU. Build the application file: programme of operations, business plan, governance, AML/CFT, ICT resilience and client-asset segregation. The authority then assesses the file and, once authorised, you can begin operating.

Does a Latvia crypto license work in other EU/EEA countries?

Yes: a single MiCA CASP licence passports across all 27 EU member states.

Timeline of decisions

  1. Decision
    Latvia eyes crypto tax payments in 2027 as parliament overhauls crypto taxation

    CoinDesk Policy

Sources

  1. bank.lv/en/operational-areas/licensing/crypto-asset
  2. bank.lv/en/operational-areas/licensing/crypto-asset/crypto-asset-service-prov
  3. bank.lv/en/news-and-events/news-and-articles/news/17411-latvijas-banka-issues
  4. em.gov.lv/en/article/latvia-establishing-itself-crypto-asset-market-first-licen
  5. eng.lsm.lv/article/economy/banks/25.05.2026-latvian-central-bank-issues-fourth-c
  6. esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets
  7. cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/latvia
  8. fintechlatvia.eu/crypto-asset/mica-regulation/
  9. fintechlatvia.eu/crypto-asset/requirements-for-crypto-asset-issuers/
  10. kpmg.com/us/en/taxnewsflash/news/2025/12/tnf-latvia-partial-implementation-of-
  11. taxation-customs.ec.europa.eu/taxation/tax-transparency-cooperation/administrative-co-operation-and
  12. njordlaw.com/cryptocurrency-taxes-latvia-updated-10012025
  13. news.bloombergtax.com/daily-tax-report-international/latvia-tax-agency-updates-methodologic
  14. fintechlatvia.eu/news/discover-latvia-a-destination-for-crypto-asset-service-providers

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 12 Jun 2026. Methodology & how to cite · State of Technology Regulation 2026