Crypto license in
Latvia 2025
Latvia offers a strategic gateway for cryptocurrency ventures seeking to operate within the European Union under a harmonised regulatory framework. With the introduction of the Markets in Crypto-Assets Regulation (MiCA), digital asset service providers in Latvia are now required to obtain a Crypto-Asset Service Provider (CASP) license from Latvijas Banka to legally operate.
Previously, crypto firms operated under the Virtual Asset Service Provider (VASP) registration regime without direct supervision from the central bank. MiCA has replaced this with a single EU-wide licensing system, providing regulatory clarity, stronger investor protection, and the ability to passport services across the European Economic Area (EEA).
Under MiCA, CASP-licensed companies must comply with strict AML/CTF obligations, governance standards, prudential safeguards, and risk management frameworks.
At Legalaes, we provide end-to-end legal and compliance support for obtaining a CASP license in Latvia — including company formation, policy drafting, business planning, capital arrangements, regulator liaison, and bank account opening — ensuring your business launches fully compliant with MiCA requirements.
Regulations for Crypto License in Latvia
From 1 January 2025, all crypto-asset businesses operating in Latvia must comply with the Markets in Crypto-Assets Regulation (MiCA), formally integrated into the country’s legal system. This EU regulation replaces the former Virtual Asset Service Provider (VASP) registration regime with a harmonised licensing framework for Crypto-Asset Service Providers (CASPs) across the European Economic Area.
Latvia’s competent authority for CASP licensing and supervision is Latvijas Banka, which now operates as both the central bank and the national financial regulator. All companies intending to offer crypto-asset services — such as exchange, custody, transfer, or issuance — must obtain formal authorisation before commencing operations.
Under the MiCA framework, licensing focuses on four core areas:
1. Organisational governance
1. Organisational governance
- Applicants must demonstrate a clear corporate structure, defined roles and responsibilities, documented governance arrangements, and effective internal controls.
2. Prudential safeguards
2. Prudential safeguards
- CASPs must maintain minimum share capital depending on the type of services provided (e.g., €50,000 for advisory services, up to €150,000 for custodial wallet providers and exchanges).
3. Operational resilience
3. Operational resilience
- Companies must implement robust ICT and cybersecurity measures, business continuity plans, and risk management policies in line with EU technical standards.
4. Consumer and market integrity
4. Consumer and market integrity
- Firms must have transparent pricing structures, clear terms of service, client asset segregation measures, and systems to prevent market abuse.
- Customer due diligence (CDD) and enhanced due diligence procedures.
- Ongoing transaction monitoring.
- Suspicious activity reporting processes.
- Internal staff training and whistleblowing channels.
To ensure readiness, applicants must prepare a comprehensive set of internal policies, including risk management procedures, outsourcing controls, custody rules, and IT security documentation. All materials must meet both Regulation (EU) 2023/1114 and related ESMA/EBA technical standards.
Existing VASP Framework (Pre-MiCA)
Previously, VASPs were registered with the Enterprise Register and notified the FIU. The framework focused on AML compliance without harmonised capital, governance, or consumer protection rules.
Existing VASPs must transition to a CASP license by 30 June 2025.
Types of Crypto Licenses in Latvia (CASP License Classes under MiCA)
With the full implementation of the EU’s Markets in Crypto-Assets Regulation (MiCA) on December 30, 2024, Latvia, through the Latvijas Banka (Bank of Latvia), now primarily issues Crypto-Asset Service Provider (CASP) licenses.
MiCA sets out a harmonized licensing structure across all EU countries, including Latvia. Crypto-Asset Service Providers (CASPs) are classified based on the nature and complexity of the services they offer:
| License type | Description of license |
|---|---|
| Class 1 – Entry-Level CASP (Minimum capital: EUR 50,000) |
|
| Class 2 – Intermediate CASP (Minimum capital: EUR 125,000) |
|
| Class 3 – Advanced CASP (Minimum capital: EUR 150,000) |
|
Legalaes assists both new ventures and existing VASPs in achieving full MiCA compliance in Latvia.
Overview of Requirements to Obtain a CASP License in Latvia
Main requirements:
- Provide desired company names for registration.
- Provide a copy of passport and proof of residential address for each shareholder and director.
- Provide a recent non-criminal record for shareholders and directors.
- Appoint at least one director (no Latvian residency requirement; EU/EEA nationality preferred).
- Company must have AML/KYC/CTF policies in place.
- Minimum registered share capital of €50,000–€150,000 depending on CASP category (deposited before license application).
- Completion and submission of the official CASP application form to Latvijas Banka.
Additional requirements:
- Develop full internal policies in accordance with Regulation (EU) 2023/1114 (MiCA), covering AML, risk management, cybersecurity, client asset safeguarding, governance, and more.
- Submit a business plan detailing operations, financial projections, and compliance arrangements.
- Conduct a preliminary meeting with Latvijas Banka (recommended).
- Perform Fit and Proper checks for all key management members.
- Ensure systems for client data storage, transaction monitoring, and suspicious activity reporting to the Latvian FIU.
- Maintain a three-line governance structure (operations, compliance/risk, internal audit).
- Corporate bank account in Latvia or another EU/EEA country is advisable but not mandatory at registration.
Estimated Time Frames
Business name verification
1-3 days
Company formation
up to 2 weeks
Documents review and analysis
1-3 weeks
Policies & compliance documents
3-4 weeks
Share capital increase (if needed)
2 weeks
CASP application submission
1 week
Regulator review & approval
2–6 months
Legal services for obtaining Crypto license in Latvia 2025
Basic Package
for startups entering the Latvian market
- Company registration & incorporation (SIA).
- Provision of legal address for 1 year.
- Standard AML/KYC policy drafting.
- CASP application preparation & submission to Latvijas Banka.
- Drafting corporate documents (AoA, internal resolutions).
- Representation before regulators & official communication handling.
- Legal guidance during application.
- Due diligence review.
Comprehensive package
for full-scale MiCA readiness
- Full set of internal policies (AML/CFT, risk, cybersecurity, governance).
- Tailored business plan aligned with chosen license class.
- MiCA compliance advisory & regulatory consultation.
- Fit & Proper documentation preparation for all key personnel.
- Capital increase process management.
- Coordination of pre-application meeting with Latvijas Banka.
- Support in appointing qualified compliance staff (local or EU).
- Legal opinion on operational readiness.
Ready-Made CASP Solution
for fast market entry
- Pre-registered Latvian SIA with clean record.
- Legal address for 1 year.
- Transfer of corporate documents & license.
- Assistance with ownership change filings.
- Capital top-up before CASP application (if required).
Jegor Kupratsevits
Head of Fintech
Requirements for CASP licensing in Latvia
To obtain a Crypto-Asset Service Provider (CASP) license in Latvia under the Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114), companies must meet strict legal, regulatory, and operational requirements set by Latvijas Banka and the Latvian Financial Intelligence Unit (FIU).
List of required documents
- Power Of Attorney: A notarised document authorising Legalaes to act on behalf of the applicant company to incorporate the entity in Latvia and submit the CASP license application.
- Application Form: Official application submitted to Latvijas Banka, detailing the company’s intended crypto services, operational scope, governance arrangements, and compliance measures.
- Memorandum and Articles of Association (MAA): Company charter prepared during incorporation, outlining corporate structure, shareholder rights, and governance provisions.
- Business Plan: A comprehensive document including the business model, projected revenue streams, operational workflows, risk management measures, and financial forecasts for at least three years.
- Key Personnel Documentation: Includes Fit and Proper self-declarations, CVs, proof of qualifications, professional experience, and clean criminal record certificates for directors, AML officers, and other key function holders.
Internal Policies and Procedures
- Governance & Control:
- Governance Arrangements: Defines management hierarchy, reporting lines, and decision-making processes.
- Internal Control Policy: Sets procedures for compliance monitoring and operational oversight.
- Conflict of Interest Policy: Identifies potential conflicts and mitigation strategies.
- Whistleblowing Policy: Provides a secure reporting channel for employees.
- Client Protection & Market Conduct:
- Client Information and Best Interest Policy: Ensures fair and transparent client communications.
- Client Complaint Handling Policy: Outlines dispute resolution steps and timelines.
- Non-Discriminatory Commercial Policy: Guarantees equal service access to all eligible clients.
- Order Execution Policy: Details execution quality and transparency for trades.
- Market Abuse Monitoring and Reporting Policy: Prevents and reports market manipulation or insider trading.
- AML/CTF & Prudential Safeguards:
- AML Policy: Describes customer due diligence and transaction monitoring in line with FIU standards.
- Proof of Meeting Prudential Safeguards Documentation Policy: Confirms capital adequacy and liquidity standards.
- Client’s Crypto-Assets and Funds Segregation Procedures Policy: Ensures separation of client assets from company funds.
- Subsidiary Relationship Information Documentation: Discloses group company connections.
- IT & Security:
- ICT Systems Security Policy: Specifies cybersecurity standards and controls.
- IT Systems and Security Arrangements Policy: Includes backup, resilience, and incident response plans.
- Trading Platform Operating Rules: Establishes operational protocols for exchanges or platforms.
- Business Continuity Policy: Details recovery strategies after operational disruptions.
- Custody & Asset Management:
- Custody Policy: Explains secure asset storage arrangements.
- Client Crypto-Asset Safeguarding Policy: Outlines theft and fraud prevention measures.
- Outsourcing & Third-Party Management:
- Outsourcing Management Policy: Defines vendor selection and monitoring procedures.
- Insurance Policy: Specifies coverage for operational and custody-related risks.
- Cross-Border & Compliance:
- Compliance Assessment Documentation: Summarises internal compliance audits.
- Cross-Border Service Provision Information Documentation: Lists intended EEA activities under MiCA passporting.
- Notification of Cross-Border Activities Documentation: Notifies regulators of EU-wide operations.
Business Premises Requirements
- Registered Legal Address – Mandatory for company incorporation and regulatory correspondence.
- Physical Office – Not legally required at licensing stage, but recommended for operational credibility and to meet banking expectations.
- Some Latvian banks and payment institutions may request a lease agreement for an operational address. Legalaes can assist in arranging virtual or physical offices as needed.
Share Capital & Government Fees
- Share Capital Thresholds (per CASP Class):
- Class 1 – €50,000
- Class 2 – €125,000
- Class 3 – €150,000
- Initial Company Incorporation Capital – Minimum €2,800 (must be increased before CASP application).
- Government Fees:
- Company registration – approx. €250–€300 (varies by filing method).
- CASP license application – set by Latvijas Banka (subject to annual updates).
Personnel Requirements
- Directors – Must meet MiCA’s professional competence and good repute standards; no Latvian residency required.
- AML Compliance Officer (MLRO) – Appointment required; local presence recommended for effective regulator interaction.
- Fit & Proper Standards – All key personnel must pass background checks, have relevant industry experience, and demonstrate financial integrity.
- Additional Staff – Depending on the complexity of services, the regulator may require dedicated risk managers, IT security officers, or other control function holders.
- Three Lines of Governance: Latvijas Banka generally expects a clear governance structure separating strategic decision-making, operational management, and internal oversight:
- First Line – Operational functions responsible for day-to-day business activities.
- Second Line – Compliance and risk management functions ensuring adherence to laws, regulations, and internal policies.
- Third Line – Independent audit or internal review providing objective assurance of governance and control effectiveness.
- Legalaes can provide local Personnel to ensure seamless regulatory compliance.
Detailed Time Frames to Obtain a CASP License in Latvia
The timeline for obtaining a CASP License in Latvia can vary depending on the complexity of the business model, the completeness of the application, and the responsiveness of Latvijas Banka during the review process. Below is an approximate breakdown of the key stages involved in securing CASP authorisation in Latvia under the MiCA framework:
Stage 1 – Business Planning & Documentation (2–4 weeks)
- Define service scope (exchange, custody, issuance, etc.).
- Prepare AML/CTF policy, governance structure, IT/cybersecurity framework, and all MiCA-mandated internal documentation.
- Collect background checks and qualifications for key personnel.
- Draft whitepaper if applicable.
Stage 2 – Company Registration (1–2 weeks)
- Register a Latvian SIA (LLC).
- Open a corporate bank account or EMI account.
- Deposit required share capital (€50,000–€150,000).
Stage 3 – Application Submission (1–2 days)
- Submit full application package to Latvijas Banka.
- Pay government fees.
Stage 4 – Regulatory Review (60–90 business days)
- Regulator reviews business model, governance, AML systems, and technical security.
- May request clarifications or further documentation.
Stage 5 – License Issuance (Immediate)
- Upon approval, license is issued and operations can begin.
Tips to reduce delays:
Work with experienced legal counsel, ensure all documents are fully compliant before submission, and maintain active communication with the regulator. Ensure all personal documents (IDs, CVs, certificates) are translated and notarised if required.
Keep communication lines open with Latvijas Banka during the review phase.
By staying organised and proactive, it’s possible to obtain a crypto licence in Latvia in under shortest available time, giving you fast access to the EU crypto market under MiCA’s harmonised framework.
Jegor Kupratsevits
Head of Fintech
Document Collection & Company Formation
The process begins with gathering identification documents, proof of address, and clean criminal records for shareholders, directors, and beneficial owners. We assist in selecting and reserving your company name in the Latvian Commercial Register. A Power of Attorney is prepared, enabling Legalaes to handle incorporation without the need for your physical presence. The company is registered as an SIA (Private Limited Company) and issued a registration certificate
Business Plan Development & Pre-Application Consultation
We prepare or review a comprehensive business plan tailored to MiCA requirements, detailing your services, governance, risk controls, and financial model. A pre-application meeting with Latvijas Banka is recommended to align expectations, confirm license class, and discuss prudential requirements. This proactive engagement reduces the risk of later rejections or prolonged review.
Internal Policies & Compliance Infrastructure
Our legal team drafts AML/CFT, KYC, cybersecurity, and operational policies that comply with MiCA (Regulation EU 2023/1114) and Latvian AML Law. The governance framework is established, including the appointment of a Compliance Officer and Money Laundering Reporting Officer (MLRO). The company’s IT and data protection systems are reviewed to ensure readiness for regulator scrutiny.
Share Capital Increase & Banking Setup
Before submitting your application, the company’s share capital is increased to the required threshold for the selected CASP class. Funds must be deposited into a corporate bank account or EMI account. We assist in selecting crypto-friendly banking partners and preparing compliance documentation to meet onboarding requirements.
CASP License Application Submission
During the review process, the MFSA may request additional documentation or clarifications. We maintain regular coThe CASP license application is compiled and submitted to Latvijas Banka. It includes corporate documents, internal policies, business plan, proof of capital, personnel credentials, and technical descriptions of your service infrastructure. All forms and attachments are prepared according to regulator guidelines, ensuring completeness from the outset.
Regulator Review & Clarifications
Latvijas Banka reviews your application for compliance with MiCA and national AML/CFT laws. The regulator may request clarifications, additional documents, or changes to internal procedures. Legalaes manages all correspondence and ensures timely, compliant responses.
License Approval & Post-Licensing Compliance
Upon approval, you receive your CASP license, enabling legal operation in Latvia and passporting across the EEA. We provide ongoing compliance support, including audit preparation, policy updates, and training for staff to ensure continuous regulatory alignment.
Advantages of the CASP License in Latvia
01
EU Passporting for Crypto Services
A CASP license in Latvia grants full passporting rights across all 30 European Economic Area (EEA) countries under MiCA. This means your crypto business can operate in multiple EU markets without the need for separate licenses in each jurisdiction, saving time and significantly reducing compliance costs.
02
Tax-Efficient Corporate Environment
Latvia’s corporate tax system is one of the most favourable in the EU for growing crypto businesses. Profits are taxed only when distributed, allowing companies to reinvest earnings tax-free, and there is no withholding tax on dividends paid to foreign shareholders.
03
Transparent and Supportive Regulator
The Latvijas Banka has a reputation for clear, structured communication with applicants. Pre-application consultations are available to clarify requirements, discuss your business model, and ensure your CASP license application in Latvia aligns with MiCA from the outset.
04
Competitive Operational Costs
Compared to Western Europe, Latvia offers lower labour, office, and operational expenses while still providing a highly skilled, multilingual workforce. This makes maintaining a CASP license in Latvia more cost-effective without compromising service quality.
05
Remote Incorporation & Licensing
The entire incorporation and licensing process can be completed remotely via a Power of Attorney. This allows international founders to secure their CASP license in Latvia without travelling, making it an attractive option for non-resident entrepreneurs.
06
Strong AML/CTF Compliance Reputation
Latvia is recognised for its strict adherence to AML/CTF standards, in line with EU directives and FATF recommendations. Holding a CASP license in Latvia strengthens your company’s credibility with international banking partners, investors, and institutional clients.
Links for Legislation Related to Crypto Business in Latvia
ESMA is the EU authority responsible for enhancing investor protection and promoting stable, orderly financial markets. Its MiCA section provides official guidance, Q&A documents, and interpretative notes for crypto-asset service providers operating under the new EU-wide framework.
The full text of the MiCA regulation, which harmonises rules for crypto-asset issuance, trading, custody, and related services across all EU Member States. Establishes prudential, governance, and investor protection requirements for CASP license holders.
The central bank of Latvia is the national competent authority for issuing and supervising CASP licenses under MiCA. This section outlines application procedures, supervisory responsibilities, and ongoing compliance obligations for crypto-asset service providers.
The FIU is responsible for enforcing Latvia’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) laws. CASPs must register with and report to the FIU, submit suspicious transaction reports, and comply with ongoing AML monitoring requirements.
The official state register of all legal entities in Latvia. Contains statutory data on company incorporation, shareholder and director details, and corporate structure, which must be kept up to date for CASP license compliance.
Public database providing real-time company data, including registration status, beneficial ownership, legal representatives, and historical corporate filings, essential for due diligence and regulatory disclosure.
FAQ About CASP License in Latvia
What’s the first step to obtain a crypto license in Latvia?
Establish a Latvian legal entity and submit a CASP license application to Latvijas Banka, including AML policy, business plan, and governance documentation.
Is a local Latvian director or AML officer required?
Not at licensing stage, but recommended for smoother regulator interaction. All must pass Fit & Proper checks.
Can foreign companies apply for CASP licensing in Latvia?
Yes, provided the company is established in Latvia and follows all local and EU rules.
What is the typical processing time?
3–6 months, depending on complexity and documentation quality.
What is the capital requirement?
€50,000–€150,000 based on license class.
Will my license be valid across Europe?
Yes, CASP authorization is fully passportable under MiCA.
Do I need a Latvian bank account?
Not mandatory but advisable.
What happens if I currently hold a VASP registration?
You must transition to a CASP license by 30 June 2025.
Is there a need to register directors and shareholders?
Yes, in the Latvian Commercial Register, with background checks.
Are compliance costs high?
No, Latvia is cost-competitive compared to other EU jurisdictions.
Does the regulator offer pre-application consultations?
Yes, to clarify scope and expectations.
What documentation is required?
Company documents, AML policies, governance structure, business model, shareholder disclosures, and Fit & Proper declarations.
Each of our projects receives unique and tailored solutions in accordance with the initial objectives and vision of the shareholders.
May also interest you
