Crypto License in Latvia: MiCA CASP Authorization
A MiCA license in Latvia allows a firm to provide authorized crypto-asset services across the EU and EEA under a single CASP authorization. Latvia combines the lowest application fee in the EU, 0% tax on retained profits and a regulatory process that includes free pre-licensing consultations. ECOVIS supports crypto businesses with the full CASP licensing process in Latvia, from initial structuring to authorization and ongoing compliance. Contact us for a free initial consultation.
Why Choose Latvia for a MiCA License?
Latvia combines unbeatable entry costs with an established financial-sector infrastructure. Key advantages include:
Lowest entry cost in the EU. The application fee is EUR 2,500. Ongoing supervision costs 0.6% of annual gross income from crypto services, with a floor of EUR 3,000 and a ceiling of EUR 300,000. There is no charge for the consultation stage, the assessment, or the decision itself.
The regulator works with you before you file. Latvijas Banka runs roughly 100 free consultations a year, going through the business model, flagging gaps, and telling the applicant whether the application stands a chance. Problems that would otherwise surface mid-review get solved before the clock starts.
Tax rewards reinvestment. Profit left in the business is taxed at 0%. The 20% corporate income tax applies only when profit is paid out.
English-language communication. Documents can be submitted to Latvijas Banka in English during the pre-licensing stage.
Fiat payments alongside crypto. Firms that also need to handle regulated fiat payment flows can pursue a payment institution license alongside a crypto license. This can provide access to SEPA services and payee name verification.
Strong anti-money-laundering record. MONEYVAL’s 6th Round Mutual Evaluation Report gave Latvia exceptionally high ratings, with compliance on 39 of the 40 FATF recommendations.
Fintech growth is national policy. Latvia’s fintech strategy sets a target of increasing the number of fintech companies by a third.
Who Needs a CASP License in Latvia?
MiCA separates two things. Handling crypto on behalf of clients is a service, and it needs a CASP license. Creating and offering your own token is issuance, and it follows different rules.
Ten services trigger the license requirement: custody and administration, running a trading platform, exchanging crypto for funds, exchanging crypto for other crypto, executing orders, placing, receiving and transmitting orders, advice, portfolio management, and transfers. Providing any one of them professionally means you need authorization.
Token issuance depends on what the token is. Asset-referenced tokens (ARTs) need authorization from Latvijas Banka, with an exemption for small offerings under EUR 5 million in average outstanding value and for offerings restricted to qualified investors. The white paper is required regardless. Electronic money tokens (EMTs) are limited to credit institutions and e-money institutions, and their white paper is notified rather than approved. Everything else, utility tokens included, needs no issuer authorization, though a white paper notification usually applies before a public offer or listing.
Fees apply on the issuance side too. ART authorization costs EUR 2,500, or EUR 1,250 per additional token for firms already supervised by Latvijas Banka, capped at EUR 5,000 a year. EMT issuers pay nothing extra, since they already hold a license and pay supervision fees under it.
How to Get a MiCA License in Latvia
The pre-licensing stage comes first and costs nothing. The company does not have to exist yet. You bring what you have on shareholders, capital origin, and how each service will operate. Latvijas Banka responds within 30 days with guidance on the rules, the documents, and whether to proceed.
The formal application follows under Article 62 of MiCA. Latvijas Banka checks completeness within 25 working days. If something is missing, it sends a letter setting out the gaps and a deadline. Once the file is complete, the substantive assessment runs 40 working days before a decision. That period stretches if the file leaves questions open.
Latvijas Banka puts the average at around three months, which is among the fastest in the EU.
CASP Authorization Requirements in Latvia
A CASP applying for authorization in Latvia must meet requirements concerning its local structure, management, ownership, financial resources and key personnel.
Registered office and local presence. The applicant must establish a Latvian company with a physical office in Latvia. Virtual offices are not accepted. Neither the company nor the office is needed during the consultation stage.
Management body. At least one member of the board should be locally based.
Ownership eligibility. Shareholders, beneficial owners and board members must meet the applicable eligibility requirements, including the restrictions concerning Russian and Belarusian nationals and residents unless they also hold EU, EEA or Swiss nationality or an eligible residence permit.
Qualifying shareholders. A direct or indirect holding of 10% or more of the share capital or voting rights constitutes a qualifying holding. The holding must be notified to Latvijas Banka in advance and assessed before acquisition. The assessment covers reputation, competence, financial standing and the source of funds.
Own funds. EUR 50,000 to 150,000, set by the services applied for. Advice, portfolio management, order reception and transmission, execution, placing and transfers sit at EUR 50,000. Custody and both exchange services sit at EUR 125,000. Running a trading platform sits at EUR 150,000. Firms combining classes meet the highest one. The money has to be paid in before the license issues, and crypto held on the balance sheet does not count. After authorization, own funds stay at the higher of that floor or a quarter of the previous year’s fixed overheads.
Key function holders. The application must identify the individuals responsible for compliance and AML functions and provide information on their qualifications. Hiring the full team before authorization is not expected.
Documents for a Crypto License in Latvia
Latvijas Banka asks for 20 categories of information, covering four areas.
The company and its people: application form, articles of association, and a three-year programme of operations covering the business model, planned crypto-asset services, target markets, resources, revenue projections and financial forecasts. For management and qualifying shareholders: CVs, education documents, criminal record statements and assessments of reputation.
Controls: governance arrangements, internal control and risk management, the AML and sanctions framework with a risk assessment, business continuity planning, complaints handling, and outsourcing policies where relevant.
Technology and client assets: ICT systems and security documentation with risk assessments, and how client crypto and funds are kept apart from the firm’s own.
Service-specific papers on top: custody arrangements, trading platform rules and market abuse detection, pricing methodology for exchange, execution policy, evidence of expertise for advice and portfolio management.
A fuller breakdown is in our Latvian MiCA licensing guide.
Passporting a Latvian MiCA License Across the EU
Authorization in Latvia carries into all 30 EEA countries. Latvijas Banka informs the regulators in the countries you enter, and their approval is not part of the process. One application, one supervisor, EU-wide reach.
A CASP license covers crypto services only. Firms moving fiat as well apply for a payment institution license alongside it, at the same regulator and in the same process. That license brings SEPA access through Latvijas Banka and payee name verification.
MiCA Licensing Support in Latvia
We handle CASP authorization from strategy through to life after the license, including applications that combine a MiCA license with a payment or e-money institution license. More than 40 fintech licensing projects have gone through our team end to end.
- Readiness review and gap analysis before anything is filed
- The full CASP application, prepared and submitted
- Token classification, legal opinions, white paper drafting and notification
- AML and CTF frameworks, internal controls, DORA-aligned ICT systems
- Latvian company setup, with guidance on office and board arrangements
- Compliance, reporting and advisory after the license is granted
Get in touch for a free introductory briefing.
Recent MiCA Licensing & CASP Authorization Work
Trek Technologies SIA (Backpack EU)
Advised Backpack EU on MiCA CASP authorization from Latvijas Banka across 30 EEA states, covering custody and administration, exchange for funds and other crypto-assets, order execution, and transfer services. The work included multi-jurisdictional group structuring (LV, LT, CY, UAE, BVI) and MiCA/PSD2 boundary analysis.
Trek Labs, UAB (Backpack Token)
Advised on a MiCA-compliant crypto-asset white paper notified to the Bank of Lithuania for the Backpack token. The work covered token classification, structuring of the offering, white paper preparation, and regulatory engagement throughout the notification process.
Match Networks Ltd.
Advised Match Networks on securing one of the EU’s first MiCA crypto-asset white paper approvals from the Central Bank of Ireland, including jurisdictional planning, documentation preparation, and regulatory coordination, enabling a regulated EU-wide token offering.
Proof Space Pte. Ltd.
Advised on one of the Bank of Lithuania’s first MiCA crypto-asset white paper notifications, covering the preparation and filing of the white paper as well as regulatory engagement for the token’s EU offering and admission to trading.
Aethir Network Foundation Company
Advised Aethir Network Foundation Company on obtaining MiCA white paper approval from the Central Bank of Ireland for a technically complex token structure. The white paper was approved without any requested amendments, enabling an EU-wide token offering and distribution.
MiCA Licensing & CASP Authorization in Latvia FAQ
How much does a MiCA license cost in Latvia?
The state application fee is EUR 2,500, the lowest in the EU. Pre-licensing consultations with Latvijas Banka are free of charge. Ongoing annual supervision fees are 0.6% of annual gross income, with a minimum of EUR 3,000 and a maximum of EUR 300,000 per year.
How long does it take to obtain a CASP authorization in Latvia?
The average review takes around three months from a complete filing. Before that, the pre-licensing consultation runs on its own timeline, with Latvijas Banka responding within 30 days. The formal review is a 25-working-day completeness check followed by a 40-working-day substantive assessment.
Do I need a local office in Latvia?
Yes. A physical office in Latvia is required, and virtual offices are not permitted. Having at least one locally based board member is recommended.
