Regulated United Europe OÜ
Registration number: 14153440
Anno: 16.11.2016
Phone: +372 56 966 260
Email: info@rue.ee
Address: Laeva 2, Tallinn, 10111, Estonia
Crypto License in Latvia
Latvia issues crypto-asset authorisation under MiCA.
In 2026, CASPs are supervised by Latvijas Banka.
Scope, capital and governance drive timing and cost.
Regulator
LB
Timeframe
From 6 months
Cost
21 500 EUR
Capital
From 50 000 EUR
MiCA capital depends on service scope and prudential requirements
Latvia CASP authorisation in 2026
A crypto license in Latvia in 2026 means authorisation as a crypto-asset service provider (CASP) under Regulation (EU) 2023/1114 (MiCA), with national procedure and supervision handled by Latvijas Banka. This is not the old light-touch registration model seen in some EU markets before MiCA. The regulator will assess your exact service perimeter, governance, AML framework, safeguarding model, outsourcing map, financial projections and the fitness of shareholders and managers.
For founders, the practical questions are straightforward: can the business model be licensed, how much capital is needed, how much local substance is expected, and how long the file will take. In Latvia, the answer depends less on marketing labels such as “exchange” or “wallet” and more on the underlying regulated activities: custody, exchange, transfer, execution, advice, portfolio management, operation of a trading platform and related services.
At RUE, we structure Latvian CASP projects around the same sequence used by regulators and serious investors: scope mapping, company setup, licensing file architecture, AML/Travel Rule design, prudential planning and post-licence operating readiness.
RUE supports Latvian CASP projects from scope analysis to full application assembly. We align the legal file with MiCA, Latvian AML requirements, Travel Rule implementation, governance design, bank and payment onboarding logic, and post-authorisation operating controls.
Direct MiCA framework
The core rulebook is EU-level MiCA, not an isolated local regime. That improves legal comparability across the European Union and helps with cross-border planning.
Competent authority is clear
Latvijas Banka is the key authority for CASP authorisation and supervision in Latvia. This removes the outdated confusion with historical institutional structures.
Suitable for structured business models
Latvia fits founders who can document governance, source of funds, AML controls, outsourcing oversight and financial sustainability. It is less suitable for undercapitalised launch-only projects.
EU servicing potential
A Latvian CASP can build an EU expansion path under MiCA notification mechanics, provided the authorised services, target markets and operating model are properly mapped.
Crypto License in Latvia
21,500 EUR
Package includes (8)
- Preparation of necessary documents for registration of a new company in Latvia
- Translation of a certificate of no criminal record through a sworn translator
- Payment of state fees related to company registration
- Payment of notary fees related to company registration
- Preparation of compliance documents for MiCA application
- Preparation of a business plan
- Submission of the necessary documents to LB
- Recruitment of local MLRO/Compliance officer
Timeframe: From 6 months
Additional Services
MiCA structuring & jurisdiction selection advisory within the EU
from 2,900 EUR
Legal qualification of tokens (utility vs EMT vs ART vs financial instrument under MiFID II)
from 3,900 EUR
Pre-application gap analysis and readiness assessment
from 4,900 EUR
Regulatory risk memo for business model validation
from 2,900 EUR
Cross-border structuring for non-EU founders entering the EU market
from 5,900 EUR
Annual compliance reviews and internal audits
from 4,900 EUR/year
Updating policies in line with ESMA / EBA guidelines
from 1,900 EUR
Assistance with opening crypto-friendly bank accounts / EMIs
from 2,900 EUR
Core licensing requirements
A Latvia crypto license application succeeds when the regulator can verify five things: what services you will provide, who controls the business, how client risk is managed, whether capital is adequate, and whether the company has real operating substance. In practice, most delays come not from the application form itself but from weak documentation around governance, AML, outsourcing and financial assumptions.
The legal perimeter is defined by MiCA, while Latvia adds procedural and supervisory layers through national law and regulator practice. CASPs must also account for Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets, the Latvian AML framework, sanctions screening and data protection obligations under GDPR.
Defined MiCA service scope +
You must identify the exact CASP services to be authorised, such as custody, exchange of crypto-assets for funds, exchange of crypto-assets for other crypto-assets, transfer services, execution of orders, reception and transmission of orders, advice, portfolio management or operation of a trading platform.
Latvian legal entity and corporate readiness +
The applicant normally uses a Latvian company structure, typically SIA, with disclosed shareholders, UBOs, registered office, constitutional documents and a governance model that matches the proposed regulated activity.
Capital and prudential planning +
You need to distinguish between company law capital and regulatory capital / own funds. Under MiCA, prudential safeguards are linked to the service profile and can also be tested against the fixed overheads requirement.
AML CFT and Travel Rule framework +
The file must include workable KYC, KYB, KYT, sanctions screening, transaction monitoring, suspicious activity escalation and Travel Rule procedures. Generic templates are a common reason for regulator comments.
Fit and proper management +
Directors, senior managers, UBOs and key function holders are assessed for reputation, competence, time commitment, conflicts of interest and source of funds / source of wealth transparency.
Substance and control environment +
The regulator will look beyond a paper address. It will expect a credible operating setup covering decision-making, compliance oversight, recordkeeping, ICT security, complaints handling, safeguarding and outsourcing controls.
Jurisdiction Comparison
Compare Latvia with other jurisdictions by key conditions for obtaining and operating a MiCA/CASP license: regulator, review period, fees, capital, local substance, and passporting.
* This table focuses on MiCA/CASP authorization conditions. Use the settings icon to customize countries and parameters.
Tax and fee context for Latvian crypto businesses
Latvia is often discussed together with its corporate tax model, but tax efficiency should not be confused with licensing readiness. For a CASP, the more important question is whether the structure can support regulated substance, auditable accounting, segregated operational flows, and documented revenue recognition. Tax treatment must be reviewed together with the actual service model, especially where the business combines crypto services with fiat rails, payment partners or cross-border B2B arrangements.
As a general corporate point, Latvia is known for a 0% corporate income tax on retained / undistributed profits, with tax generally triggered upon distribution or deemed distribution. That headline is useful, but it does not replace analysis of VAT treatment, payroll taxes, transfer pricing, management fee flows, and tax residency substance. Crypto businesses should also map how custody, brokerage, software, advisory and token-related revenues are booked and evidenced.
Official state and supervisory fees should be confirmed at filing stage because they may change by law, cabinet rules or regulator schedule. In parallel, founders should budget for the full annual compliance stack: AML tooling, sanctions screening, Travel Rule vendor, legal updates, accounting, audit support, office and control staff.
Corporate income tax
Latvia applies tax primarily on distributed profits
0% retained
Corporate income tax
Latvia applies tax primarily on distributed profits
The commonly cited Latvian model is 0% on undistributed profits. Tax generally arises when profits are distributed or treated as distributed. Confirm the exact treatment for your structure, shareholder flows and expense policy with a Latvian tax adviser.
VAT
Treatment depends on the exact service supplied
case-based
VAT
Treatment depends on the exact service supplied
VAT analysis is service-specific. Crypto businesses should not assume a single VAT answer for all activities. Exchange, advisory, software, custody support and B2B technology services may require separate treatment review.
Payroll taxes
Relevant where local staff and management substance are built
applicable
Payroll taxes
Relevant where local staff and management substance are built
If your Latvian CASP employs local directors, compliance officers or operations staff, salary tax and social contributions become part of the real cost model. This is one reason shell budgeting usually fails under MiCA.
Regulatory and supervision fees
Official fees must be checked against current rules
current law
Regulatory and supervision fees
Official fees must be checked against current rules
Do not rely on old market articles for exact fee figures. Application fees, annual supervision charges and filing-related costs should be verified against current Latvian rules and regulator guidance at the time of submission.
Ongoing obligations after authorisation
A Latvian CASP must maintain live compliance, not just obtain approval. In 2026, the real operating burden sits in AML controls, prudential monitoring, governance, complaints handling, safeguarding and outsourcing oversight.
AML and sanctions operations
- Customer due diligence, enhanced due diligence and beneficial ownership verification
- Blockchain analytics, KYT alert review and sanctions screening across onboarding and transactions
- Suspicious activity escalation and reporting to the competent FIU channel where required
- Travel Rule data collection, transmission and exception handling for in-scope crypto transfers
Prudential and financial control
- Monitoring of own funds against the applicable prudential threshold
- Review of fixed overheads and capital buffer assumptions as the business scales
- Reliable accounting, reconciliations and management information for regulated reporting
- Documented treatment of client assets, fees, reserves and operational expenses
Governance and local substance
- Board oversight, conflict management and documented decision-making
- Function holder competence, training and role segregation
- Policy reviews, control testing and evidence retention
- Substance that remains credible after launch, not only at filing stage
Operational resilience and outsourcing
- Outsourcing register, vendor due diligence and contractual control rights
- ICT security, access controls, incident response and audit logs
- Complaints handling and client communication procedures
- Safeguarding design for client crypto-assets and related records
RUE handles compliance for you. Our team provides ongoing compliance support, including AML officer services, regulatory reporting, and policy updates. We ensure your license stays in good standing year after year.
Contact us for compliance support →
📝 Check Your Eligibility
Answer a few quick questions to find out if this jurisdiction suits your crypto business
Step 1 of 5
What type of crypto services will you provide?
Exchange (fiat ↔ crypto)
Custody & Wallet Services
Transfer & Payment Services
Advisory / Portfolio Management
Multiple / All of the Above
Step 2 of 5
What is your target market?
European Union only
EU + Global markets
Global (non-EU priority)
Step 3 of 5
Do you already have a registered company in the EU?
Yes, in this jurisdiction
Yes, in another EU country
No, I need to register one
Step 4 of 5
What is your available budget range?
Under €20,000
€20,000 – €50,000
€50,000 – €100,000
Over €100,000
Step 5 of 5
When do you plan to launch?
As soon as possible (1–3 months)
Within 6 months
Within a year
Just exploring options
This Jurisdiction Is a Great Fit!
Based on your answers, this jurisdiction matches your business requirements well. Here's a quick summary:
Recommended License
CASP License
Estimated Budget
€24,000 – €35,000
Estimated Timeframe
4–6 months
EU Passporting
Available
Latvia CASP licensing process
Step 1
1. Scope mapping
We identify the exact MiCA services, product flows, client types, jurisdictions, fiat dependencies and outsourcing model. This phase determines the real licensing perimeter and capital logic.
Step 2
2. Pre-application
We prepare for the familiarisation stage with Latvijas Banka by aligning the business model, governance narrative, key risks and expected regulator questions before formal filing.
Step 3
3. Company setup
We structure the Latvian entity, corporate documents, UBO disclosures, signing mechanics, registered office and operational readiness. Company formation is a prerequisite, not the licence itself.
Step 4
4. File drafting
We assemble the licensing pack: programme of operations, AML framework, financial projections, governance documents, safeguarding logic, outsourcing materials and fit-and-proper evidence.
Step 5
5. Review and remediation
The regulator reviews the file and may issue follow-up questions or deficiency requests. We coordinate responses, revise documents and support management through interviews or clarification rounds.
Step 6
6. Post-approval setup
After authorisation, we help implement the operating model: compliance calendar, reporting logic, AML tooling, Travel Rule workflow, accounting support and control evidence for ongoing supervision.
Answers
Frequently Asked Questions
Open the key issues founders, compliance teams and legal leads usually need to confirm before launch.
Can foreigners own a Latvian CASP? +
Yes. Foreign ownership is generally possible, but the structure must be transparent and support full UBO disclosure, fit-and-proper review and source-of-funds verification. Complex holding chains, nominee-style arrangements or unexplained funding routes usually increase scrutiny.
Do you need a physical office in Latvia? +
A real substance setup is usually expected. A paper address alone is rarely enough for a regulated CASP. The exact office and staffing footprint depends on the business model, scale, outsourcing design and governance structure, but the company should be able to show genuine operational presence and control.
Can the process be completed remotely? +
Many stages can be handled remotely, including document preparation and parts of company setup, especially where eIDAS-qualified signing is available. However, some steps may still require local actions, certified documents or direct interaction with the regulator.
How long does a crypto license in Latvia take? +
Most well-prepared cases are planned on a 3-6+ month horizon, but the real timeline depends on service complexity, file quality, governance readiness and the number of remediation rounds. Custody, trading platform and multi-service models usually take longer than narrow advisory or simpler exchange structures.
How much capital is required for a Latvian CASP? +
Capital depends on the authorised services. In market practice, founders often plan around EUR 50,000, EUR 125,000 or EUR 150,000 tiers, but the correct threshold must be verified against the exact MiCA service scope and prudential framework. Ongoing own-funds monitoring also matters after authorisation.
Is a wallet business always a single-service licence case? +
No. A wallet product may involve more than one regulated activity. If the wallet is custodial and also enables transfers or exchange, the business may need a broader CASP scope covering custody, transfer services and exchange-related functions. Product mapping must be done before filing.
What is the role of Latvijas Banka? +
Latvijas Banka is the competent authority for CASP authorisation and supervision in Latvia. It handles the application review, may conduct familiarisation discussions, assesses governance and prudential readiness, and supervises the firm after authorisation.
Does MiCA alone cover AML obligations? +
No. MiCA and AML are linked but separate layers. A Latvian CASP must comply not only with MiCA but also with the Latvian AML/CFT framework and the EU Travel Rule under Regulation (EU) 2023/1113. In practice, AML design is one of the decisive parts of the application.
Can a Latvian CASP serve clients across the EU? +
Potentially yes, subject to the MiCA cross-border servicing framework and the proper notification path. The legal possibility to service other EU markets does not remove the need for operational readiness, local language support, complaints handling capacity and jurisdiction-specific risk assessment.
What is the total cost of a crypto license in Latvia? +
There is no single universal figure. Total budget includes official fees, legal preparation, capital funding, office and staff, AML/KYT tools, Travel Rule implementation, accounting and ongoing compliance. The correct estimate depends on service scope, substance level and whether the model includes custody, fiat integration or heavy outsourcing.
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