Latvia offers fast-track pre-approval for MiCA compliance

Editorial

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Latvijas Banka will begin accepting applications and issuing operating permits starting January 2025, when new EU-wide united licence and legal framework for the crypto-asset industry will go into effect.

The pre-licencing process offers individual consultations with Latvijas Banka experts, ensuring guidance on the viability of applications, regulatory compliance, and document readiness. The bank is promising a 48-hour response time, with the aim of reducing a service’s time-to-market, thus cutting out down-time after the regulation is enacted.

Latvijas Banka says similar pre-licencing consultations in other verticals have made it possible for companies to reduce their time to obtain a licence down to three months.

Santa Purgaile, deputy governor of Latvijas Banka, says: “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 licencing processes and reducing barriers to entry. Our dedicated team offers personalized, rapid support prioritizing direct, professional feedback within hours rather than months-long waits.”

Approved cryptoasset service providers will pay a supervision fee of 0.6% but not less than €3000 annually.

Marine Krasovska, head of financial technology supervision department at Latvijas Bank says a licence from Latvijas Banka provides the opportunity to scale fast across the EU market and passport the services cross-border.

“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 MiCA regulation,” she says. “Consultations are easy to arrange and free of charge, whether scheduled online or on-site. Moreover, after acquiring a license in Latvia, supervision costs for crypto companies remain competitive.”