The central bank of Latvia is enhancing its position as a fintech innovation hub by offering free pre-licensing consultations for crypto-asset service providers seeking the EU MiCA license.
Starting January 2025, Latvijas Banka will accept applications and issue operating permits in line with the new EU-wide licensing and legal framework for the crypto-asset industry. The pre-licensing process will provide individual consultations with experts from Latvijas Banka, ensuring guidance on application viability, regulatory compliance, and document preparedness. The bank promises a response time of 48 hours to expedite the time-to-market for services following the implementation of the regulation.
Previous pre-licensing consultations in other sectors have enabled companies to reduce their licensing timeframe to as little as three months.
Santa Purgaile, deputy governor of Latvijas Banka, emphasized Latvia’s commitment to fostering a fintech-friendly business environment, stating: “Our regulatory framework is open to innovation, in alignment with EU standards. We aim to streamline licensing processes and minimize entry barriers, offering dedicated support that prioritizes prompt, professional feedback within hours instead of the usual months-long waiting period.”
Approved crypto-asset service providers will be subject to a supervision fee of 0.6%, with a minimum annual fee of €3,000.
Marine Krasovska, head of the financial technology supervision department at Latvijas Bank, noted that obtaining a license from Latvijas Banka grants businesses the ability to scale quickly across the EU market and passport their services internationally. She added, “We have achieved excellence in compliance and are equipped to assist companies in navigating the complex requirements of MiCA regulation. Consultations can be easily arranged and are free of charge, whether scheduled online or in person. Additionally, post-licensing supervision costs for crypto companies remain competitive.”