Latvia

{
  "analysis_text": "Latvia has successfully transitioned from a basic AML-registration regime to a comprehensive regulatory environment under the European Union\u0027s Markets in Crypto-Assets (MiCA) regulation. As of December 12, 2025, the country is in the full implementation phase. The national \u0027Law on Crypto-asset Services\u0027, adopted in July 2024, designated Latvijas Banka (the Central Bank) as the sole competent authority for licensing and supervision, replacing the fragmented oversight previously shared with the State Revenue Service (SRS). This move has centralized control and elevated the standards for market participants.\n\nThe licensing regime is active and operational. In early December 2025, Latvijas Banka issued its first CASP licenses under the new MiCA framework to entities such as \u0027BlockBen\u0027 and \u0027Nexdesk\u0027. These licenses allow the firms to passport their services across the entire European Union, positioning Latvia as a competitive fintech hub. The rigorous authorization process requires applicants to demonstrate robust governance, IT security, and AML/CFT control mechanisms, ensuring a high level of consumer protection.\n\nFor retail investors, the environment is stable and clearly defined. Trading, holding, and transferring cryptocurrencies are legal activities. The tax treatment is explicitly codified: individuals are subject to a 20% Personal Income Tax on capital gains derived from the sale of crypto assets. The taxable event is triggered upon conversion to fiat currency or purchase of goods/services, while crypto-to-crypto exchanges typically remain tax-neutral. Furthermore, recent amendments to the Commercial Law allow entrepreneurs to contribute crypto-assets as share capital for establishing limited liability companies, further integrating digital assets into the formal economy.\n\nA transition period remains in effect for legacy operators. Companies that were registered as Virtual Asset Service Providers (VASPs) with the SRS prior to December 30, 2024, are permitted to continue operations until June 30, 2025. To extend operations beyond this date, they must have submitted a full CASP license application to Latvijas Banka. This grandfathering clause ensures market continuity while pushing all actors toward the higher compliance standards of MiCA.",
  "confidence_level": "High",
  "executive_summary": "Cryptocurrency activities in Latvia are fully legal and regulated under the EU\u0027s Markets in Crypto-Assets (MiCA) framework, which was integrated into national law via the Law on Crypto-asset Services in 2024. Latvijas Banka (the Central Bank) serves as the primary regulator and has actively issued licenses to Crypto-Asset Service Providers (CASPs) as of December 2025. Retail trading is permitted, with clear tax guidelines imposing a 20% capital gains tax on profits.",
  "grounding_urls": [
    {
      "resolved_url": "https://www.tetraconsultants.com/blog/how-latvia-cryptocurrency-regulation-impacts-blockchain-startups/",
      "title": "tetraconsultants.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFapwZ5p2DM805ZQROH9I6xpIi23-6svB0XuvPYpAhnwrTB71xHaq7UPTJjgqbbC3NnU-G-aM1ccTbSmlvc50ZuyIrJXrkjMQngjTIwEyug8Uw7uDoI5rSkWj0eu0XQ3xoI9-B0T4l7cKSrTbScx9q1T7xZf31sQyqBKhAR0hMFX8LWeFMyNKKueHCOHdkQ-Yn4ZU8YeUexseavnNF4yFgZFFE="
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      "resolved_url": "https://eng.lsm.lv/article/economy/banks/11.12.2025-latvian-central-bank-issues-first-two-crypto-licences.a625959/",
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      "resolved_url": "https://coinfomania.com/cryptocurrency-regulation-in-latvia/",
      "title": "coinfomania.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEvHkDyCdJKENCHyqu9dfTkLISm5u9P74BhM9rXuR8x_ianAOG8tbXPhgVsUxU4VPS8wBxvCbt9BK6O2gXQiCbU6ksWts-JHt6Bz_sofFvF-W_jVqp-IcBVXDV21pLNpy06UGwpyVDdaF4hABZ4c04KYQLDN6NY5Q=="
    },
    {
      "resolved_url": "https://legalaes.com/latvia-crypto-license/",
      "title": "legalaes.com",
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      "resolved_url": "https://fintechlatvia.eu/crypto-asset/mica-regulation/",
      "title": "fintechlatvia.eu",
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    {
      "resolved_url": "https://www.baltictimes.com/latvia_launches_mica_era_with_first_eu-level_crypto-asset_licences___positions_itself_as_gateway_to_the_eu_fintech_market/",
      "title": "baltictimes.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF1dys3_jo0JKf2_QLvl_1Ks7-O0gfyvW-rebA7yO0F6Hc7FVhvvLDkcDRBOhNa8dFE_V2rAE9Hvt1WzcuJB9CnQRKj8yoIc4eGGE_vxY-x1o34N7CeuPrisPKwgHaYYX5n4-aYauWkfDeFxsD-0npsov3cdSq1RPrpUR8FueCpejp8obv1GXuuARDJOHjMlkNNQUUftrxjdnStA092FZ8Wao7wxDGJp67VHQ331nXk0AiyXcHI31ek3jV5mjQ8yq_anvvP30pO3vzlQC1MteS_HI8="
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    {
      "resolved_url": "https://blog.mexc.com/wiki/are-there-any-taxes-for-crypto-in-latvia/",
      "title": "mexc.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF21O0LX9ObFDBMEo989SidzfsoAL5J8nQ4IRQnckt91ic5OkhdLp1fDGeeb4EutclxDseWdJfi91Bh0S2ZwekXVDrNUd-IMDT25N1G3IsczY-8n7XXjDRAjEzXwLS9xS8tTIDjbv0-mHO3uO9oP-2RujgsLted791fx7IXqTRi"
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      "resolved_url": "https://innovator.lv/crypto-assets-and-taxes-in-latvia-key-points-in-one-place/?lang=en",
      "title": "innovator.lv",
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      "resolved_url": "https://www.tetraconsultants.com/jurisdictions/register-company-in-latvia/latvia-cryptocurrency-license/",
      "title": "tetraconsultants.com",
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      "resolved_url": "https://blog.mexc.com/wiki/is-crypto-legal-in-latvia/",
      "title": "mexc.com",
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    {
      "resolved_url": "https://incfine.com/en/how-to-get-a-crypto-license-in-latvia-and-build-real-access-to-the-eu-crypto-scene/",
      "title": "incfine.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGm18kn4td-hMiEgn3bh2IhhC3tmcdYnJto5nXJdHKoA1X73g-q0KRKK4WLv1vEQmDlJ7E5LyLonLw6YokGasAa2HTHXLD4cre2rcDrhFSAf2c8Xu9anej5-a3p5c21Xo3LYe9sCqpLtYvACBY5K3PDDc4O_xvi1gp24dGHPMo5YbATSsJdT8eG8t9hWU09h9gCONky3h7ZrDHOyQgK-byMboPTrFk="
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  ],
  "status": "Allowed-Regulated",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "Latvia has successfully transitioned from a basic AML-registration regime to a comprehensive regulatory environment under the European Union\u0027s Markets in Crypto-Assets (MiCA) regulation. As of December 12, 2025, the country is in the full implementation phase. The national \u0027Law on Crypto-asset Services\u0027, adopted in July 2024, designated Latvijas Banka (the Central Bank) as the sole competent authority for licensing and supervision, replacing the fragmented oversight previously shared with the State Revenue Service (SRS). This move has centralized control and elevated the standards for market participants.\n\nThe licensing regime is active and operational. In early December 2025, Latvijas Banka issued its first CASP licenses under the new MiCA framework to entities such as \u0027BlockBen\u0027 and \u0027Nexdesk\u0027. These licenses allow the firms to passport their services across the entire European Union, positioning Latvia as a competitive fintech hub. The rigorous authorization process requires applicants to demonstrate robust governance, IT security, and AML/CFT control mechanisms, ensuring a high level of consumer protection.\n\nFor retail investors, the environment is stable and clearly defined. Trading, holding, and transferring cryptocurrencies are legal activities. The tax treatment is explicitly codified: individuals are subject to a 20% Personal Income Tax on capital gains derived from the sale of crypto assets. The taxable event is triggered upon conversion to fiat currency or purchase of goods/services, while crypto-to-crypto exchanges typically remain tax-neutral. Furthermore, recent amendments to the Commercial Law allow entrepreneurs to contribute crypto-assets as share capital for establishing limited liability companies, further integrating digital assets into the formal economy.\n\nA transition period remains in effect for legacy operators. Companies that were registered as Virtual Asset Service Providers (VASPs) with the SRS prior to December 30, 2024, are permitted to continue operations until June 30, 2025. To extend operations beyond this date, they must have submitted a full CASP license application to Latvijas Banka. This grandfathering clause ensures market continuity while pushing all actors toward the higher compliance standards of MiCA.",
    "executive_summary": "Cryptocurrency activities in Latvia are fully legal and regulated under the EU\u0027s Markets in Crypto-Assets (MiCA) framework, which was integrated into national law via the Law on Crypto-asset Services in 2024. Latvijas Banka (the Central Bank) serves as the primary regulator and has actively issued licenses to Crypto-Asset Service Providers (CASPs) as of December 2025. Retail trading is permitted, with clear tax guidelines imposing a 20% capital gains tax on profits.",
    "important_considerations": [
      "Taxation: Capital gains from crypto are taxed at 20% (Personal Income Tax). Crypto-to-crypto trades are generally not taxable events until converted to fiat.",
      "Transition Period: Entities operating before Dec 30, 2024, may continue under the old AML registration regime until June 30, 2025, if they applied for a CASP license.",
      "Share Capital: As of late 2024, Latvian companies can legally use crypto-assets to pay for share capital.",
      "VAT: Exchange services (fiat-to-crypto) are exempt from VAT."
    ],
    "key_regulatory_pillars": [
      "Primary Regulator: Latvijas Banka (Central Bank of Latvia) handles CASP licensing and prudential supervision.",
      "AML/CFT Compliance: Enforced by the Financial Intelligence Unit (FIU) and Latvijas Banka under MiCA and national AML laws.",
      "Licensing Regime: Mandatory CASP authorization for all service providers; transition period active until June 2025 for pre-existing entities.",
      "Taxation: State Revenue Service (SRS) administers a 20% capital gains tax on crypto-to-fiat conversions for individuals."
    ],
    "landmark_legislation": [
      {
        "date_enacted": "2024-07-13",
        "identifier": "Crypto-Asset Services Law",
        "name": "Law on Crypto-asset Services",
        "summary": "The primary national legislation implementing the EU MiCA regulation. It designates Latvijas Banka as the competent authority, establishes licensing fees, and sets supervision standards.",
        "url": "https://likumi.lv/ta/id/353683-kriptoaktivu-pakalpojumu-likums"
      },
      {
        "date_enacted": "2023-05-31",
        "identifier": "EU 2023/1114",
        "name": "Regulation (EU) 2023/1114 (MiCA)",
        "summary": "EU-wide regulation establishing a harmonized framework for crypto-assets, replacing local VASP regimes with a passportable CASP license.",
        "url": "https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1114"
      },
      {
        "date_enacted": "2019-06-13",
        "identifier": "AML/CFT Law",
        "name": "Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing",
        "summary": "Defines virtual currency service providers as subject entities requiring AML/KYC compliance (amended to align with MiCA definitions).",
        "url": "https://likumi.lv/ta/en/en/id/300116"
      }
    ],
    "notes_and_comments": "The analysis reflects the regulatory state as of December 12, 2025. Latvia is positioning itself as an early adopter and \u0027friendly\u0027 jurisdiction for MiCA compliance to attract fintech business.",
    "primary_sources": [
      {
        "date": "2024-07-08",
        "key_quote": "A legal person... authorized to provide crypto-asset services by Latvijas Banka in line with Regulation (EU) 2023/1114, is entitled to provide crypto-asset services.",
        "source_type": "regulator",
        "title": "Crypto-asset service providers | Latvijas Banka",
        "url": "https://www.bank.lv/en/licensing/crypto-asset-service-providers"
      },
      {
        "date": "2025-12-11",
        "key_quote": "Latvia has issued its first licences under the EU\u0027s Markets in Crypto-Assets Regulation (MiCA)... officials announced that BlockBen and Nexdesk are the first companies authorised by Bank of Latvia.",
        "source_type": "news",
        "title": "Latvia launches MiCA era with first EU-level crypto-asset licences",
        "url": "https://www.baltictimes.com/latvia_launches_mica_era_with_first_eu-level_crypto-asset_licences___positions_itself_as_gateway_to_the_eu_fintech_market/"
      },
      {
        "date": "2024-07-13",
        "key_quote": "The purpose of this Law is to ensure the application of Regulation (EU) 2023/1114... designating Latvijas Banka as the competent authority.",
        "source_type": "law_text",
        "title": "Law on Crypto-asset Services (Kriptoakt\u012bvu pakalpojumu likums)",
        "url": "https://likumi.lv/ta/id/353683-kriptoaktivu-pakalpojumu-likums"
      }
    ],
    "remaining_uncertainties": [
      "The exact number of legacy VASPs that will successfully transition to full CASP status by the June 2025 deadline is unknown.",
      "Specific enforcement actions under the new MiCA regime are yet to be seen as the licenses were issued very recently (Dec 2025)."
    ],
    "secondary_sources": [
      {
        "date": "2025-12-11",
        "key_quote": "On 10th December, the Supervisory Committee of Latvijas Banka... issued a license to a company called \u0027Nexdesk\u0027.",
        "source_type": "news",
        "title": "Latvian central bank issues first two crypto licences",
        "url": "https://eng.lsm.lv/article/economy/banks/11.12.2025-latvian-central-bank-issues-first-two-crypto-licences.a579823/"
      },
      {
        "date": "2025-10-21",
        "key_quote": "Crypto assets are considered capital assets, and income from their sale is subject to the Capital Gains Tax rate of 20%.",
        "source_type": "analysis",
        "title": "Crypto Assets and Taxes in Latvia",
        "url": "https://www.innovator.lv/crypto-assets-and-taxes-in-latvia/"
      }
    ],
    "status": "Allowed-Regulated"
  }
}