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Latvia Speeds Up EU MiCA Licensing Process
Latvijas Banka, Latvia’s central bank, has announced that it will be offering free pre-licensing consultations to crypto-asset service providers seeking to obtain an EU MiCA license. This new EU-wide license and regulatory framework for the crypto-asset industry will come into effect in January 2025.
Pre-Licensing Process
Latvijas Banka has established a pre-licensing process to assist companies in navigating the regulatory landscape and preparing their applications. This process involves individual consultations with bank experts who can provide guidance on:
- Application viabilit;
- Regulatory compliance;
- Document readiness.
The bank aims to provide prompt and efficient support, with an average response time of 48 hours. By streamlining the pre-licensing process, Latvijas Banka hopes to reduce the time-to-market for crypto-asset service providers.
Benefits of Obtaining a MiCA License in Latvia
- Competitive Supervision Fee: Approved crypto-asset service providers will pay an annual supervision fee of just 0.6%, with a minimum fee of €3,000.
- EU-Wide Market Access: A MiCA license issued by Latvijas Banka allows companies to operate across the entire European Union.
- Supportive Regulatory Environment: Latvia has a well-established regulatory framework and a supportive approach to financial innovation.
- Regulatory Sandbox: A sandbox environment is available to test innovative services against existing regulations.
- Innovation Hub: Fintech companies can receive free advice from experts on various regulatory and technical matters.
- Startup Support: Latvia offers various incentives for startups, including visa programs, tax breaks, and funding support.
How to Apply
Companies interested in applying for a MiCA license can contact Latvijas Banka’s Innovation Hub for a free consultation. Additional information on the pre-application process and guidance documents can be found on the bank’s website.
By offering free pre-licensing consultations and a favorable regulatory environment, Latvia aims to position itself as a leading jurisdiction for crypto-asset service providers in the EU.
How can we help?
The MiCA licensing application process begins on January 1, 2025. Every company with a VASP license will need to apply for the new MiCA CASP license. The transition period for VASPs will vary depending on the jurisdiction, but given the limited timeframe, we recommend starting preparations now. This includes developing necessary policies and establishing a local presence, such as a physical office and a team of senior AML specialists. Careful and timely preparation contributes to achieving the best outcomes.
The CASP license enables operations across the EU under a passporting framework, similar to the EMI license. The first set of requirements for stablecoin issuers took effect on June 30, 2024, while new rules for crypto exchanges will take effect on December 30, 2024. We have strong relationships, extensive experience, and an excellent reputation with local regulators, who will now also be issuing MiCA CASP licenses. This enables us to effectively support VASPs in the transition to obtaining a pan-European MiCA CASP license. Contact us today!
