The central bank of Latvia offers fast-track to EU MiCA license acquisition

Press Office of Latvijas Banka

PRESS RELEASE

Riga, 17 December 2024

The central bank of Latvia offers fast-track to EU MiCA license acquisition

The central bank of Latvia, Latvijas Banka, invites to pre-licensing consultations crypto-asset service providers looking to pursue the EU MiCA license – the new EU-wide united license and legal framework for the crypto-asset industry. Latvijas Banka will begin accepting applications and issuing operating permits starting January 2025, when the MiCA license will go into effect.

Latvijas Banka has developed both licensing and pre-licensing processes to provide support for innovators in the financial sector. The pre-licensing process offers individual consultations with Latvijas Banka experts, ensuring guidance on the viability of applications, regulatory compliance, and document readiness. Latvijas Banka emphasizes accessibility and responsiveness, ensuring prompt, human-centered communication with an average response time of 48 hours.

The pre-licensing process is aimed at reducing a service’s time-to-market, thus reducing service down-time after the regulation is enacted. Similar pre-licensing consultations in other verticals offered by Latvijas Banka have made it possible for companies to reduce their time to obtain a license down to 3 months.

“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 licensing processes and reducing barriers to entry. Our dedicated team offers personalized, rapid support prioritizing direct, professional feedback within hours.” - Santa Purgaile, deputy governor of Latvijas Banka.

Approved crypto-asset service providers will pay a supervision fee of only 0.6%, with a minimum of 3000 EUR annually.

A license from Latvijas Banka provides the opportunity to scale fast across the EU market and passport the services cross-border.

The initiative reflects a recent decade-long overhaul of the financial sector in Latvia, resulting in the development of a state-of-the-art AML regime, and placing a focus on support for financial innovators. Latvia has some of the best-certified financial services talent, with approximately 1% of the population working in the finance sector. This makes it possible not only to find skilled professionals to work with but also to collaborate effectively with state institutions.

“A license issued by Latvijas Banka is a mark of quality. 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.” - Marine Krasovska, Head of Financial Technology Supervision Department at Latvijas Banka.

Latvijas Banka has also developed guides for obtaining authorisation to provide crypto-asset services and issue tokens. These guides offer a clear overview of how to prepare and submit an application to Latvijas Banka, which documents are required, and the timeline for the application's assessment.

Companies considering applying are invited to contact Latvijas Banka experts through the Innovation Hub application for a free consultation.

Press Office of Latvijas Banka

presesdienests@bank.lv

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