MiCA Licensing in Practice: What Latvijas Banka’s Latest Authorisation Signals for EU Crypto Regulation

The continued rollout of the Markets in Crypto-Assets Regulation (MiCA) is reshaping the regulatory landscape for crypto-asset service providers across the European Union.

Latvijas Banka has recently issued authorisations to market participants under the MiCA framework, further demonstrating the practical implementation of the EU’s harmonised crypto-asset regime.

MiCA moves from legislation to execution

MiCA, which entered into force in 2024, introduced a unified regulatory framework for crypto-asset service providers (CASPs) across the EU.

In practice, the regulation requires firms to obtain authorisation before providing services such as:

• custody and administration of crypto-assets
• exchange of crypto-assets for funds or other crypto-assets
• execution of orders on behalf of clients
• transfer services related to crypto-assets

Once authorised in one EU Member State, CASPs may operate across the European Economic Area through the cross-border notification regime, significantly increasing the importance of the initial licensing jurisdiction.

Supervisory expectations are rising beyond formal compliance

While MiCA establishes a harmonised legal framework, supervisory practice across EU regulators shows that licensing is increasingly assessed not only on formal documentation, but also on:

• governance and organisational structure
• internal control frameworks
• AML and risk management systems
• operational resilience and outsourcing arrangements
• long-term sustainability of the business model

As a result, licensing under MiCA is becoming a comprehensive regulatory assessment rather than a procedural approval process.

Baltic region positioning within EU fintech regulation

The Baltic States continue to play an active role in the development of the EU fintech and digital asset ecosystem.

With MiCA implementation progressing, the region is increasingly positioned as an entry point for crypto-asset service providers seeking access to the EU market under a harmonised regulatory framework.

How ECOVIS ProventusLaw can help you?

ECOVIS ProventusLaw advises fintech, payments, and digital asset businesses on:

• MiCA and CASP licensing strategy and applications
• payment and electronic money institution licensing
• regulatory structuring and cross-border expansion
• governance, compliance, and AML frameworks
• supervisory engagement and regulatory risk management

Our team supports clients throughout the full lifecycle of regulatory authorisations, from pre-licensing strategy to post-licensing compliance design.

MiCA is no longer a future regulatory framework — it is now an operational licensing regime actively shaping the European crypto-asset market.

As supervisory practice continues to evolve, the focus is increasingly shifting from whether firms can obtain authorisation to how effectively they can demonstrate sustainable, well-governed and compliant business models within the EU regulatory environment.