MiCA License in Latvia: CASP Authorization for Crypto Businesses

Why Latvia for MiCA CASP License

Latvia has become one of the most active routes to a MiCA license. Latvijas Banka de-risks applications early through free pre-licensing consultations, combined with the lowest statutory fees in the EU.

• Lowest entry cost in the EU. The application fee is EUR 2,500. Annual supervision runs at 0.6% of gross income, with a EUR 3,000 minimum.
• Tax that favors reinvestment. Retained and reinvested profit is taxed at 0%. Corporate income tax of 20% falls due only when profit is distributed.
• Strong AML standing. In the 6th Round Mutual Evaluation Report, MONEYVAL awarded Latvia exceptionally high ratings, acknowledging its compliance with 39 out of 40 FATF recommendations and significant progress in combating financial crimes.
• The regulator talks to you before you file. Latvijas Banka runs roughly 100 free pre-licensing consultations a year, held in English.
• Crypto and fiat under one roof. A CASP license covers crypto services only. Firms handling fiat flows apply for a payment institution license alongside it, at the same regulator and in the same process. The payment license brings SEPA access through Latvijas Banka and payee name verification.
• Growth is national policy. Latvia’s fintech strategy sets an explicit target of increasing the number of fintech companies in the country by one third.

CASP License or Token Issuance?

MiCA covers two different activities. Providing crypto-asset services on behalf of clients requires a CASP license. Issuing your own token does not require a CASP license, but may require a different authorization depending on the token type.

A CASP license covers ten services: custody and administration, operating a trading platform, exchange for funds, exchange for other crypto-assets, order execution, placing, reception and transmission of orders, advice, portfolio management, and transfer services. A legal person providing one or more of these services to customers on a professional basis requires authorization.

If you are issuing a token, what you need depends on its type. Asset-referenced tokens (ARTs) require authorization from Latvijas Banka, unless the token stays under EUR 5 million in average outstanding value over 12 months or is offered only to qualified investors. Even then, a white paper is still required. Electronic money tokens (EMTs) may only be issued by a credit institution or an e-money institution.

Other crypto-assets, including utility tokens, generally do not require issuer authorization under MiCA, but public offers or admissions to trading may require a crypto-asset white paper to be notified to Latvijas Banka before publication, subject to the applicable exemptions.

Read our full tokenization and compliance guide for detailed structuring rules.

The Latvian Licensing Process

Stage one: pre-licensing consultation

Before any formal filing, Latvijas Banka meets the applicant to go through the planned business model. The company does not need to be incorporated yet, and the consultation is free.

You bring information on shareholders, the origin of capital, and how each intended service will work. The regulator advises on the applicable rules and required documents, and gives a view on whether the application can proceed. Issues that would otherwise delay the formal review, or force a withdrawal, get resolved before it starts. Responses take up to 30 days.

Stage two: application and review

The application goes in under Article 62 of MiCA. Latvijas Banka runs a completeness check within 25 working days, then a substantive assessment within 40 working days, and issues its decision. The assessment period can be extended if the regulator needs more information.

How long does a MiCA license take in Latvia?

Latvia currently offers one of the fastest licensing timelines, with Latvijas Banka indicating an average process of around three months.

Requirements for a MiCA License in Latvia

• Registered office. A Latvian company with a physical office in the country. Virtual offices are not accepted. The office and company are not required during the consultation stage.
• Board. At least one board member must be locally based.
• Ownership eligibility. Shareholders, beneficial owners and board members must not be Russian or Belarusian nationals or residents, unless they also hold EU, EEA or Swiss nationality or a valid residence permit in one of those states.
• Shareholders. A holding of 10% or more of share capital or voting rights counts as a qualifying holding. It must be notified to Latvijas Banka in advance and assessed before it is acquired. The assessment covers reputation, competence, financial stability and the origin of the funds used to acquire the holding.
• Own funds. EUR 50,000 to 150,000 depending on the services applied for. The capital must be paid up before the license is granted. Crypto-assets held on the balance sheet do not count towards it.
• Key function holders. The application sets out who will hold the compliance and AML roles and what their qualifications are. The full team does not need to be on payroll before the license is granted and operations begin.

How Much Does a MiCA License Cost in Latvia?

Securing a MiCA CASP authorization in Latvia requires a EUR 2,500 application fee, the lowest entry cost in the EU, supported by free pre-licensing consultations from Latvijas Banka. Initial capital requirements range from EUR 50,000 to EUR 150,000 depending on the scope of crypto services provided.

State Application and Supervision Fees:

• Application fee: EUR 2,500 (payable upon submission, the lowest fee in the EU).
• Pre-licensing consultation: free of charge.
• Assessment and decision stages: no additional fees.
• Annual supervision fee: 0.6% of annual gross income from crypto-asset services, minimum EUR 3,000, maximum EUR 300,000 per year.
• ART authorization fee: EUR 2,500 for entities not already supervised by Latvijas Banka, EUR 1,250 per additional token for supervised entities, capped at EUR 5,000 per year.
• EMT fees: Initially free of charge under Latvian Financial Market Regulations. The issuer is already a licensed credit or e-money institution and pays supervision fees under that license.

Own funds are the larger cost. MiCA sets the same minimums across the EU, and the amount depends on which services you apply for:

• EUR 50,000: advice, portfolio management, reception and transmission of orders, execution of orders, placing, transfer services
• EUR 125,000: custody and administration, exchange for funds, exchange for other crypto-assets
• EUR 150,000: operation of a trading platform

A firm providing services in more than one class must meet the highest applicable floor. The capital must be paid up before the license is granted, and crypto-assets on the balance sheet do not count towards it. Once the firm is operating, own funds must be the higher of that floor or one quarter of the previous year’s fixed overheads.

Documents Required for a MiCA License in Latvia

Latvijas Banka’s application requirements cover 20 categories of information and documents, which in practice fall into four groups.

The company and the people. Application form, articles of association, and a programme of operations setting out which services you will provide, where and how. For the management body: CVs, documents certifying education, and criminal record statements, with an assessment of repute, knowledge, skills and experience. For shareholders with a qualifying holding: identity, size of holding, repute assessment and a description of the shareholder structure.

What you will do. The programme of operations, evidence of prudential safeguards under Article 67, and information on the type of crypto-asset involved in each service.

How you will control it. Governance arrangements, and group governance if you are a subsidiary of an institution regulated in another member state. Internal control and risk management framework covering administrative, risk and accounting procedures. The AML, counter-terrorist financing and sanctions system, with a risk assessment of the services provided. Business continuity planning. Complaints handling. An outsourcing policy if you outsource.

The technology and client assets. Technical documentation of ICT systems and security arrangements with a risk assessment, and a description of how client crypto-assets and funds are kept separate from the firm’s own.

Service-specific documents come on top: custody arrangements for custody services, operating rules and market abuse detection for a trading platform, a pricing methodology and non-discriminatory trading policy for exchange, an execution policy for order execution, evidence of expertise for advice and portfolio management, and a description of how transfers will be handled for transfer services.

Passporting of MiCA CASP License

A Latvian CASP license works across all 30 EEA countries. Latvijas Banka notifies the host state regulators, and they do not need to approve. You apply once and serve clients EU-wide.

End-to-end Support for MiCA Licensing and Authorization in Latvia

We guide crypto and payment institutions from licensing strategy to post-authorization compliance, including combined MiCA and payment/e-money institution applications, pre-licensing consultations with Latvijas Banka, and complete AML/CTF framework setup. Our team has secured regulatory authorizations across more than 40 end-to-end fintech licensing projects.

Our top ranked FinTech team will help you with:

• Pre-Licensing Audit & Strategy: Gap identification and readiness reviews.
• CASP Licensing & Filing: Preparation and submission of complete authorization packages to financial regulators.
• Token Legal Structuring: Classification of tokens (ART, EMT, utility), formal legal opinions, and white paper drafting with regulatory notification.
• Governance & Operational Resilience: Custom AML/CTF frameworks, internal control policies, and DORA-compliant ICT systems.
• Latvian Company Formation Support: Assistance registering an SIA (private limited company) and obtaining the registration certificate, including guidance on local office and board arrangements.
• Post-Licensing Support: Continuous compliance monitoring, reporting, and advisory.

Get in touch to arrange a free introductory regulatory briefing.