Latvia

DeFi Intel Research Desk2026-07-14Europe

Is crypto legal in Latvia? (2026)

Yes — cryptocurrency is legal in Latvia. Current status: Legal — MiCA (EU). Oversight sits with Bank of Latvia (Latvijas Banka). Full details — governing law, licensing, tax and dated enforcement history — follow below (last reviewed 2026-07-14).

Framework: EU MiCA (Regulation 2023/1114) + Crypto-Asset Services Law (in force 30 June 2024).

Latvia's Crypto-Asset Services Law, in force since 30 June 2024, designates Latvijas Banka — the central bank and integrated financial supervisor — as the licensing and supervisory authority for crypto-asset service providers, with MiCA applying in full from 30 December 2024. Latvia set one of the EU's shortest transitional windows for legacy providers — six months, ending 30 June 2025; providers that filed a complete CASP application by that date could keep operating until Latvijas Banka decided on it. The Supervision Committee of Latvijas Banka issued the country's first CASP licence on 3 December 2025 to BlockBen SIA, a utility-token issuance and exchange platform operating its own private blockchain; Nexdesk SIA followed on 10 December 2025. The supervisor has actively courted applicants — offering free pre-licensing consultations (around 50 given in 2025), with 5 applications filed and 12 firms in pre-licensing consultation at the time of the first licence. The pipeline converted through 2026: by mid-2026 Latvijas Banka had authorised eight CASPs, with Paybis Europe, Neverless, Trek Technologies (Backpack EU), TWINO Investments and AlphaRoute joining between May and June 2026 and SIA GR8 PAY subsequently added as the eighth.

Tax treatment

Individuals' gains from disposing of crypto-assets are treated as capital gains and taxed at Latvia's 25.5% personal income tax rate on capital income. Income is considered received on the day fiat funds arrive on the seller's account. Gains above €1,000 per quarter must be declared to the State Revenue Service quarterly (by the 15th of the following month, tax due by the 23rd); smaller amounts are declared annually by 15 January. Separately, in January 2025 the Cabinet approved amendments to suspend for 2025–2027 the 3% withholding on non-residents' crypto disposal income, a measure aimed at attracting foreign CASPs that still required adoption by the Saeima at the time of announcement.

Travel rule applicability

Status: EU framework. The recast Transfer of Funds Regulation (EU) 2023/1113 — the crypto travel rule — applies directly in Latvia from 30 December 2024 alongside MiCA, requiring CASPs to attach originator and beneficiary information to crypto-asset transfers. Latvijas Banka supervises licensed CASPs as Latvia's integrated financial supervisor.

Notable enforcement actions

• 2025. First Latvian MiCA CASP licence issued to BlockBen SIA (3 December 2025); Nexdesk SIA followed as the second licensee on 10 December 2025.
• 2025. Latvia's six-month transitional period for legacy VASPs ended on 30 June 2025; only firms that had filed a CASP application by then could continue operating pending Latvijas Banka's decision.
• 2026. Five further authorisations May–June 2026 (Paybis Europe, Neverless, Backpack EU, TWINO, AlphaRoute) brought Latvia to seven licensed CASPs; SIA GR8 PAY was subsequently authorised as the eighth.

Public licensed CASP list

Latvijas Banka has authorised eight CASPs to date: BlockBen SIA (3 Dec 2025), Nexdesk SIA (10 Dec 2025), SIA Paybis Europe (12 May 2026), Neverless SIA (20 May 2026), Trek Technologies SIA trading as Backpack EU (27 May 2026), AS TWINO Investments (4 Jun 2026), SIA AlphaRoute (18 Jun 2026) and SIA GR8 PAY.

Comparison to neighbours

Compare Latvia crypto regulation with three geographically adjacent jurisdictions:

Doing business in Latvia — practical notes

New entrants apply to Latvijas Banka for a MiCA CASP licence, which passports across the EU/EEA. Latvia pitches itself on cost and accessibility: a €2,500 application fee (among the lowest in the EU), an annual supervision fee of 0.6% of gross revenues (minimum €3,000), free pre-licensing consultations, and a licensing decision targeted within 60 days of a complete file. Since Latvia's six-month transitional window closed on 30 June 2025, providing in-scope crypto-asset services in Latvia without a MiCA licence (domestic or passported) is unlawful, save for legacy providers awaiting a decision on an application filed by that date.

Methodology and sources

This profile was researched and updated by DeFi Intel's research desk on 2026-07-14 from the primary and secondary sources listed below. Claims that could not be verified against a source are omitted or marked pending — we do not republish unverified third-party datasets. Submit corrections and primary-source links to research@defi-intel.com.

Sources

• Latvijas Banka — first CASP licence to BlockBen SIA (3 December 2025)
• LSM — Latvian central bank issues first two crypto licences (December 2025)
• ESMA — interim MiCA register, CASPs file (July 2026 update)
• ESMA — list of MiCA grandfathering periods under Article 143(3) (Latvia: 6 months)
• CMS Expert Guide — crypto regulation in Latvia (transition to 30 June 2025, prolonged for pending applications)
• O2K — MiCA in the Baltics (licensing fees)
• Innovator.lv — Crypto-Asset Services Law and taxes in Latvia
• NJORD Law Firm — cryptocurrency taxes in Latvia (25.5% rate, declaration deadlines)
• CORVUS Accounting — crypto tax in Latvia (2026)
• Latvian Ministry of Economics — non-resident crypto tax amendment (January 2025)