The Complete Guide to Obtaining a Latvia CASP License under MiCA
Latvia is one of the EU’s most accessible jurisdictions for crypto-asset service provider (CASP) authorization under the Markets in Crypto-Assets Regulation (MiCA). Latvijas Banka, the national competent authority, offers a structured licensing framework, free pre-licensing consultations, and a formal Innovation Hub that reduces application risk for new entrants. Authorization grants passporting rights across all 27 EU member states.
This guide covers the complete Latvia CASP licensing process: the regulatory framework now in force, the three-tier capital structure, the compliance and substance requirements Latvijas Banka enforces, the step-by-step application process, and what existing VASP operators must do before the transition deadline.
Experts in fintech and crypto licensing worldwide.
Kirill Gussev advises crypto and digital asset companies on VASP and CASP licensing, MiCA authorization, and international corporate structuring at LegalBison.
CASP license in Latvia - MiCA license in Latvia
Latvia’s pre-MiCA VASP registration regime closed to new applicants on December 30, 2024. From that date, every business providing crypto-asset services professionally in Latvia must hold formal CASP authorization from Latvijas Banka under MiCA. The registration-based model that previously allowed relatively light-touch entry no longer applies.
The practical significance of this shift is substantial. VASP registration was largely administrative. CASP authorization requires demonstrated governance, adequate own funds calibrated by activity tier, confirmed local substance, a qualified MLRO, and ICT resilience documentation meeting DORA standards. The bar for entry is higher. The license is correspondingly more valuable: a Latvian CASP authorization grants direct access to the EU single market through MiCA passporting without the need for separate national authorizations in each member state.
For a detailed breakdown of MiCA’s scope, timeline, and passporting mechanics, see LegalBison’s MiCA regulation overview and MiCA license guide.
Latvia offers a combination of regulatory support, tax efficiency, and banking infrastructure that positions it competitively among EU CASP jurisdictions. For growth-stage crypto businesses targeting EU market access, the package is worth examining carefully.
For a broader comparison of EU licensing options, see crypto licensing in Europe.
A Supportive Regulatory Environment
Latvijas Banka provides free pre-licensing consultations to prospective applicants. These sessions allow businesses to present their model, receive substantive feedback on capital origin and technical workflows, and address structural issues before formal submission. The regulator operates both an Innovation Hub and a Regulatory Sandbox, reducing ambiguity for novel business models that do not fit neatly into existing MiCA categories.
This proactive approach is a structural differentiator. Several EU competent authorities offer limited or purely informal pre-application engagement. At Latvijas Banka, the consultation is formal and documented, meaning applicants enter the submission phase with significantly greater clarity on what the regulator expects.
Tax Efficiency and Competitive Fees
Latvia applies a 0% corporate income tax rate on undistributed profits. Distributed profits are taxed at 20% at the point of distribution. This structure mirrors the Estonian corporate tax model and benefits businesses that reinvest rather than extract earnings in early growth phases.
The annual supervision fee charged by Latvijas Banka is capped at 0.6% of gross revenues, with a minimum of EUR 3,000 per year. This is among the lowest supervisory cost structures in the EU for licensed financial entities.
SEPA Access and Banking Infrastructure
Latvijas Banka is developing the conditions for licensed payment and electronic money institutions to access SEPA infrastructure directly from Latvia. For CASP companies headquartered in the jurisdiction, this improves euro-denominated settlement connectivity and reduces dependence on correspondent banking arrangements that add cost and latency to operational payment flows.
Latvia implements the three-tier CASP classification defined in MiCA. Each class permits a defined set of crypto-asset services and carries a corresponding minimum own funds requirement. Applicants must identify the class that covers their intended activities before preparing documentation, as the package and capital evidence requirements differ materially by tier.
Class 1: Entry-Level CASP
Class 1 covers order reception and transmission, execution of orders on behalf of clients, providing advice on crypto-assets, and portfolio management services. This class suits advisory firms, execution intermediaries, and asset managers that do not provide custody or operate a trading platform. The minimum own funds requirement is EUR 50,000.
Class 2: Intermediate CASP
Class 2 covers all Class 1 activities plus: custody and administration of crypto-assets on behalf of clients, and exchange of crypto-assets for funds or for other crypto-assets. Custodial wallet providers, OTC desks, and exchange operators that do not operate an order book trading platform fall into this tier. The minimum own funds requirement is EUR 125,000.
Class 3: Advanced CASP
Class 3 covers all Class 1 and Class 2 activities plus: the operation of a crypto-asset trading platform. This is the most regulated and operationally demanding authorization tier, applicable to centralized exchange operators. The minimum own funds requirement is EUR 150,000.
| CASP Class | Permitted Services | Min. Own Funds |
| Class 1 | Order reception and transmission, execution on behalf of clients, crypto-asset advice, portfolio management | EUR 50,000 |
| Class 2 | All Class 1 services, plus: custody and administration of crypto-assets, exchange of crypto-assets for funds or other crypto-assets | EUR 125,000 |
| Class 3 | All Class 1 and Class 2 services, plus: operation of a crypto-asset trading platform | EUR 150,000 |
Latvijas Banka applies rigorous substance and governance standards when assessing CASP applications. These are not administrative formalities: the regulator reviews documentation in depth and will return incomplete or deficient packages during the completeness check, resetting the statutory review timeline.
Local Company Formation and Physical Presence
Applicants must incorporate a Latvian private limited liability company (SIA) before submission. The SIA must maintain a registered office and genuine local substance in Latvia: a physical place of business, senior management who are resident in Latvia or demonstrably present in the jurisdiction, and a locally appointed AML Compliance Officer. Brass-plate arrangements holding only a registered address with no functional presence are rejected. LegalBison incorporates the SIA directly as part of its full implementation service. See company registration in Latvia for details on the formation process.
Governance and Fit and Proper Standards
All directors, shareholders with qualifying holdings, and ultimate beneficial owners must pass Latvijas Banka’s background verification. The fit and proper assessment covers professional experience relevant to the proposed activities, absence of prior regulatory sanctions or criminal convictions, and financial soundness. The regulator takes an expansive view of qualifying holdings, requiring declarations and supporting documentation from shareholders across multiple ownership levels.
AML/CFT, DORA, and Operational Resilience
A local MLRO must be named in the application package. The AML/CFT documentation must include: a business-wide risk assessment, customer due diligence and enhanced due diligence procedures, transaction monitoring policies, suspicious activity reporting procedures, and staff training records. ICT and cybersecurity documentation must satisfy the Digital Operational Resilience Act (DORA) requirements that apply to financial entities, including crypto-asset service providers, across the EU from January 2025.
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As a result of the fruitful cooperation with LegalBison, Yellow Card obtained a VASP registration, fast and without any legal complications.
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LegalBison helped us navigate a space that’s often uncertain and complex, which gave us the confidence to move forward with our project.
CASP in Latvia: Cost of Set-Up
Whether you want to license an existing company as a CASP or build a legal entity from scratch, we recommend starting with a thorough assessment of your options. LegalBison provides a free primary consultation with a lawyer for all kinds of businesses seeking CASP authorization. Get in touch with us today and have our in-house lawyers study your case and provide a personalized roadmap.
Kirill Gussev advises crypto and digital asset companies on VASP and CASP licensing, MiCA authorization, and international corporate structuring at LegalBison.
+44 20 4577 0974
Strongly advised: a legal assessment of your project and feasibility under MiCA.
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Initial Consultation
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MiCA Compliance Assessment
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MiCA Operational Assessment
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CASP Licence Class Assessment
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Application Preparation
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Interaction with the NCA
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Company Formation
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Corporate Services for 1 year
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Bank Account Opening Assistance
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Legal Web3 Documents Package
Our expert assistance in successfully securing a CASP license for MiCA.
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Initial Consultation
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MiCA Compliance Assessment
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MiCA Operational Assessment
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CASP Licence Class Assessment
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Application Preparation
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Interaction with the NCA
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Company Formation
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Corporate Services for 1 year
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Bank Account Opening Assistance
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Legal Web3 Documents Package
Set-up of a complete, MiCA compliant CASP company in Latvia.
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Initial Consultation
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MiCA Compliance Assessment
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MiCA Operational Assessment
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CASP Licence Class Assessment
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Application Preparation
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Interaction with the NCA
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Company Formation
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Corporate Services for 1 year
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Bank Account Opening Assistance
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Legal Web3 Documents Package
Step-by-Step Application Process with Latvijas Banka
The Latvia CASP application follows a three-stage process. Preparation quality at each stage directly determines the timeline and outcome. Applications returned during the completeness check add months to the review cycle and do not preserve any position in the review queue.
Pre-Licensing Consultation
The first step is requesting a free pre-licensing consultation with Latvijas Banka. The regulator uses these sessions to evaluate the business model, review the source and adequacy of proposed capital, and identify structural issues that should be addressed before formal submission. This consultation is not required but materially reduces rejection risk. LegalBison prepares clients for the session and participates in the regulator dialogue on behalf of the applicant.
Application Submission
The formal application package must include: a comprehensive business plan covering proposed services and target markets, AML/CFT policies and procedures, IT and cybersecurity documentation, governance documentation including an organizational chart and management biographies, UBO declarations and supporting corporate structure documentation, evidence of minimum own funds, and the non-refundable application review fee of EUR 2,500. The package must be complete at submission. Latvijas Banka does not accept partial submissions for review.
Completeness Check and Substantive Review
Latvijas Banka conducts a 25-day completeness check upon receipt of the application package. If the submission passes the completeness check, the regulator proceeds to a 40-day substantive review. During the substantive review period, the regulator may request supplementary information. Response deadlines must be observed: delays in responding extend the review timeline proportionally. Upon a successful substantive review, CASP authorization is granted and passporting rights across the European Economic Area become active immediately.
Need assistance from a MiCA expert?
Our lawyers are available for a personalized free consultation. If you have any questions about CASP licensing in Latvia, no matter what they are, feel free to leave your request on this page or call us right away. Our in-house lawyers will study your case and provide you with the best solution for licensing your crypto company under MiCA’s framework.
- The VASP-to-CASP Transition: What Existing Operators Must Do
Companies operating under the pre-MiCA Latvian VASP registration regime face a defined transition deadline. Under MiCA's transitional provisions, Latvian VASPs must file a complete CASP application with Latvijas Banka by June 30, 2025. Filing by this date preserves the right to continue operating while the review is in progress. It does not guarantee authorization.
Operating without a filed application after June 30, 2025, or continuing to provide services after the grandfathering period expires without CASP authorization, creates legal exposure under Latvian law and MiCA's enforcement framework. Companies that have not yet prepared their compliance documentation should treat the timeline as urgent: the preparation phase alone typically requires 3 to 4 months for a well-resourced team starting from scratch.
For a comparison of the VASP, CASP, and DASP licensing regimes across EU and offshore jurisdictions, see LegalBison's CASP, VASP, and DASP explained.
Latvia vs Other EU CASP Jurisdictions
Latvia competes directly with Lithuania, Estonia, and Poland for EU-based CASP licensing mandates. The comparison below covers the parameters that matter most for operational and commercial decision-making.
| Parameter | Latvia | Lithuania | Estonia | Poland |
| Class 3 Capital | EUR 150,000 | EUR 150,000 | EUR 150,000 | EUR 150,000 |
| Annual Supervision Fee | 0.6% of revenues (min EUR 3,000) | Activity-based | Variable | Activity-based |
| Corporate Tax on Retained Profits | 0% | 15% standard CIT | 0% (distributed at 20%) | 19% standard CIT |
| Pre-Licensing Consultations | Yes (free, formal) | Limited | Limited | Limited |
| Indicative Timeline | 3-6 months | 4-6 months | 6-9 months | 6-12 months |
Latvia's primary differentiators are the free formal pre-licensing consultation process at Latvijas Banka, the 0% corporate income tax on retained profits, and the active development of SEPA banking infrastructure. For businesses that have not previously engaged with an EU financial regulator, the pre-licensing consultation infrastructure at Latvijas Banka reduces application risk in a way that is not available in most comparable jurisdictions.
For detailed guidance on Lithuania and Estonia, see LegalBison's CASP license in Lithuania and MiCA license in Estonia.
How LegalBison Supports Your Latvia CASP Application
LegalBison manages the complete Latvia CASP licensing engagement from initial business model assessment through to post-authorization support. As a licensed Corporate Service Provider with offices in Poland, Estonia, Bahrain, Costa Rica, Panama, and Malaysia, the firm incorporates the SIA directly, prepares the full documentation package, drafts AML/CFT policies to Latvijas Banka's standards, sources and appoints a qualified MLRO, and manages all regulator communications throughout the review process. Clients work with a single point of contact while the firm's legal, compliance, and corporate administration teams execute each deliverable in sequence.
The Latvia CASP engagement follows LegalBison's structured implementation methodology: jurisdictional strategy, operational architecture, regulatory navigation, legal documentation, and licensing execution. No phase begins without the prior phase being completed and reviewed. This sequenced approach protects clients from the compounding delays caused by incomplete submissions or premature filing.
LegalBison has delivered CASP and VASP licensing engagements across EU and offshore jurisdictions for clients including centralized exchanges ranked among the highest-volume platforms globally, institutional stablecoin infrastructure providers, and VC-backed payment platforms. The same structured process applies to every Latvia CASP mandate.
Contact LegalBison to schedule an initial assessment of your business model and proposed corporate structure.
Alternatives to a CASP license in Latvia
We encourage our readers and clients to acknowledge the MiCA regulation and to rely on our legal experts before making a move. Other jurisdictions outside of the EU may be worth your consideration.
Crypto License in Anjouan
on request-
Very fast licensing process
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Low requirements
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Recognized by banking institutions
Crypto License in Argentina
on request-
Simple framework
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Low price
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Fast VASP set-up
Crypto License in Bahrain
on request-
MENA jurisdiction
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Business friendly
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Straightforward rulebook
Crypto License in British Virgin Islands
on request-
0% Taxes
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Fast set-up
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Easy to start
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Top economy
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Secure and trusted
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Compoundable license
Crypto License in Costa Rica
from 2,350 USD-
Cheapeast crypto license
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Fast and easy incorporation
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Perfect for crypto gaming
About the CASP (MiCA) License in Latvia
The minimum own funds requirement depends on the class of CASP authorization. Class 1 (advisory and execution services) requires EUR 50,000. Class 2 (custody and exchange services) requires EUR 125,000. Class 3 (trading platform operation) requires EUR 150,000. Own funds must be fully paid-up at the time of application submission.
The statutory review period runs to approximately 65 working days following Latvijas Banka’s confirmation that the application package is complete: 25 days for the completeness check and 40 days for the substantive review. Preparation of the application package typically requires 3 to 6 months, depending on the applicant’s starting position, corporate structure, and the readiness of compliance documentation.
The pre-MiCA Latvian VASP regime was a registration-based system with lighter governance, capital, and operational requirements. The MiCA CASP regime requires formal authorization, minimum own funds of EUR 50,000 to EUR 150,000 calibrated by activity class, demonstrable local substance, a qualified MLRO, and comprehensive AML/CFT and DORA-compliant ICT documentation. The VASP regime closed to new applicants on December 30, 2024.
Latvia applies a 0% corporate income tax rate on undistributed profits. Profits distributed as dividends are taxed at 20% at the point of distribution. This structure is designed to support reinvestment by growth-stage businesses and is a material factor in the jurisdiction’s competitiveness relative to Lithuania and Poland, both of which apply standard corporate income tax rates to annual profits.
Latvian VASPs must file a complete CASP application with Latvijas Banka by June 30, 2025, to continue operating lawfully during the review period under MiCA’s transitional provisions. Companies that have not filed by this date lose the right to operate during the review and face regulatory exposure from the day of the missed deadline.
The non-refundable application review fee is EUR 2,500, payable at the time of formal submission to Latvijas Banka. The annual supervision fee after authorization is 0.6% of gross revenues, with a minimum of EUR 3,000 per year. This supervision fee structure is among the lowest in the EU for licensed financial entities.
The first step to get a CASP license in Latvia is to work with a reliable legal partner
Having helped numerous clients navigate the regulatory landscape in Europe, LegalBison’s team knows the ins and outs of the Latvijas Banka procedures and local compliance requirements. We handle the heavy lifting, from drafting your business plan to liaising with the regulator, so you can focus on growing your business. Contact our experts today to start your journey toward obtaining a MiCA-compliant crypto license in Latvia.
Experts in fintech and crypto licensing worldwide.
Kirill Gussev advises crypto and digital asset companies on VASP and CASP licensing, MiCA authorization, and international corporate structuring at LegalBison.