Interested in getting a crypto license in Latvia? We advise you to discuss this subject with one of our specialists in company incorporation in Latvia. We help international and local entrepreneurs register a company in the crypto field by managing the procedures. This article provides information about the Virtual Asset Service Provider (VASP) license in Latvia and the way the business can be incorporated.
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Who supervises the cryptocurrencies in Latvia?
The Bank of Latvia is the competent supervisory body for cryptocurrency companies established in this country. The recent law changes mention that the Bank of Latvia can issue operating permits and licenses to crypto business owners. As such, the legal framework has been enforced for better supervision of cryptocurrency transfers, public offerings, issuance of virtual currency, etc.
Requirements for getting crypto licenses in Latvia
You are required to obtain a crypto license in Latvia to set up and operate a business in this sector. The procedure to be followed is greatly influenced by the jurisdiction of the Latvia state. However, there is usually a set of universal rules that must be completed in all the baltic states:
- establishing party ID verification;
- full compliance with anti-money laundering legislation and procedures;
- collaboration with a bank or financial institution to set up a fiat currency exchange.
How to apply for a Virtual Asset Service Provider (VASP) license in Latvia
Application for a Virtual Asset Service Provider (VASP) license in Latvia is made with the Bank of Latvia, with respect to the Markets Crypto Assets Regulation and other EU regulations. Even if the Financial and Capital Market Commission is involved in this process and more precisely regulates the financial sector, the central bank is responsible for issuing a Virtual Asset Service Provider (VASP) license in Latvia. In this sense, those who want to obtain a crypto license in Latvia must first register with the Latvian Central Bank in the first place and provide transparent and complete information about future operations and activities. Here are the main steps for obtaining a crypto license in Latvia:
- Opening a company in Latvia is the first step to be taken in applying for a Virtual Asset Service Provider (VASP) license in Latvia. EUR 2,800 is the minimum paid-up capital that can be deposited in a Latvian bank account.
- The business model and relevant documents must then be prepared and presented to the authorities, with an initial assessment with the Central Bank of Latvia.
- There will be a preliminary review after the registration of the documents, and if it is still needed, other information about the cryptocurrency company and future activities will be requested.
- If the application has gone through final correction and the documents are accepted, the bank can issue the necessary license. Thus, the crypto license is registered, issued, and can be used.
In this case, we specify that the following documents are necessary to obtain a crypto license in Latvia:
- Articles of Association,
- anti-money laundering policies and implementation,
- a confirmation letter or clear criminal record of company directors,
- copies of passports of shareholders and managers, in a notarized form.
Please feel free to discuss more with our specialists in company formation in Latvia if you want to obtain a crypto license. We help local entrepreneurs open a cryptocurrency company in Latvia by managing the formalities.
Verification requirements in Latvia for cryptocurrency
In Latvia, you may not be able to acquire or trade cryptocurrencies until the verification process is completed. A copy of your driver’s license or passport, as well as a current photo, may be requested to verify that your appearance matches the KYC (Know Your Customer) documentation you submit to your Latvian crypto license application. Our company incorporation agents can help you with completing your identity verification to save you from unnecessary delays.
The fact that Latvia’s information technology sector is so highly established is a perk of opening a cryptocurrency company here. Data-intensive enterprises may consider setting up a company in Latvia due to its well-developed digital architecture and high capacity.
Statistics on cryptocurrency in Latvia
Here are some interesting facts about the cryptocurrency sector in Latvia if you want to activate in this sector:
- It is estimated around USD 1.8 million in revenues for the cryptocurrency market in Latvia by the end of 2024.
- Around USD 20.6 is the average revenue per crypto user in Latvia in 2024.
- In Latvia, the number of cryptocurrency users is expected to reach and even exceed 88,000 by 2025.
In addition to assistance in getting a crypto license in Latvia, our agents can offer you other services. For example, you can opt for the services of our accountants in Latvia. Please feel free to contact our team if you want to start a company in Latvia.