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CASP Crypto License in Latvia
Latvia, part of the European Union and the eurozone, is aligning its cryptocurrency regulations with the Markets in Crypto-Assets Regulation (MiCA) framework. From 30 December 2024, all new crypto businesses in Latvia must apply for a Crypto-Asset Service Provider (CASP) licence. Companies already operating under the previous VASP model must file their CASP applications by 30 June 2025 to benefit from transitional provisions and continue operations legally.
Why choose Latvia?
• Full EU market access – a Latvian CASP licence allows you to operate across all EU and EEA countries
• Straightforward incorporation – company registration and bank account opening can be completed remotely
• Regulatory predictability – oversight is shared between the Financial and Capital Market Commission (FKTK) and the Financial Intelligence Unit (FIU Latvia)
• Tech-driven economy – Latvia actively supports fintech, blockchain, and e-government services
Activities that require a CASP licence
Businesses providing any of the following services in Latvia or the EU must obtain a CASP licence:
• Custodial wallet and crypto asset safekeeping
• Crypto-to-fiat or crypto-to-crypto exchange
• Order execution and transmission
• Operation of crypto trading platforms
• Portfolio management and investment advice
• Crypto lending, placement, or distribution of crypto-assets
Key licensing requirements
• Latvian company registration – must establish a legal entity (SIA) with local office address
• Capital thresholds –
• €50,000 for advice or order transmission
• €125,000 for exchange and custody
• €150,000+ for trading platforms and more complex services
• Qualified management – directors and ultimate beneficial owners must have clean criminal records and relevant professional experience
• AML/CFT program – tailored policies in line with Latvian FIU requirements, including client onboarding, transaction monitoring, and risk assessments
• Compliance function – appointment of an internal or outsourced AML Compliance Officer (MLRO) based in the EU
• Beneficial ownership disclosure – all UBOs must be registered with the Latvian UBO registry
Timeline and transition
• MiCA effective: 30 December 2024
• Transitional deadline: 30 June 2025 for existing VASPs
• Licensing duration: 3–6 months, depending on preparation and regulator response time
• Remote setup: Possible with Demire Inc’s assistance
Ongoing obligations
• Maintain capital buffers appropriate to your CASP class
• Submit annual reports, audit results, and compliance statements
• File suspicious transaction reports (STRs) with the FIU Latvia
• Keep transaction and identity records for at least five years
How Demire Inc supports your launch in Latvia
• Full legal entity setup (SIA) and office address registration
• Preparation of CASP application documents, including AML/CFT, governance, and IT policies
• PESEL and eID setup (if required)
• Registration of AML contact person and compliance function
• Bank account assistance and support with local financial institutions
• Post-licensing support including reporting, audit, and regulator correspondence
Start your Latvian CASP licence journey today. Demire Inc ensures smooth setup, full compliance, and fast access to the EU crypto market from one of the most agile regulatory environments in Europe.
