Latvia Crypto License — CASP Registration Guide 2026

To obtain a Latvia CASP authorization, companies must satisfy the FKTK's requirements under MiCA Regulation (EU) 2023/1114 and Latvia's national implementing legislation. The FKTK assesses applications according to MiCA's harmonized authorization criteria, with Latvia-specific corporate and AML law requirements layered on top. The following are the core requirements for FKTK CASP authorization:

MiCA Article 67 establishes three minimum own funds tiers based on CASP service types authorized. These are harmonized across all EU member states — the FKTK applies identical MiCA capital requirements. Capital must be maintained at all times, not only at authorization stage:

Latvia's corporate tax structure is particularly attractive for growth-stage crypto businesses. The 20% corporate income tax rate is deferred — it applies only to distributed profits, not retained earnings. Companies that reinvest profits into their Latvian operations effectively pay 0% corporate tax on retained earnings, similar to Estonia's territorial approach. This makes Latvia one of the most growth-friendly jurisdictions in the EU from a tax perspective.

The Latvian SIA has a statutory minimum share capital of €2,800, separate from the MiCA own funds requirement. The MiCA capital (€50,000–€150,000) must be fully paid-up and demonstrated to the FKTK at authorization, then maintained on an ongoing basis throughout the licensing period.

Latvia competes directly with Estonia and Lithuania for Baltic CASP licensing business. Each jurisdiction has distinct regulatory characteristics, cost profiles, and strategic advantages:

* Latvia and Estonia apply 20% corporate tax only on distributed profits — retained earnings are not taxed. Table reflects government fees, statutory rates, and approximate timelines. Professional service fees vary by complexity.

Latvia's distinct advantage is its position as a bridge between the Estonian digital-first approach and the Lithuanian payment institution ecosystem. FKTK's VASP-era experience with crypto businesses means the regulator understands the industry — applicants with well-structured business models and robust compliance programs find the FKTK to be a cooperative and responsive counterparty.

A Latvia CASP license issued by the FKTK carries full MiCA EU passporting rights — a single FKTK authorization grants your company the right to provide crypto-asset services in all 27 EU member states under MiCA Article 65. This is the same passporting right as a German BaFin or Dutch DNB authorization, achieved through a Baltic NCA with significantly lower fees and a shorter timeline. Latvia's EU membership since 2004 ensures full integration into the EU supervisory architecture.

How Latvia CASP Passporting Works

• Notification to FKTK: To begin providing services in another EU member state, your Latvian SIA submits a passporting notification to the FKTK specifying the target country, service types, and intended start date.
• 10-working-day forwarding: The FKTK must forward the notification to the host NCA within 10 working days. You may commence services in the host state on the day of forwarding — without waiting for host NCA approval.
• ESMA register publication: All FKTK-authorized CASPs appear in ESMA's publicly searchable register, confirming authorization status for counterparties and clients across the EU.
• Baltic network advantage: Latvia's position between Lithuania and Estonia creates natural cross-border synergies — a Latvia-based CASP can efficiently serve the entire Baltic market and beyond through one FKTK authorization.

For companies targeting the Baltic and broader EU market, Latvia offers an underutilized but highly effective passporting route. Read our complete guide on EU passporting under MiCA for the full procedural framework. For comparison with neighboring Baltic jurisdictions, see our Lithuania CASP License and Estonia CASP License pages.