Latvia MiCA CASP License 2026 — Latvijas Banka Authorization, Requirements & Complete Setup Guide

Latvia has established itself as one of the European Union's most accessible and commercially attractive jurisdictions for MiCA CASP (Crypto-Asset Service Provider) authorization. Latvijas Banka — the Bank of Latvia and the national competent authority under Regulation (EU) 2023/1114 — has granted 8 CASP authorizations to date, including internationally recognized names such as Backpack EU (Trek Technologies SIA), BlockBen SIA, Nexdesk SIA, AS TWINO Investments, Neverless SIA, SIA Paybis Europe, SIA GR8 PAY, and SIA AlphaRoute. A single Latvia MiCA CASP authorization passports across all 30 EEA member states — 27 EU countries plus Iceland, Liechtenstein, and Norway — without requiring separate national applications in each jurisdiction.

The application fee of €2,500 is the lowest of any EU member state. Pre-licensing consultations with Latvijas Banka are free, unlimited, and conducted in English. Corporate tax on retained profits: 0%. Latvijas Banka has issued 13 financial market participant licenses in 2026 alone — demonstrating an active, not theoretical, licensing pipeline. Zitadelle AG provides the complete Latvia MiCA CASP setup — from Latvian SIA incorporation through Latvijas Banka application submission, local staff placement via HRFinEase, office sourcing, and bank account opening — as a single coordinated engagement from our team.

Why Latvia for Your MiCA CASP License

1. Lowest Application Fee in the EU

The Latvijas Banka MiCA CASP application fee is €2,500 — confirmed as the lowest examination fee in the European Union. Compare this to Lithuania (higher), Germany (up to €20,000+), or Malta (variable but substantially more). The annual supervision fee is 0.6% of gross revenue with a minimum floor of €3,000 — among the most competitive ongoing cost structures of any EU NCA.

2. Free, Unlimited Pre-Licensing Consultations

Latvijas Banka provides approximately 100 free pre-licensing consultations annually. During the pre-licensing stage, documents may be submitted in English — a significant practical advantage for international operators who do not have Latvian language capability in-house. 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 service categories. Prospective applicants do not need to have a legally established Latvian entity before beginning pre-licensing consultations — allowing model validation before committing to incorporation costs.

3. 0% Corporate Tax on Retained Profits

Latvia operates a deferred CIT model: 0% corporate income tax on retained (undistributed) profits. Tax of 20% applies only when profits are distributed as dividends. For growth-stage crypto businesses that reinvest operating capital into product, technology, and team expansion, the Latvian model provides genuine tax deferral that Lithuania (17% flat CIT) and Cyprus (15% CIT) cannot match.

4. 30-Country EEA Passporting from a Single Authorization

A Latvijas Banka CASP authorization is a single license that covers the entire European Economic Area — 27 EU member states plus Iceland, Liechtenstein, and Norway — under MiCA's cross-border notification regime. No separate national applications, no per-country regulatory relationships, no duplicated compliance costs. One authorization. One regulator. The entire EEA single market.

5. Active, Proven Licensing Pipeline

Latvia has 8 confirmed CASP authorizations — not a theoretical framework. The Latvijas Banka approach is partnership-oriented: the regulator actively supports applicants through the process with detailed licensing guides, asset classification playbooks, and substantive pre-licensing feedback rather than passive document review. Latvijas Banka has publicly stated its intention to make Latvia the most competitive CASP licensing jurisdiction in the EU.

6. Single Regulator for All Financial Services

Since 1 January 2023, Latvijas Banka has been the single supervisor for all financial entities in Latvia — banks, EMIs, PIs, investment firms, and CASPs. One regulatory relationship covers everything. For groups that also need a Latvian EMI or PI license alongside their CASP authorization, this creates a uniquely integrated regulatory structure available in no other Baltic jurisdiction.

Latvia EMI License →

Who Has Already Received a Latvia MiCA CASP License

Latvijas Banka has granted CASP authorizations to the following entities — all confirmed on the Latvijas Banka public register:

The consistent profile across Latvia's licensed CASPs: internationally-oriented crypto platforms seeking regulated EU market access, exchange and custody operators, and B2B digital asset service providers. Latvijas Banka is not licensing speculative projects — it is licensing demonstrated businesses with real governance and operational infrastructure.

The Three MiCA CASP License Classes

Latvia implements MiCA's three-tier capital structure exactly as defined in Regulation (EU) 2023/1114:

Capital must be held in qualifying own funds: paid-up share capital, share premium, or retained earnings. Crypto-assets held on the balance sheet do not count as regulatory capital under MiCA — regardless of their market value.

Most exchange and custody operators apply for Class 2 (€125,000) or Class 3 (€150,000). Advisory-only firms and introducing brokers typically qualify for Class 1 (€50,000).

The Ten MiCA Regulated Services

A CASP authorization in Latvia covers one or more of the following ten regulated crypto-asset services:

1. Custody and administration of crypto-assets on behalf of clients (Class 2)
2. Operation of a crypto-asset trading platform (Class 3)
3. Exchange of crypto-assets for fiat currency (Class 2)
4. Exchange of crypto-assets for other crypto-assets (Class 2)
5. Execution of orders for crypto-assets on behalf of clients (Class 1)
6. Placing of crypto-assets (Class 1)
7. Reception and transmission of orders for crypto-assets on behalf of clients (Class 1)
8. Providing advice on crypto-assets (Class 1)
9. Providing portfolio management of crypto-assets (Class 1)
10. Providing transfer services for crypto-assets on behalf of clients (Class 1)

Each service for which authorization is sought must be explicitly documented in the application. Latvijas Banka assesses the governance, technology, and compliance framework for each service individually — a comprehensive custody offering requires more substantive documentation than an advisory-only application.

Latvia MiCA CASP Requirements — Full Breakdown

Corporate Structure

The applicant must be a legal entity with a registered office and place of management in Latvia. A Latvian SIA (Sabiedrība ar ierobežotu atbildību — private limited company) is the standard corporate vehicle. The SIA must be incorporated before formal application submission, though Latvijas Banka's pre-licensing consultations can begin before incorporation.

Minimum authorized capital for a Latvian SIA: €2,800. The CASP-specific capital requirement (€50,000–€150,000) is separate from and in addition to the minimum SIA authorized capital.

Directors and Management

At least several directors must be appointed (MiCA does not specify a maximum). At least one director must be an EU resident. All directors and key function holders must satisfy Latvijas Banka's fit-and-proper requirements: solid professional reputation, necessary skills, and relevant experience in financial services or the crypto-asset sector.

Latvijas Banka actively verifies the competence and professional standards of individuals providing crypto-asset services — ensuring parity with traditional financial services regulation. Management quality is one of the most scrutinized elements of the CASP application review.

Physical Office in Latvia

A registered office and genuine place of business in Latvia is mandatory. Latvijas Banka does not accept virtual offices or mailbox addresses as satisfying the substance requirement. The CASP must carry out at least part of its crypto-asset services from its Latvian registered office.

Zitadelle AG sources Latvian office space for CASP applicants — including serviced offices in Riga's primary business districts suitable for Latvijas Banka substance requirements.

Local Staff

CASP applicants must demonstrate adequate human resources proportionate to the scope and complexity of their intended services. This includes at minimum:

• A qualified MLRO (Money Laundering Reporting Officer) with relevant AML/CFT experience and demonstrated competence
• A Compliance Officer with financial services regulatory experience
• IT staff with relevant technical competence for the technology infrastructure supporting the authorized services

Zitadelle AG recruits qualified, Latvijas Banka-approvable staff for all CASP applicants through HRFinEase — our dedicated fintech recruitment platform. This includes MLRO placement, compliance officer sourcing, and technical personnel recruitment — all with verified credentials and prior regulatory experience matching Latvijas Banka's specific requirements.

HRFinEase — Fintech Recruitment →

AML/CFT Framework

A comprehensive AML/CFT compliance programme aligned with FATF Recommendation 16, the EU's AMLD6, and Latvijas Banka's specific CASP supervision guidelines:

• Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) procedures
• Risk-based approach — client risk assessment, business risk assessment (BRA)
• Suspicious Transaction Reporting (STR) procedures to the Latvian FIU (FKTK)
• Travel Rule implementation (IVMS101 standard) for crypto-asset transfers
• Self-hosted wallet procedures and risk framework
• Sanctions and PEP screening
• Ongoing transaction monitoring

The MLRO must be named in the application and individually assessed for fit-and-proper compliance.

DORA ICT Risk Framework

DORA (Regulation EU 2022/2554) applies to all Latvian MiCA CASPs from authorization date. Latvijas Banka requires DORA-aligned ICT documentation at application stage:

• ICT risk management framework (board-approved)
• Incident classification criteria and 4-hour notification procedure for major ICT incidents
• Third-party ICT provider register
• Business continuity and disaster recovery plan
• Annual resilience testing schedule

Capital Evidence

The full authorized capital (€50,000–€150,000 depending on class) must be paid-up and evidenced at application submission. Latvijas Banka may require additional capital above the class minimum based on the applicant's projected activity volumes, risk profile, and the complexity of services applied for.

Proof of source of funds for all qualifying shareholders (10%+) is a mandatory application document — capital of unclear origin is a primary rejection ground.

The Latvia MiCA Application Process

Stage 1 — Pre-Licensing Consultation (Free, English)

Latvijas Banka provides free, unlimited pre-licensing consultations with its CASP licensing team. Documents may be submitted in English at this stage. The company does not need to be legally established before starting consultations. During pre-licensing, Latvijas Banka will:

• Review the proposed business model for MiCA scope classification
• Identify the correct CASP service class and corresponding capital requirement
• Provide feedback on governance structure and substance requirements
• Flag any structural issues before formal application costs are incurred

This stage is the single most valuable risk-reduction step in the Latvia CASP application process. Operators who skip pre-licensing and submit directly typically receive more queries, face longer review timelines, and have higher rates of application deficiency. Zitadelle AG attends pre-licensing consultations with or on behalf of clients — bringing complete business plan and governance documentation to extract maximum regulatory feedback before formal submission.

Stage 2 — Application Preparation

The formal CASP application package includes:

• Application form (Latvijas Banka standard form)
• Business plan — minimum 2-year financial projections, target market analysis, service description, technology architecture, risk management framework
• Constitutional documents — SIA charter, shareholder register, UBO declarations
• Governance documentation — management structure, key function descriptions, board composition, decision-making procedures
• AML/CFT compliance programme — full policy suite meeting FATF and AMLD6 standards
• DORA ICT risk management framework
• Capital evidence — paid-up share capital confirmation from Latvian credit institution
• Source of funds documentation for all qualifying shareholders
• Fit-and-proper documentation — CVs, professional references, criminal background confirmation, regulatory history for all directors and key persons
• Draft material contracts — custody agreements, client terms, technology provider contracts

Zitadelle AG prepares the complete application package — including business plan drafting, AML/CFT policy suite, DORA framework, governance documentation, and all supporting materials — as standard.

Stage 3 — Submission to Latvijas Banka

Application submitted directly to Latvijas Banka via the regulator's submission portal. Application fee: €2,500 at submission (non-refundable).

Stage 4 — Completeness Check (25 Working Days)

Latvijas Banka conducts a 25-working-day completeness check from the date of submission. The regulator verifies that all required documents are present and in the required format. Incomplete applications are returned with a list of deficiencies — the clock restarts upon resubmission. Well-prepared applications with complete documentation from day one pass this stage without return.

Stage 5 — Substantive Assessment (40 Working Days)

A 40-working-day substantive review covers:

• Fit-and-proper assessment of all directors and key function holders
• Business model viability and MiCA scope compliance
• Governance quality and adequacy of internal controls
• AML/CFT programme robustness
• ICT resilience and DORA compliance
• Capital adequacy and source-of-funds

The review period may be extended if the information provided is insufficient to take a decision. Latvijas Banka may issue queries during the substantive review — timely, complete responses are essential to keeping the timeline on track.

Stage 6 — Authorization and EEA Passporting

Upon authorization, the entity is added to the ESMA CASP register — the European-level public register of all authorized CASPs. From this date, the entity can notify other EEA member states of its intention to provide services cross-border under the MiCA passporting regime, without separate national applications.

Corporate Banking for Latvia MiCA CASPs

Banking is a critical operational step after CASP authorization. Latvijas Banka's single-supervisor model — covering EMIs, PIs, and CASPs — improves banking access compared to jurisdictions where separate regulators create friction between the CASP and payment infrastructure.

Zitadelle AG provides banking introductions for all Latvia CASP clients — including Latvian bank KYC dossier preparation, EU EMI account openings, and coordination of MiCA Article 70 safeguarding arrangements.

Latvia vs Lithuania vs Cyprus — Where to Apply for Your MiCA CASP License

Choose Latvia when:

• Minimizing regulatory cost (lowest fee, 0% CIT on retained earnings) is a primary objective
• You want a single Latvijas Banka relationship for CASP + EMI/PI simultaneously
• Your group has no existing EU regulated entity (Cyprus CIF Article 60 is irrelevant)
• You want the Innovation Hub and Sandbox support for a novel business model
• Tax deferral on reinvested profits matters more than a lower flat CIT rate

Choose Lithuania when:

• You already have a Lithuanian EMI or are applying for one concurrently and want CENTROlink direct SEPA access alongside the CASP
• Speed to EMI+CASP combined structure is more important than minimum cost

Choose Cyprus when:

• You already hold a CySEC CIF and want to add crypto services via the MiCA Article 60 simplified notification
• 12.5–15% CIT with IP Box optimization applies to your structure
• Direct CySEC access and English common law jurisdiction are priorities

Zitadelle AG — Complete Latvia MiCA CASP Setup Service

Zitadelle AG provides the complete end-to-end Latvia MiCA CASP setup — not just application preparation, but every operational component required to be licensed and functioning in Latvia.

Latvian SIA Company Formation

Incorporation of a Latvian SIA with CASP-appropriate corporate objects clause, shareholder register, UBO registration, and all notarized formation documents. Timeline: 3–7 business days. 100% remote — no visit to Latvia required. Tax registration, VAT registration (where applicable), and Latvijas Banka notification of intended CASP application all coordinated.

Pre-Licensing Consultation Attendance

Zitadelle AG prepares the pre-licensing submission package and attends Latvijas Banka consultations with clients. We extract maximum regulatory feedback from the free consultation process — reducing the probability of application deficiency notices and shortening the overall timeline.

Complete Application Package Preparation

Business plan (2-year projections, target market analysis, technology architecture, risk management framework), AML/CFT policy suite (CDD, EDD, TM, STR, Travel Rule, sanctions, PEP, BRA), DORA ICT risk management framework, governance documentation, fit-and-proper declarations, source-of-funds analysis, and all supporting materials prepared to Latvijas Banka's published application standards.

Latvijas Banka Submission and Communication Management

Formal application submission including the €2,500 fee. All Latvijas Banka queries during the completeness check and substantive review handled by Zitadelle AG — responses drafted, reviewed, and submitted within query response timelines.

Local Staff Recruitment via HRFinEase

Named MLRO, Compliance Officer, and key technical staff placed through HRFinEase — Zitadelle AG's dedicated fintech recruitment platform. All candidates pre-screened for Latvijas Banka fit-and-proper compliance, including verified regulatory experience, professional references, and criminal background confirmation. Staff are named in the application package with complete documentation.

HRFinEase — Fintech Recruitment →

Office Sourcing in Latvia

Physical Latvian office introduction — serviced office or dedicated space in Riga's prime business districts, meeting Latvijas Banka's substance requirements. Lease arrangements coordinated with local property partners. Office address registered with the Latvian Commercial Register and used as the CASP's official regulatory address.

Corporate Banking and Account Opening

Latvian bank introductions — KYC dossier preparation, application submission, and relationship management for Latvian credit institution accounts. EU EMI account introductions for immediate operational banking while the Latvian bank application processes. MiCA Article 70 safeguarding account arrangements coordinated with banking partners.

Ongoing Compliance After Authorization

Post-authorization compliance management:

• Quarterly regulatory reports to Latvijas Banka (client numbers, transaction volumes, key indicators)
• Annual AML/CFT programme review and update
• DORA annual ICT risk framework review
• Travel Rule compliance programme maintenance
• EEA cross-border notification management for passporting to other EU states
• Latvijas Banka regulatory correspondence

Related Reading

• Latvia EMI License →
• EU EMI License Overview →
• MiCA CASP License — All Jurisdictions →
• Cyprus CySEC CIF + MiCA Article 60 →
• DORA Compliance Advisory →
• Outsourced MLRO Service →
• Stablecoin Issuer License →
• How to Start a VASP/CASP Company 2026 →