Latvia’s central bank opens pre-licensing consultations to crypto companies #CryptoMarketMoves

Latvia’s central bank is taking proactive steps to align with the EU’s upcoming crypto regulations by offering free pre-licensing consultations for crypto-asset service providers.

The European Union’s landmark crypto regulation, the Markets in Crypto-Assets (MiCA) Regulation, is starting to be implemented in phases throughout the region, and local businesses are responding. 

In Latvia, the central bank announced it would offer pre-licensing consultations for any local crypto asset service providers (CASPs) seeking to gain a MiCA-compliant license in the country. 

Navigating MiCA #MiCARegulation

From January 2025, the bank will be in charge of accepting applications and issuing licenses for CASPs in the country. In the meantime, it said it is helping to prepare companies for the process with free pre-licensing consultations. 

Experts from the central bank will offer companies guidance on the regulations applicable to the company, all required documents and an initial assessment of each company’s level of compliance. 

Reinis Znotiņš, executive director of the Latvian Blockchain Association, said the association is “committed” to supporting local CASPs as they navigate the licensing process. 

“Our goal is to make this transition as smooth as possible, ensuring companies can leverage the full potential of the Latvian market while complying with the new MiCA framework.”

The central bank’s announcement said there are no limits to the number of consultations or meetings companies can request before filing their licensing application. 

Latvia’s crypto market

Latvia’s invitation for pre-licensing consultations is a preparatory measure to ensure that companies are ready to comply with MiCA when it comes into force. This proactive stance allows Latvia to align with MiCA’s requirements and position itself as an attractive location for crypto-asset service providers within the EU.