On 29 August 2024, the Bank of Latvia extended an invitation to crypto-asset service providers (CASPs) and consulting service providers to engage in pre-licensing consultations as they prepare to comply with the forthcoming European Union (EU) Markets in Crypto-Assets Regulation (MiCA). This new regulation, set to take effect on December 30, 2024, will introduce a unified regulatory framework across the EU for the crypto-asset industry. One of the key requirements under MiCA is that all crypto-asset service providers must obtain an operating permit to conduct their business within the EU.
Latvijas Banka, in preparation of the formal application process that begins in January 2025, is offering these pre-licensing consultations to help companies understand the regulatory requirements and prepare their applications. The aim of this initiative is to allow companies to gain a clear understanding of the regulatory requirements, the necessary documentation, and the compliance standards they must meet.
The consultations are part of a broader effort by the Latvijas Banka to support the crypto-asset industry during this transition to a more regulated environment. Latvijas Banka has also published comprehensive guides to assist entrepreneurs in understanding the application process for obtaining an operating permit. These guides offer detailed instructions on how to prepare and submit applications, the types of documents required, and the expected timelines for the Bank of Latvia’s review and decision-making process. The guides also include an overview of the classification of crypto-assets under MiCA, helping companies understand which assets fall under the new regulation and which are governed by other legislative frameworks.
The implementation of MiCA will standardise the regulatory environment for crypto-assets across the EU. For CASPs, obtaining an operating permit in Latvia will enable them to offer services throughout the EU, as per the cross-border operation notification mechanism embedded within MiCA. This notification mechanism ensures that once a company is licensed in one EU country, it can operate across all member states, thereby providing equal opportunities for service providers regardless of where they are initially licensed.
Latvijas Banka is hosting an informative webinar on 30 September, 2024, at 11:00 AM (Riga time) for CASPs and consulting service providers interested in learning about the licensing opportunities available in Latvia. This session will provide a comprehensive overview of the licensing process, including a detailed discussion on anti-money laundering (AML) requirements, supervisory expectations, and insights into the Digital Operational Resilience Act (DORA). The webinar will cover the benefits of participating in Latvia’s regulatory sandbox. The event is scheduled for two hours. Registration is open until September 27th .
