Latvia operates under the EU's MiCA regulation fully enforced since December 2024, providing a clear legal framework for crypto activities. The Latvian Bank oversees licensing and supervision of financial and crypto-related services, issuing licenses to payment institutions and investment brokers.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | europe |
| Currency | EUR |
| Adoption Rank | #45 |
| Capital Gains (Personal) | 20% capital gains tax |
| Capital Gains (Corporate) | 20% corporate income tax applies to crypto gains |
| VAT on Crypto | No |
| Staking Tax | Taxed as income at personal or corporate rates |
| Airdrop Tax | Taxed as income at 20% |
Crypto gains are subject to standard personal and corporate income tax rates of 20%. VAT does not apply to crypto transactions.
| Required | Yes |
| Regulator | Latvijas Banka |
| Framework | Markets in Crypto-Assets Regulation (MiCA) |
| Ease | medium |
| Cost (USD) | $15,000 - $80,000 |
Licenses are issued by Latvijas Banka under EU MiCA framework; licensing process is standardized but requires compliance with EU AML and operational standards.
| Name | Year | Status | Scope |
| Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA) | 2023 | Active | supranational |
| Establishes a comprehensive EU framework for crypto-asset service providers (CASPs), stablecoin issuers (ART/EMT), and trading platforms; prohibits market abuse in crypto-assets; full application from 30 December 2024. | |||
| Regulation (EU) 2023/1113 on Transfer of Funds and Certain Crypto-Assets (TFR) | 2023 | Active | supranational |
| Extends FATF Travel Rule to crypto-asset transfers; requires CASPs to collect and transmit originator/beneficiary information for all transfers, removing the EUR 1000 threshold; applies from 30 December 2024. | |||
| Council Directive (EU) 2023/2226 (DAC8) | 2023 | Active | supranational |
| Amends Directive 2011/16/EU to require mandatory automatic exchange of information on crypto-asset transactions held by EU tax residents; CASPs must report to national tax authorities from 1 January 2026. | |||
| Regulation (EU) 2022/2554 on Digital Operational Resilience for the Financial Sector (DORA) | 2022 | Active | supranational |
| Mandates ICT risk management, incident reporting, third-party provider oversight, and digital operational resilience testing for financial entities including CASPs covered by MiCA; applies from 17 January 2025. | |||
| Directive (EU) 2018/843 (5th Anti-Money Laundering Directive) | 2018 | Active | supranational |
| First EU directive to bring crypto-asset exchange services and custodian wallet providers within AML/CFT scope; introduced KYC obligations and registration requirements for Virtual Asset Service Providers. | |||
| Directive (EU) 2018/1673 on Combating Money Laundering by Criminal Law (6AMLD) | 2018 | Active | supranational |
| Harmonises criminal-law definitions and penalties for money laundering across EU member states; establishes minimum custodial sentences and corporate liability rules applicable to crypto-related ML offences. | |||
| Regulation (EU) 2024/1624 on Anti-Money Laundering Requirements (AML Regulation) | 2024 | Active | supranational |
| Replaces 5AMLD/6AMLD with a single AML Regulation directly applicable in all member states; tightens KYC/CDD requirements for CASPs and sets EUR 1000 cash-equivalent threshold for crypto transactions; phased application 2027. | |||
| Commission Delegated Regulation (EU) 2024/2795 supplementing MiCA | 2024 | Active | supranational |
| MiCA Level 2 delegated act setting regulatory technical standards on information requirements and procedures for competent authority notifications under MiCA; part of the MiCA implementation package applicable from December 2024. | |||
FKTK has focused on AML compliance and issued warnings about unauthorized crypto platforms.
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | compliant |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: regulated
DeFi activities fall under the EU MiCA regulation and are subject to AML and licensing requirements if operating as VASPs.
Status: regulated
Stablecoins are regulated under MiCA with specific requirements for issuance and operation.
Status: no_rules
No specific NFT regulation
| Legal | Yes |
| Electricity Cost | $0.15/kWh |
| Renewable Energy | 30% |
| Infrastructure | good |
Mining is legal with moderate electricity costs and decent infrastructure; renewable energy share is 30%. Cooling costs are moderate due to temperate climate.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 59/100 |
| Banking Access | open |
| Sanctions Program Active | Yes |
Risk Factors
Latvia is a stable EU member with good internet freedom and banking access for crypto firms. No international sanctions apply. Corruption is moderate with CPI around 59.
Recent Political Events
Latvia operates under the EU's MiCA regulation fully enforced since December 2024, providing a clear legal framework for crypto activities. The Latvian Bank oversees licensing and supervision of financial and crypto-related services, issuing licenses to payment institutions and investment brokers.
Latvia is classified by FATF as: compliant.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-17 · Data source: Soken Crypto Legal Map
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