Cryptocurrency activities are legal in Latvia with regulatory oversight by Latvijas Banka. The country maintains a financial market participant registry and issues licenses for financial services, including payment institutions.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | europe |
| Currency | EUR |
| Adoption Rank | #45 |
| Capital Gains (Personal) | 25.5% personal income tax on capital gains from crypto-asset disposal (virtual currency classified as capital asset). Additional 3% applies to annual income portions exceeding EUR 200,000. Non-residents exempt from capital gains tax on publicly traded crypto-asset disposals 2025-01-01 to 2027-12-31. |
| Capital Gains (Corporate) | 20% on distributed profits (0% on retained) |
| VAT on Crypto | No |
| Staking Tax | Taxed as capital income at 20% |
| Airdrop Tax | Taxed as income at 20% |
Latvia taxes individual crypto gains at 20% personal income tax rate. Like Estonia, corporate tax applies only to distributed profits at 20%, making it attractive for companies reinvesting earnings.
| Required | Yes |
| Regulator | Latvijas Banka |
| Framework | MiCA (EU Regulation 2023/1114, full enforcement from 2024-12-30) |
| Ease | medium |
| Cost (USD) | $15,000 - $80,000 |
Latvia applies MiCA directly as EU member state. FKTK was merged into Latvijas Banka in January 2023. CASPs (Crypto-Asset Service Providers) require authorisation from Latvijas Banka under MiCA from 30 December 2024. Previous national VASP registration regime under AML law was transitional until MiCA full enforcement.
FKTK has focused on AML compliance and issued warnings about unauthorized crypto platforms.
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | regular_follow_up |
| FATF Body | MONEYVAL |
| Suspicious-Activity Reporting | Yes |
Status: Unclear
No specific DeFi regulation
Status: mica_framework
Latvia applies MiCA's stablecoin framework directly as an EU member state. E-money tokens (EMTs, referencing a single fiat currency) require authorization as electronic money institution under PSD2/EMD2 or CASP Class 2+. Asset-referenced tokens (ARTs, referencing multiple assets or commodities) require separate ART issuer authorization from Latvijas Banka. ART issuers must maintain segregated reserves equal to outstanding token value; significant EMTs/ARTs face additional ECB oversight. ART/EMT provisions of MiCA were activated EU-wide on 30 June 2024.
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 a decent share of renewables. Infrastructure supports mining operations adequately.
| Stability | moderate |
| Sanctions | No |
| Corruption Index | 60/100 |
| Banking Access | moderate |
Risk Factors
Latvia is an EU and NATO member since 2004. No international sanctions. CPI 2025: 60/100 (rank 37/182, slightly improved from 59 in 2024 but still worst among Baltics). Political stability assessment downgraded from 'stable' to 'moderate' due to PM resignation May 2026 over drone incursion and upcoming elections. Active participant in Russia sanctions coordination.
Cryptocurrency activities are legal in Latvia with regulatory oversight by Latvijas Banka. The country maintains a financial market participant registry and issues licenses for financial services, including payment institutions.
Latvia is classified by FATF as: regular_follow_up.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map
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