---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "europe", "moneyval", "legal"]
aliases: ["LV", "LVA", "Latvija"]
created: 2026-04-13
updated: 2025-12-01
compile_into: ["[[country--latvia]]"]
sources:
  - name: "Bank of Latvia / FKTK"
    url: "https://www.bank.lv"
    type: "official"
---

# 🇱🇻 [[country--latvia|Latvia]] (LV) — Crypto Regulation

> 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.

## Overview

| Field | Value |
|-------|-------|
| Status | Legal |
| Risk Score | 33/100 (Moderate Risk) |
| Enforcement Level | Low |
| Region | [[domain--europe|europe]] |
| Currency | [[entity--eur|EUR]] |
| Adoption Rank | #45 |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | 20% personal income tax on crypto gains |
| Capital Gains (Corporate) | 20% on distributed profits (0% on retained) |
| VAT on Crypto | No |
| Mining Tax | Taxed as business income |
| 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.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--latvijas-banka|Latvijas Banka]] |
| Framework | [[concept--mica|MiCA]] (EU Regulation 2023/1114, full enforcement from 2024-12-30) |
| Ease | medium |
| Cost | $15,000 - $80,000 |
| Timeline | 4-10 months |

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.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | fsrb_only |

## DeFi

**Status:** Unclear

No specific DeFi regulation

## Stablecoins

**Status:** no_rules

No specific stablecoin framework

## NFTs

**Status:** no_rules

No specific NFT regulation

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.15/kWh |
| Renewable Energy | 30% |
| Climate | temperate |
| Infrastructure | good |

Mining is legal with moderate electricity costs and a decent share of renewables. Infrastructure supports mining operations adequately.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 59/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | moderate |

## Enforcement

FKTK has focused on AML compliance and issued warnings about unauthorized crypto platforms.

## CBDC Status: unknown

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [Bank of Latvia / FKTK](https://www.bank.lv)