Latvia becomes a gateway to the EU fintech market under MiCA

Latvia has issued its first licences under the EU’s Markets in Crypto-Assets Regulation (MiCA), signalling its ambition to become one of Europe’s most business-friendly jurisdictions for regulated crypto-asset service providers (CASPs). At a press briefing in Riga, officials announced that BlockBen and Nexdesk are the first companies authorised by Bank of Latvia to offer crypto-asset services from Latvia to clients across the European Union.

The licences allow both firms to operate across all EU member states under MiCA’s passporting regime, positioning Latvia as a competitive entry point for global crypto and Web3 businesses seeking a regulated base inside the single market.

Clear signal that Latvia is open for regulated crypto business

Opening the briefing, Minister of Economics Viktors Valainis described the first MiCA licences as a strategic milestone for Latvia’s economy:

“The first MiCA licences in Latvia send a clear signal that we are ready to be part of this global market. Regulated crypto-asset services create new opportunities in the financial world beyond the traditional banking network – from modern B2B payment rails to entirely new financial technology solutions.”

This sector generates highly qualified jobs and high-value services exports. In financial and insurance services, average wages are around 40% higher than the national average, and virtually 100% of the sector’s output is export-oriented. Looking at our neighbour, Lithuania, where crypto companies have paid more than €80 million in taxes over the last four years, we see what is possible when a country backs innovation with an innovative regulatory framework. Latvia intends to build its own success story.

Viktor Bondar, CEO, BlockBen “We are excited and thankful that we were able to secure our MiCA license in Latvia, issued by Bank of Latvia.  We have been active on the market since early 2018 and I strongly believe our business model as a crypto asset issuer and launchpad will have plenty of opportunities for everyone involved and freshly joining. I am convinced Latvia can be a new fintech hub in the European Union and will create a huge multiplier effect on the local financial, tech and also on other sectors as well as in talent development,”

Strong pipeline: over 100 companies eye Latvia as MiCA home

According to the Bank of Latvia, five companies have already submitted MiCA licence applications, while another 12 are in pre-licensing consultations. This comes on top of significant international interest, with more than 100 companies from countries such as Poland, Lithuania, Spain, Italy, Japan, and Sweden already exploring Latvia as a potential base for their EU operations.

Laura Štrovalde, Deputy Director General at the Investment and Development Agency of Latvia (LIAA), emphasised the importance of having concrete success stories:

“The first MiCA licences fundamentally change our conversation with investors. It is much easier to attract the next wave of companies when we can point to real, licensed examples operating from Latvia. Our fintech companies have already proven themselves in the wider market. We have highly qualified talent and a regulator that is open to innovation in crypto-asset services. This creates a strong foundation to multiply the number of licensed firms over the next year.”

Latvia’s MiCA value proposition: fast licensing, low fees, 0% tax on reinvested profits

At the briefing, officials and industry representatives highlighted why Latvia believes it can compete for global crypto and Web3 players under MiCA:

• Gateway to the EU market – A MiCA licence obtained in Latvia can be passported to all EU countries, giving access to the entire single market.
• Fast-track licensing – Latvia targets MiCA or fintech licences within three months, supported by free pre-licensing consultations from Latvijas Banka.
• Low supervision fees – CASPs in Latvia benefit from one of the EU’s most competitive supervisory fee models, capped at 0.6% of annual gross revenues.
• SEPA access for non-banks – Licensed payment providers can connect directly to Latvi Banka’s clearing system, simplifying euro transactions across Europe.
• 0% corporate tax on reinvested profits – Companies pay corporate tax only when profits are distributed, not while they are reinvested in growth.
• Modern incentives: stock options and crypto – Latvia offers competitive employee stock-option schemes and the ability to pay share capital – and, in specific cases, taxes – in cryptocurrency.
• Startup-friendly environment – A dedicated startup visa and government-backed funding programmes support relocation and scaling from Latvia.
• Skilled, international talent – 96% of Latvians speak at least one foreign language, and the country has a strong pool of fintech, IT and engineering professionals.
• Strategic connectivity – Riga International Airport and airBaltic’s network of direct flights to over 70 destinations provide excellent access to Europe, the Middle East, and beyond.

Sofian Berrahal, Board Member at Nexdesk: “For our current and potential clients, the MiCA license means stronger security, standardized compliance, and greater confidence when managing traditional and digital assets. Looking not-even-so-far ahead, it’s clear that the corporate finance will inevitably integrate crypto assets into treasury management, payments, and cross-border operations, driven by efficiency gains and evolving digital asset infrastructure.

Latvia further strengthens its proposition with a dedicated blockchain sandbox operated by Latvijas Banka, providing crypto companies with a secure environment to test innovative business models in consultation with regulatory authorities. The ecosystem is supported by the Fintech Latvia Association and the Latvian Blockchain Association, and anchored by regional events such as UN: BLOCK, TechChill, and ECOM21, which bring international fintech, Web3, and e-commerce communities to Riga each year.

“We offer a rare combination – progressive and predictable”

Reinis Znotiņš, Chairman of the Latvian Blockchain Association, underlined the economic potential of MiCA regulated crypto activity: “Cryptoeconomics is no longer a niche experiment — on some estimates, annual transaction volumes worldwide have already reached the tens of trillions of euros. Thanks to the unified MiCA framework, Europe is becoming one of the largest and safest markets for the development of crypto services, and our region already accounts for a significant share of global activity. Latvia is among the first EU countries to fully apply MiCA and issue licences under the new regime, and the issuance of these first licences is the next step towards much faster growth of the industry. I sincerely hope that from here we will only move faster, so that Latvia can become the Web3 centre of Europe.”

In Lithuania, crypto-focused firms have paid tens of millions of euros in taxes within just a few years. With MiCA now in force, Latvia has a real chance to attract global players looking for a stable, EU-based home for their crypto and Web3 businesses – and to convert that into high-value jobs and tax revenues here in Riga.

Part of a broader fintech growth strategy

The MiCA initiative forms a key pillar of Latvia’s Financial Technology Strategy 2025–2027, which aims to increase the number of fintech companies operating in Latvia by 30%, attract 15% more investment into the sector and boost fintech-related employment by 18%.

LIAA, the Ministry of Economics, Latvijas Banka, Fintech Latvia Association and the Latvian Blockchain Association will continue to work jointly to attract new MiCA licence applicants and strengthen Latvia’s brand as a crypto and fintech centre for the Baltic and Nordic region.

Live to the event: https://www.youtube.com/watch?v=a7dDgixbVAo