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 | 33/100 (Moderate Risk) |
| Region | europe |
| Currency | EUR |
| Adoption Rank | #45 |
| Capital Gains (Personal) | 20% personal income tax on crypto gains |
| 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 | fsrb_only |
| FATF Body | MONEYVAL |
| Suspicious-Activity Reporting | Yes |
Status: Unclear
No specific DeFi regulation
Status: no_rules
No specific stablecoin framework
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 | stable |
| Sanctions | No |
| Corruption Index | 59/100 |
| Banking Access | moderate |
Risk Factors
Latvia is politically stable with no international sanctions. Corruption is moderate and the business environment is generally favorable for crypto companies.
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Explore IT Services →Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map
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