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Crypto Regulation in Latvia

Legal

Latvia regulates crypto under MiCA through FKTK (Finanšu un kapitāla tirgus komisija). The regulatory framework follows EU standards with a developing domestic crypto market.

Region: EuropeCurrency: EURAdoption Rank: #45Risk Score: 33/100

Tax Information

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%
Mining Tax
Taxed as business income
Summary
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 & Registration

License Required
Yes
Regulator
FKTK (Finanšu un kapitāla tirgus komisija (Financial and Capital Market Commission))
Framework
Markets in Crypto-Assets Regulation (MiCA)
License Types
Crypto-Asset Service Provider (CASP) Authorization under MiCA
Estimated Cost (USD)
$15,000 - $80,000
Timeline
4-10 months
Ease of Licensing
Medium
Notes
FKTK merged with the Bank of Latvia in 2023. MiCA CASP authorization is overseen by the combined supervisory body.

AML / KYC

KYC Required
Yes
Travel Rule
Yes
FATF Member
No
FATF Status
Compliant
Suspicious Activity Reporting
Yes

Mining

Mining Legal
Yes
Status
Legal
Electricity Cost ($/kWh)
$0.15
Renewable Energy
30%
Climate
Temperate
Infrastructure
Good
Tax on Mining Income
20% on distributed profits (0% on retained)

Soken Services

Legal Opinion
Available | $3,000 - $12,000 | 10 days
Banking
Difficulty: Hard | Crypto-friendly banks: none listed
Min. Deposit
$10,000
Fiat Rails
SEPA, SWIFT, SEPA Instant
Card Payments
Visa, Mastercard
Company Registration
$8,000 | 30 days | Limited Liability Company (LLC)
Licensing Support
Available | $25,000 - $100,000

Sources

Bank of Latvia / FKTK
Reviewed: 2026-03-01likely

Frequently Asked Questions

Is crypto legal in Latvia?
Cryptocurrency is currently classified as "Legal" in Latvia. Latvia regulates crypto under MiCA through FKTK (Finanšu un kapitāla tirgus komisija). The regulatory framework follows EU standards with a developing domestic crypto market.
What is the crypto tax rate in Latvia?
In Latvia, the personal capital gains tax on crypto is 20% personal income tax on crypto gains, and the corporate tax rate is 20% on distributed profits (0% on retained). 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.
Do I need a crypto license in Latvia?
Yes, a crypto license is required in Latvia. The regulator is Finanšu un kapitāla tirgus komisija (Financial and Capital Market Commission) under Markets in Crypto-Assets Regulation (MiCA). Estimated licensing cost: $15,000 - $80,000.
Is crypto mining legal in Latvia?
Yes, crypto mining is legal in Latvia. Electricity costs approximately $0.15/kWh. Mining income is taxed at: 20% on distributed profits (0% on retained).
What are the AML/KYC requirements for crypto in Latvia?
Yes, crypto businesses in Latvia must comply with KYC (Know Your Customer) requirements. The FATF Travel Rule is implemented. FATF compliance status: compliant.