🇱🇻 Latvia

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

StatusLegal
Risk Score33/100 (Moderate Risk)
Regioneurope
CurrencyEUR
Adoption Rank#45

Tax Information

Capital Gains (Personal)20% personal income tax on crypto gains
Capital Gains (Corporate)20% on distributed profits (0% on retained)
VAT on CryptoNo
Staking TaxTaxed as capital income at 20%
Airdrop TaxTaxed 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 & Registration

RequiredYes
RegulatorLatvijas Banka
FrameworkMiCA (EU Regulation 2023/1114, full enforcement from 2024-12-30)
Easemedium
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.

Enforcement Activity

Level: Low

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

AML / KYC

KYC RequiredYes
Travel RuleYes
FATF MemberNo
FATF Statusfsrb_only
FATF BodyMONEYVAL
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: Unclear

No specific DeFi regulation

Stablecoins

Status: no_rules

No specific stablecoin framework

NFTs

Status: no_rules

No specific NFT regulation

Mining

LegalYes
Electricity Cost$0.15/kWh
Renewable Energy30%
Infrastructuregood

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

Geopolitical Risk

Stabilitystable
SanctionsNo
Corruption Index59/100
Banking Accessmoderate

Risk Factors

Latvia is politically stable with no international sanctions. Corruption is moderate and the business environment is generally favorable for crypto companies.

Sources

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Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map

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