The European Union’s landmark crypto regulation, the Markets in Crypto-Assets (MiCA) Regulation, is starting to be implemented in phases throughout the region, and local businesses are responding.
In Latvia, the central bank announced it would offer pre-licensing consultations for any local crypto asset service providers (CASPs) seeking to gain a MiCA-compliant license in the country.
Navigating MiCA
From January 2025, the bank will be in charge of accepting applications and issuing licenses for CASPs in the country. In the meantime, it said it is helping to prepare companies for the process with free pre-licensing consultations.
Experts from the central bank will offer companies guidance on the regulations applicable to the company, all required documents and an initial assessment of each company’s level of compliance.
Reinis Znotiņš, executive director of the Latvian Blockchain Association, said the association is “committed” to supporting local CASPs as they navigate the licensing process.
“Our goal is to make this transition as smooth as possible, ensuring companies can leverage the full potential of the Latvian market while complying with the new MiCA framework.”
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The central bank’s announcement said there are no limits to the number of consultations or meetings companies can request before filing their licensing application.
Latvia’s crypto market
Latvia’s invitation for pre-licensing consultations is a preparatory measure to ensure that companies are ready to comply with MiCA when it comes into force. This proactive stance allows Latvia to align with MiCA’s requirements and position itself as an attractive location for crypto-asset service providers within the EU.
MiCA implementation timeline. Source: ESMA
MiCA is a significant part of the EU’s broader digital finance strategy, aimed at fostering innovation while ensuring financial stability and protecting investors. Compliance experts in the region have called its implementation a “pivotal moment” for crypto regulations.
Latvia has been actively working toward implementing laws that will help its local crypto ecosystem blossom.
In June, regulators in the country pushed forward its “Crypto Asset Services Law,” which aimed to offer a clear regulatory framework to foster growth and investment and support the country’s plans to be a hub for blockchain and crypto companies.
At the time, the minister of economics, Viktors Valainis, spoke in an in-depth interview with Cointelegraph, stating:
“We aim to double our economy over the next decade, reaching 83 billion euros in GDP by 2035. Smart technologies are a priority, with 183 million euros allocated for digitalization and 210 million euros for innovation.”
However, Latvia is not alone in proactively approaching the forthcoming MiCA implementation.
In August, France’s financial markets regulator, Autorité des Marchés Financiers (AMF), announced that it is accepting applications for CASPs — six months before the laws are actually enforced.
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