On 3 December, the Supervision Committee of Latvijas Banka issued a licence to BlockBen SIA for the provision of crypto-asset services. BlockBen SIA is the first crypto-asset service provider to receive a licence in Latvia in accordance with the requirements established in the European Union (EU) Markets in Crypto-Assets Regulation (MiCA).
The MiCA Regulation came into force in late 2024, introducing a unified legal framework for the crypto-asset sector within the EU, including the requirement for crypto-asset service providers to obtain authorisation.
The newly obtained licence will enable BlockBen SIA to offer all permitted crypto-asset services in other EU countries in line with the procedure specified in the MiCA Regulation.
BlockBen SIA has created its own private closed blockchain, where it is possible to exchange crypto-assets for money or other crypto-assets, as well as to store crypto-assets and make crypto-asset transfers. BlockBen SIA offers businesses a crypto-asset (utility token) issuance service and also provides the option to place these crypto-assets on its platform for customers to purchase.
Santa PurgaileDeputy Governor of Latvijas Banka"Latvijas Banka is open to the entry of new companies into Latvia's financial sector. For companies seeking to obtain a licence in Latvia for the provision of crypto-asset services throughout the EU, Latvijas Banka provides professional consultations and promptly offers support during the pre-licensing and licensing stages, acknowledging that adapting business operations to the requirements of a new regulation can be quite challenging. Latvia aims to capitalise on its advantages to become a base for companies that provide innovative financial services scalable at the EU level."
To enable crypto-asset service providers to prepare high-quality applications for obtaining authorisation and to ensure a smooth review process, Latvijas Banka encourages companies to take advantage of the free consultations offered during the pre-licensing stage. During this familiarisation stage, Latvijas Banka's experts offer guidance to companies on the applicable legal framework and the documents to be submitted, and they conduct an initial assessment of the company's compliance with regulatory requirements. Consultation requests can be submitted via Latvijas Banka's website.
This year, experts from Latvijas Banka have provided 50 consultations to companies that are planning to offer crypto-asset services in accordance with the new MiCA Regulation and are considering choosing Latvia as the domicile for their business operations. Currently, 5 companies have submitted licence applications to Latvijas Banka, while another 12 are engaged in pre-licensing consultations.
For the convenience of businesses, Latvijas Banka has created comprehensive guides on obtaining authorisation for the provision of crypto-asset services and the issuance of tokens. The guides offer a clear summary of the steps for preparing and submitting an application to Latvijas Banka, the required documents, and the timeframe within which Latvijas Banka evaluates the application and reaches its decision. Sector players will also benefit from Latvia's Banka's overview of the classification of crypto-assets within the MiCA framework, along with guidance on which crypto-assets are covered by the MiCA Regulation and which are subject to other types of legal acts.