On 27 May, the Supervision Committee of Latvijas Banka decided to issue to Trek Technologies SIA a licence for the provision of crypto-asset services and a licence to operate as a payment institution. The company operates in the European Union (EU) under the brand name Backpack EU.
A licence for the provision of crypto-asset services enables the company to provide the following services:
- providing custody and administration of crypto-assets on behalf of clients,
- exchanging crypto-assets for funds,
- exchanging crypto-assets for other crypto-assets,
- executing orders for crypto-assets on behalf of clients,
- providing transfer services for crypto-assets on behalf of clients.
Meanwhile, a licence to operate as a payment institution enables Trek Technologies SIA to execute payments, including making transfers to payment accounts.
Trek Technologies SIA is the fifth company to hold a licence issued by Latvijas Banka in accordance with the requirements established in the Markets in Crypto-Assets Regulation (MiCA). The MiCA Regulation entered 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. Upon obtaining authorisation in one EU country, a crypto-asset service provider may provide services throughout the EU in accordance with the mechanism for notifying cross-border activities.
Companies seeking a licence from Latvijas Banka are encouraged to use the licensing guides prepared by Latvijas Banka. These guides provide detailed information on the licensing process and requirements, including the documents to be drawn up and submitted to Latvijas Banka, the application review deadlines, among other details.
Businesses of the crypto-asset sector will also benefit from Latvijas 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.
To ensure a smooth licensing process, Latvijas Banka encourages companies to take advantage of pre-licensing consultations. During these consultations, Latvijas Banka's experts offer guidance to companies on the applicable legal framework and conduct an initial assessment of the company's compliance with regulatory requirements. Collaboration during the pre-licensing stage helps companies prepare high-quality licence applications and ensures that the licensing process proceeds smoothly. Consultation requests can be submitted via Latvijas Banka's website.