On 18 June, the Supervision Committee of Latvijas Banka issued a licence to SIA AlphaRoute for the provision of crypto-asset services.
A licence for the provision of crypto-asset services authorises the company to provide the following services:
- providing custody and administration of crypto-assets on behalf of clients;
- operating a trading platform for crypto-assets;
- exchanging crypto-assets for funds;
- exchanging crypto-assets for other crypto-assets;
- placing of crypto-assets;
- providing transfer services for crypto-assets on behalf of clients.
SIA AlphaRoute has received a licence in accordance with the requirements of the European Union (EU) Markets in Crypto-Assets Regulation (MiCA). Along with the entry into force of the MiCA Regulation, a unified legal framework for the crypto-asset sector, including the requirement for crypto-asset service providers to obtain authorisation, has been introduced in the EU. 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.
Seven companies, including one investment firm, have so far obtained authorisation from Latvijas Banka to provide crypto-asset services.
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 in accordance with the MiCA Regulation, 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.
Latvijas Banka has issued 13 licences to financial market participants this year. The entry of new market participants into Latvia's financial market confirms that Latvijas Banka has established a structured and efficient licensing process.