Thinking about where to launch your fintech in Europe? Latvia provides regulatory clarity, a streamlined licensing process, and structured supervision, along with access to central-bank infrastructure designed to support modern payment services. These elements create a predictable environment for companies preparing to scale across the European Economic Area under harmonised European Union (EU) rules.
The following factors are among the key reasons to consider Latvia as the jurisdiction for your European operations.
1. Early consultations that reduce uncertainty
One of the factors companies value most in Latvia is the opportunity to engage with the supervisor at an early stage. Latvia places strong emphasis on early interaction, offering free consultations that can be held in person or remotely – a practical advantage for teams operating across different jurisdictions. These consultations allow applicants to clarify regulatory expectations, understand required documentation and governance standards, and address key questions before submitting a formal application. For fintechs still refining their product and compliance architecture, this early dialogue supports more complete submissions, optimises time for later revisions, and makes the authorisation phase significantly more manageable and predictable.
2. A structured and transparent licensing pathway
Latvia's licensing process is accompanied by publicly available supervisory guidance explaining regulatory interpretation, required materials, and indicative timeframes. Pre-licensing engagement with the regulator helps applicants to gauge initial feedback on the project readiness and on compliance with the fundamental requirements. This predictability and procedural transparency support realistic implementation planning and help institutions align compliance with product development. For fintech leadership and investors, predictability in authorisation timelines is often a central factor when evaluating a jurisdiction, and Latvia's approach enables more confident planning of capital allocation, hiring, and go-to-market strategies.
3. Direct participation in central-bank settlement infrastructure
A technologically significant development in Latvia is the opportunity for non-bank payment service providers to participate in the Electronic Clearing System (EKS) operated by Latvijas Banka. Eligible institutions may execute SEPA credit transfers, including instant payments, directly through central-bank infrastructure rather than via intermediary commercial banks. In operational terms, this offers increased independence and efficiency and supports product designs built around real-time settlement of account-to-account transfers. For fintechs operating cross-border flows or building services that rely on direct SEPA connectivity, this capability influences both product design and business scalability.
4. A balanced cost structure and EU regulatory alignment
Latvia applies EU-standard capital, safeguarding, AML/CTF, and reporting requirements and maintains reduced supervisory fees for certain innovative payment models. Although operational cost levels vary depending on business design, the regulatory framework offers clarity and balance for early-stage institutions. For fintech companies and investors evaluating the long-term viability of regulated operations, this alignment with the EU law and predictable supervisory interaction reduce compliance uncertainty and support scaling under a consistent European rule set.
5. Crypto-asset service authorisation under the MiCA framework
Latvia has also become relevant for crypto-asset service providers following the entry into application of the EU Markets in Crypto-Assets Regulation (MiCA). From early 2025, Latvijas Banka accepts applications from crypto-asset service providers under the MiCA licensing regime, with two licences already issued in 2025 and additional applicants currently in the licensing and pre-licensing processes. As with payment and e-money authorisations, pre-licensing consultations are available to crypto-asset providers, enabling applicants to verify compliance with MiCA requirements and prepare comprehensive documentation before the formal submission. Once authorised, crypto-asset service providers may offer services across the EU under the passporting mechanism.
Where to start
Apply for consultation with Latvijas Banka's experts here.
For further information, please contact Latvijas Banka.
Contact details
- Phone: +371 67 022 646
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Explore the fintech ecosystem
Latvijas Banka actively supports fintech development and promotes innovation in the financial system as one of its strategic priorities. At the same time, the broader ecosystem includes other public institutions, such as authorities responsible for taxation and data protection. Additional support is provided through various programmes by the Investment and Development Agency of Latvia, as well as by associations established by market participants.