Latvia Prepares For MiCA Compliance With Pre-Licensing Consultations

According to Cointelegraph, the European Union’s Markets in Crypto-Assets Regulation (MiCA) is being implemented in phases across the region, prompting local businesses to respond. In Latvia, the central bank has announced that it will offer pre-licensing consultations for local crypto asset service providers (CASPs) seeking to obtain a MiCA-compliant license in the country. Starting in January 2025, the bank will be responsible for accepting applications and issuing licenses for CASPs. In the interim, it is providing free pre-licensing consultations to help companies prepare for the process. Experts from the central bank will guide companies on applicable regulations, required documents, and an initial assessment of each company’s compliance level. Reinis Znotins, executive director of the Latvian Blockchain Association, emphasized the association’s commitment to supporting local CASPs through the licensing process, aiming to ensure a smooth transition and enable companies to leverage the Latvian market while complying with the new MiCA framework. The central bank’s announcement highlighted that there are no limits to the number of consultations or meetings companies can request before filing their licensing application. Latvia’s proactive stance in offering pre-licensing consultations aims to ensure that companies are ready to comply with MiCA when it comes into force. This approach positions Latvia as an attractive location for crypto-asset service providers within the EU. MiCA is a crucial part of the EU’s broader digital finance strategy, designed to foster innovation while ensuring financial stability and investor protection. Compliance experts in the region have described its implementation as a pivotal moment for crypto regulations. Latvia has been actively working towards implementing laws to support its local crypto ecosystem. In June, regulators advanced the “Crypto Asset Services Law,” which aims to provide a clear regulatory framework to foster growth and investment, supporting the country’s plans to become a hub for blockchain and crypto companies. Minister of Economics Viktors Valainis stated in an interview that Latvia aims to double its economy over the next decade, with significant investments allocated for digitalization and innovation. Latvia is not alone in its proactive approach to 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 enforced.