In order to facilitate the development of the crypto-asset market in Latvia by setting a framework for the operation of the crypto-asset market, the Saeima adopted in the final reading the Crypto-Asset Services Law as well as related amendments to seven other laws on Thursday, 13 June.  

The Saeima has established the regulation by transposing the requirements of the European Union. The Law applies to persons involved in the issuance, public offering and admission to trading of crypto-assets or providing crypto-asset services. 

The central bank of Latvia Latvijas Banka has been designated as the competent supervisory authority for crypto-assets. The new Law lays down the rights and obligations of the bank, including the power to determine the requirements governing the activities of the subjects of the law, the content and procedures for submitting reports on the activities of service providers and other information to be provided.

Latvijas Banka will also have investigative powers and will be able to impose administrative measures and sanctions for violations in the field of crypto-assets. Latvijas Banka will also be able to set criteria that crypto-asset service providers use to ensure that clients are advised or informed about a crypto-asset service by natural persons who have the necessary knowledge and expertise in this area. 

The new law also lays down the rights and obligations of crypto-asset service providers, including to register with the Latvijas Banka and obtain authorisation to issue, offer to the public or admit to trading crypto-assets or to provide a crypto-asset service. The authorisation of crypto-asset service providers will require a payment to Latvijas Banka and it is planned that this will depend on the amount of resources and services provided for the supervision of this area, as well as the planned income from the provision of this service.    

According to the information provided by the Ministry of Finance, there are currently around 10 crypto-asset service providers in Latvia and they are registered with the State Revenue Service. These service providers will have to re-register with the Latvijas Banka as of July next year.  

The Crypto-Asset Services Law will enter into force on 30 June this year.

Saeima Press Service