CASP IN LATVIA: WHY IS CRYPTO BUSINESS CHOOSING RIGA?

The Latvian regulator — the Bank of Latvia — demonstrates a level of openness rare for the EU, offering companies a constructive dialogue. This turns the jurisdiction into a practically ideal hub for those seeking to obtain a European licence without intrigue and uncertainty.

The regulator as a partner: the advantage of a preliminary audit

A key advantage of Latvia today is the opportunity to undergo a preliminary internal audit of the business model. The regulator is ready to analyse the project structure in detail even before an official application is submitted. Instead of a template rejection, the company receives a clear response: whether the specific model meets the CASP requirements or requires adjustment.

This approach saves months of work and tens of thousands of euros, which in other jurisdictions are often spent on "blind" legal support.

Economic expansion: Polish back office, Latvian entity

The market has already identified an effective cost optimisation scheme: registration and licensing in Latvia while maintaining the operational base in Poland. This allows for strict compliance with presence requirements — substance requirements — by hiring key personnel in Riga, including directors and AML officers, while the more expensive back office — developers, support team, and analysts — remains in Poland.

Taking into account the differences in the cost of skilled labour and office rent, such a hybrid model reduces operating expenses by 20–30% compared to a full-fledged presence in Latvia.

What this means for business in 2026

Transparent point of entry. The opportunity to get a preliminary "green light" from the regulator at the idea stage minimises the risk of licence refusal after the share capital has been paid in.

Flexibility in the staffing structure. Latvia does not require the relocation of the entire team. It is sufficient to localise management and control functions, which significantly simplifies business scaling.

Capitalisation and trust. A Latvian licence is perceived more favourably by correspondent banks than mass licensing solutions, thanks to the strict but predictable selection of market participants.

Conclusion

Latvia is becoming an assembly point for crypto companies that value predictability. The combination of an accessible regulator and the possibility to outsource back-office functions to neighbouring jurisdictions makes this region one of the priority destinations for obtaining a CASP licence under MiCA.

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