In preparing its proposals for consideration of the draft law on "Cryptoasset Services Law", the LBAA has conducted research on the binding supervision and license fees for cryptoasset companies in the Baltic region, as well as the costs applicable to existing participants in the Latvian financial sector.
LBAA believes that the supervisory and licensing fees should be set at a level that are consistent with the objective of the Latvian Fintech Strategy to promote the cryptoasset services industry; are competitive compared to the examples of neighboring Estonia and Lithuania; and take into account the actual market situation in Latvia with an underdeveloped cryptoasset market that has growth potential.
"If we want to develop the cryptoasset industry in Latvia and attract international companies to our economy in a rapidly growing sector, we need to stand out with flexible conditions and competitive custody fees to compete with Lithuania, Estonia and other EU countries in this market," said Reinis Znotiņš, Executive Director of the LBAA.
"Unfortunately, the current regulatory framework will not allow Latvia to attract new players to the sector, so we have developed a new offer and look forward to a constructive dialogue and understanding from our partners. We appreciate the proposals of the Ministry of Economy to reduce supervision fees and look forward to similar support from the Bank of Latvia, the Ministry of Finance and members of the Saeima."
The proposals will be considered by the Budget Committee of the Saeima on Wednesday, June 5 .
