The Saeima has adopted the regulation in line with European Union requirements. The law applies to persons involved in the issuance, public offering, and admission to trading of cryptoassets or providing cryptoasset services, the Saeima Press Service said.
The Bank of Latvia (Latvian Central Bank/Latvijas Banka) has been designated as the competent supervisory authority in the field of cryptoassets.
The new law sets out the Bank's rights and obligations, including the power to set requirements regulating the activities of the subjects of the law, the content and submission of activity reports, and other information to be provided by service providers.
The Bank of Latvia will also have investigative powers and will be able to impose administrative measures and sanctions for infringements in the field of cryptoassets. The Bank of Latvia will also be able to set criteria for cryptocurrency service providers to ensure that advice or information on cryptocurrency services is provided to clients by natural persons who have the necessary knowledge and competence in this area.
The new law also sets out the rights and obligations of cryptoasset service providers, including to register with the Bank of Latvia and obtain a permit to issue, offer or admit to public trading cryptoassets or to provide a cryptoasset service. Cryptoasset service providers will be required to pay a fee to the Bank of Latvia for the issuance of a license, which is expected to depend on the resources required for the supervision of this area and the number of services provided, as well as the expected income from the provision of this service.
According to the information provided by the Ministry of Finance, there are currently around 10 cryptoasset service providers in Latvia registered with the State Revenue Service. These service providers will have to re-register with the Bank of Latvia from July next year.
The law on cryptoasset services will enter into force on June 30 this year.
