Latvijas Banka issues license to SIA AlphaRoute for crypto-asset services

Information for the media

Supervisory news

On June 18, the Supervisory Committee of the Bank of Latvia issued a license to SIA AlphaRoute for the activity of a crypto-asset service provider.

The license for the crypto-asset service provider allows the company to provide the following services:

• provision of custody and administration of crypto-assets on behalf of clients;
• operation of a crypto-asset trading platform;
• exchange of crypto-assets for funds;
• exchange of crypto-assets for other crypto-assets;
• placement of crypto-assets;
• provision of transfer services for crypto-assets on behalf of clients.

SIA AlphaRoute has received the license in accordance with the requirements of the European Union (EU) Regulation on markets in crypto-assets (Markets in Crypto-Assets Regulation, MiCA). With the entry into force of the MiCA Regulation, a unified legal framework for the crypto-asset sector has been introduced in the EU, including the requirement for crypto-asset service providers to obtain an operating authorization. Upon obtaining an operating authorization in one EU country, a crypto-asset service provider may provide services throughout the EU in accordance with the cross-border notification mechanism.

To date, seven companies have received the Bank of Latvia's authorization to provide crypto-asset services, including one investment broker company.

Companies wishing to obtain a license from the Bank of Latvia are invited to use the licensing guides prepared by the Bank of Latvia, which contain detailed information about the licensing process and requirements, including what documents need to be prepared and submitted to the Bank of Latvia, what the application review deadlines are, and other information.

The report on crypto-asset classification prepared by the Bank of Latvia in accordance with the MiCA Regulation and the explanation of which crypto-assets are subject to the MiCA Regulation and which are subject to other types of legislation will also be useful for crypto-asset industry entrepreneurs.

To ensure a swift licensing process, the Bank of Latvia invites companies to use pre-licensing consultations. In these consultations, Bank of Latvia experts advise companies on the applicable regulation and initially assess the company's compliance with regulatory requirements. Cooperation in the pre-licensing phase helps companies prepare high-quality applications for obtaining a license, and the license acquisition process is swift. Consultations can be registered on the Bank of Latvia's website.

The Bank of Latvia has issued 13 licenses to financial market participants this year. The entry of new market participants into the Latvian financial market confirms that the Bank of Latvia has established a structured and efficient licensing process.