Central Bank of Latvia reports higher fintech licensing volumes and first crypto asset service licences

In an update on implementation of Latvia's Fintech Strategy, the Central Bank of Latvia reported rising fintech licensing activity, the first licences for crypto-asset service providers, and growing use of central bank payment infrastructure by non-bank firms. The update also notes early interest in Latvia's new specialised credit institution licence, which has a lower initial capital threshold and is intended for neobanks and other innovative digital business models. The bank issued eight fintech licences in 2025 and seven more have already been granted in 2026. At the end of 2025, it issued Latvia's first two licences for crypto-asset services, and interest remains strong, with 15 firms currently in the licensing stage and 29 in pre-licensing consultations. New entrants over the period included payment and e-money institutions, crowdfunding service providers and, in April, an investment firm. The bank said its support model includes about 100 free consultations a year and a pre-licensing review process that helps firms prepare complete applications. Access to the Electronic Clearing System is another part of the framework. The system has 13 participants, comprising three Latvian payment and electronic money institutions and 10 institutions licensed elsewhere in the European Union, and several more non-bank providers are preparing to join. The Central Bank of Latvia also said its Instant Verification Service for payee name checks is being used by commercial banks, two other euro area central banks and 10 non-bank payment service providers across the euro area.