Latvia is developing a new Fintech strategy that will make the country more attractive to Fintech and blockchain companies

The Latvian Fintech Sector Development Council convened to discuss and present the new national Fintech strategy. This marks a significant step forward in strengthening Latvia’s position as a regional hub for financial innovation. The Council emphasized the importance of creating a competitive and innovation-friendly regulatory environment, and outlined the next steps for implementing the strategy — including targeted support for the development of Web3 technologies, blockchain-based services, and digital finance infrastructure. Latvia is committed to becoming a forward-thinking ecosystem for Fintech and Web3 companies within the European Union.  New Fintech strategy will create forward looking regime for tokenization of real world assets, that will allow Latvia to  tokenize property and attract investment internationally, including investments from crypto holders.

Prime Minister of Latvia Evika Siliņa: “We’ve made significant progress together with the industry in enabling the crypto sector in Latvia – from allowing share capital to be paid in crypto and being among the first to adopt the MiCA regulation. I see great potential for the industry's growth in Latvia!”

“Latvia has historically been a place with a very highly developed financial sector. We have well-trained and professional people, we have world-class IT infrastructure and we have experience in mastering the latest AML technologies, which allows us to service a large number of transactions in a very short time. That is why I believe that Latvia could be attractive to many companies that would like to develop their business in the European Union,” added Reinis Znotiņš, Latvian Blockchain Association.

Latvia’s emergence as an attractive destination for crypto businesses is no coincidence. The government has taken proactive steps to foster innovation, actively engaging with industry players to tailor a regulatory environment that encourages investment and growth. Key advantages highlighted during the conference included 0% tax on reinvested profits for non-residents, a streamlined licensing process under MiCA regulations, and a skilled, multilingual tech workforce.

Minister of Economics Viktors Valainis noted: “The development of the Web3 sector was an opportunity for Latvia to increase its economic potential in new niches. We had been working diligently for some time to make Latvia the most attractive place for global crypto companies to obtain a MiCA license and expand their activities within the European Union.”