To date, at our request to the FKTK – Financial and Capital Market Commission, we have received the official opinion of the Latvian regulator on the activities of cryptocurrencies in Latvia:
The emission and use of this type of financial instruments such as cryptocurrencies, in particular bitcoin, is not regulated in any way. Therefore neither bitcoin nor similar instruments are considered official currency and are not classified as the currency of any state.
Bitcoin or any other virtual currency is not subject to the regulations of the Commission’s competence (that is, it does not apply – the Law on Payment Services and Electronic Money, the Law on the Financial Instruments Market).
Therefore, commercial activities related to the purchase and distribution of bitcoins or similar cryptocurrencies are not considered financial instruments or money issuance, nor are they payment services.
Therefore, an individual or legal entity that conducts commercial activities related to the purchase and distribution of bitcoins is not licensed or registered with the Commission as participants in the financial and capital market.
In connection with the above, in Latvia, bitcoin is essentially perceived as a commodity or product that can be used as an exchange medium, if the parties have agreed on this. Therefore, this instrument is not equated to legal means of payment.
Thus, in Latvia there is no regulatory framework regulating the mentioned type of commercial activity. There are also no special prohibitions for equipment or the obligation to obtain special licenses. Cryptocurrency is simply not a financial instrument.
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