Latvia vs Kosovo
Crypto regulation comparison
Latvia
Kosovo
Legal
Legal
Cryptocurrency is legal in Latvia and regulated under the EU MiCA framework. Since 2023, the financial regulator FKTK merged into Latvijas Banka, which now oversees VASP registration and AML compliance. Capital gains from crypto are taxed at 20%. Latvia has been proactive in implementing EU-wide crypto standards.
Kosovo banned crypto mining in 2022 due to energy crisis but crypto trading remains legal. The Central Bank has warned about crypto risks.
Tax Type
Capital gains
Tax Type
Income
Tax Rate
20%
Tax Rate
0-10%
Exchanges
Yes
Exchanges
Yes
Mining
Yes
Mining
No
Regulator
FKTK (Finanšu un kapitāla tirgus komisija) / Latvijas Banka
Regulator
Central Bank of Kosovo
Stablecoin Rules
Regulated under EU MiCA framework
Stablecoin Rules
No specific stablecoin regulation
Key Points
- VASPs must register with Latvijas Banka and comply with AML/CFT requirements
- Capital gains from crypto taxed at 20% personal income tax rate
- MiCA framework applies from December 2024, transitioning existing registrations
- Latvia transposed the 5th Anti-Money Laundering Directive for crypto oversight
- Latvijas Banka absorbed FKTK regulatory functions in January 2023
Key Points
- Crypto mining banned in 2022 due to energy crisis
- Crypto trading and holding remain legal
- Central Bank has warned about crypto risks
- Income from crypto subject to taxation
- Growing crypto adoption despite mining ban