Latvia’s central bank, Latvijas Banka, is working to understand and regulate fintech and emerging technologies like cryptocurrencies and artificial intelligence (AI). Unlike neighboring Estonia, which has clear regulations for digital currencies, cryptocurrencies remain unregulated in Latvia. The country’s Personal Income Tax Act defines crypto as a capital asset subject to a 20% capital gains tax. However, Latvia has developed its Innovation Hub, where fintech companies can consult with regulators and receive feedback on their business models and licensing requirements. The bank is also adopting new technologies internally, such as moving data to the cloud and using AI technologies like OpenAI’s ChatGPT. The bank is spearheading a project on synthetic data to provide companies with training data sets. Despite a decline in local investments in crypto assets and negative sentiment globally, the adoption of the Markets in Crypto-Assets (MiCA) legislation in the European Union is seen as a positive development for Latvia’s financial services standards.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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