Latvia has released for public consultation the Cabinet of Ministers draft regulation “Regulations on the Automatic Exchange of Information on Crypto-Asset Transactions.”
This new framework introduces significant obligations for crypto-asset service providers, establishing a mechanism for international data exchange to enhance transparency in digital financial transactions and improve tax administration.
An International Initiative – OECD Crypto-Asset Reporting Framework
In 2022, the Organisation for Economic Co-operation and Development (OECD) approved the Crypto-Asset Reporting Framework (CARF) — a global standard for the automatic exchange of information between tax authorities regarding individuals’ transactions involving crypto-assets.
At the European Union level, this initiative was implemented through Directive (EU) 2023/2226, which amends Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC8).
The new directive obliges EU Member States to ensure that crypto-asset service providers collect and report information on users’ transactions to their national tax authorities.
How It Will Affect Companies Registered in Latvia
Through these Cabinet regulations, Latvia will establish a detailed procedure for how crypto-asset service providers (such as exchanges, wallet providers, and trading platforms) collect and submit information to the State Revenue Service (VID).
The collected information will be used for automatic international data exchange with tax authorities in other countries.
The reporting obligation will cover:
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all crypto-asset transactions, regardless of transaction size;
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both Latvian and foreign taxpayers;
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legal entities and individuals engaged in crypto-asset trading or custody.
Implementation Timeline and Preparation
The new information exchange framework is expected to take effect on 1 January 2026.
This means that during 2025, crypto-asset service providers will need to adapt their systems and internal procedures to ensure proper data collection and transmission to the VID.
Companies operating in the digital asset sector are advised to assess the impact on their data processing and tax compliance systems in advance, especially if they service clients across multiple jurisdictions.
More Information
The draft regulation is available on the official Legal Acts Portal:
👉 Draft Regulation “Regulations on the Automatic Exchange of Information on Crypto-Asset Transactions”
©INNOVATOR 08.10.2025.
