Published: 15.12.2023.
It is planned that an account for keeping customer funds in euro in Latvijas Banka will be available to payment and electronic money institutions licensed within the European Economic Area (EEA) single market and in accordance with the European Union regulation on crypto-asset markets (Markets in Crypto-Assets or MiCA Regulation) requirements for licensed crypto-asset service providers.
Segregated custody of customer funds is one of the key licensing requirements for payment institutions and e-money institutions, as well as crypto-asset service providers. Providing these institutions with the opportunity to open an account with the Bank of Latvia will strengthen the protection of their customers.
In addition to the aforementioned, Latvijas Banka will provide non-bank payment service providers with direct participation in the EKS – Latvijas Banka payment system, which ensures the processing of customer payment orders in the SEPA area, i.e. in the countries of the European Union and the European Economic Area. Currently, direct participation is available to credit institutions and the State Treasury. The development initiative approved by the Bank of Latvia provides that payment and electronic money institutions, as well as credit unions, will also be provided with the opportunity to directly access the EKS. Thus, equal opportunities will be ensured for all Latvian payment service providers and the development of payment services in Latvia will be promoted.
In negotiations with the Ministry of Finance, the Bank of Latvia has agreed on the necessary changes to the national regulation for the implementation of both initiatives. Before promoting the initiatives, the Bank of Latvia also found out the needs of the participants in the financial sector, and today it is meeting with representatives of the sector to discuss the planned services.
The Bank of Latvia plans to start the implementation of both services – the possibility to open an account with the Bank of Latvia for the separate keeping of client funds for licensed payment and electronic money institutions and licensed crypto-asset service providers, as well as the possibility for non-bank payment service providers to participate in EKS – this year and introduce them to the market starting in 2024 June, if the changes in the national regulation will be approved during this time.
Innovation-supporting infrastructure is one of the cornerstones for the development of the FinTech environment and innovative financial services and one of the recommendations included in the Latvian FinTech sector development strategy. A safe and developed financial sector is one of the strategic priorities of the Bank of Latvia.
2023-12-15 07:17:13
#Latvijas #Banka #provide #FinTech #companies #account #storing #client #funds #direct #participation #Electronic #Clearing #System
