Young people across Latvia are increasingly becoming a driving force in the development of the local crypto-economy, according to new data from the Latvian Blockchain Development Association.
Around a quarter (one in four) of individuals in Latvia under the age of 29 own cryptocurrency, according to a survey conducted by research agency Norstat.
The survey, conducted in March 2025, found that 11.4 per cent of Latvia’s population already own cryptocurrencies, with the highest activity observed among youth – 22 per cent of those under 29 years old own cryptocurrencies, while the figure for those aged 30–39 reaches 21 per cent.
A further 19 per cent of residents plan to purchase cryptocurrencies within the next ten years, of whom nine per cent intend to do so within the next year, the survey reveals.
“These figures confirm that the digitally minded generation sees crypto as a serious financial instrument, not merely a short-term entertainment trend,” explained Reinis Znotiņš, head of the Latvian Blockchain Development Association. “Crypto assets are not a passing phenomenon – they are becoming financial instruments that attract various age and income groups, forming a diverse investor community.”
Small scale investing
Income level in Latvia also significantly correlates with crypto asset ownership. Most cryptocurrency owners in Latvia are small-scale investors. In fact, 74 per cent of respondents have invested amounts up to €1,000 (38 per cent less than €100 and 36 per cent between €101 and €1,000).
Another 14 per cent have invested between €1,001 and €5,000, while eight per cent reported investments between €5,001 and €10,000. Only two per cent have invested more than €100,000, and one per cent have made investments exceeding €500,000.
“This trend clearly demonstrates an important aspect – investing in cryptocurrencies does not require large funds. The industry is accessible, and anyone can start investing with small amounts, gradually getting to know the crypto environment and gaining experience. Such an approach can serve as a safe first step into the world of financial innovation,” added Znotiņš.
For buying or selling cryptocurrency, 33 per cent of Latvian residents use the Binance exchange, followed by Coinbase (17 per cent). At the same time, nearly half of users use alternative international platforms, which suggests both a higher level of knowledge and a desire to explore options beyond the most popular and globally recognisable ones. This also indicates that the market is open to various solutions, and some users are looking for more flexible or specific functionalities, including DeFi options or investments via traditional financial instruments.
Strengthening Latvia’s crypto industry
“In a 2022 survey, 28 per cent of residents called for state support for the fintech sector to boost the influx of new companies, jobs, and tax revenue, reflecting public readiness for innovation and pointing to the need for a clear, safe, and supportive regulatory environment,” said Znotiņš.
“Today, thanks to successful cooperation between the industry and responsible institutions, and the implementation of MiCA, Latvia is among the most attractive and competitive environments. The goal of the UN:BLOCK 2025 conference is to attract companies that want to obtain a license in Latvia and open European offices, bringing together industry leaders, regulators, entrepreneurs, and policymakers to create a platform for cooperation and the development of the future crypto ecosystem in Europe.”
The survey findings come soon after the Latvian Parliament adopted amendments to the Personal Income Tax Law on 10 April, as part of a strategic initiative to foster an innovation-friendly business environment and strengthen Latvia’s position as a competitive hub for the crypto industry.
The newly adopted provisions introduce a major tax relief for foreign crypto businesses — income tax will no longer be applied to income earned by non-residents from the sale of publicly traded crypto-assets.
Previously, this income was subject to a three per cent withholding tax, and non-residents could only reclaim it through a complicated refund procedure. Lawmakers noted that the existing process was cumbersome and unattractive to new entrants.
The tax exemption will be in effect for a three-year period — from 1 January 2025 until the end of 2027. It will apply to businesses licensed to provide crypto-asset services within the European Union under current regulations. Meanwhile, the Ministry of Economics will assess the effectiveness of the exemption and submit a report to the Cabinet of Ministers.
