From 13 to 15 August, Latvijas Banka will host training during which the US experts will educate the representatives of Latvia's financial supervisory and law enforcement authorities on the operational risks of virtual asset service providers and supervision of these risks.
The training programme developed by the U.S. Securities and Exchange Commission, the New York State Department of Financial Services, the U.S. Department of the Treasury, and Latvijas Banka is designed to be a forum for the exchange of best practices and experience related to the operational risks of virtual asset services. It focuses on objective assessment of these risks and proportionate management solutions within the framework of establishing regulatory requirements, licensing procedures, and supervision practices.
Upon opening the international experience exchange training session, Christopher Robinson, US Ambassador to Latvia, emphasised:
"Virtual currencies and blockchain technology offer great potential. Striking a balance between regulation and innovation is key to achieving economic growth while maintaining resilience."
Mārtiņš Kazāks, Governor of Latvijas Banka highlights:
"We extend our gratitude to the US institutions for the valuable exchange of experience, which will bolster the security and resilience of Latvia's financial sector. This marks a crucial step toward fostering the emergence of new segments within the Latvian financial sector and elevating its competitiveness on the global stage. The financial sector is constantly evolving, and supervisory institutions must enhance their risk-based approach to identify and effectively address financial crimes in the virtual asset domain, while also ensuring that the sector's development and the accessibility of financial services are not impeded. Latvijas Banka and its experts are open to new technologies, knowledge, and the exchange of experience, continually refining their supervisory approach and solutions."
Over the course of the three-day training, US lecturers will delve into topics related to the regulation of virtual asset services. This regulation stipulates compliance, market integrity, and consumer protection, as well as covers licensing of virtual asset service providers, employing practical examples to examine various types and functions of virtual asset services. Experts will deepen their understanding of the current issues in monitoring the operational risks associated with virtual asset services, e.g. technologies that enable anonymity, various blockchains, the potential for banks to transition into virtual asset service providers, and the identification of unlicensed virtual asset service providers.
The training will bring together more than 30 experts from Latvijas Banka, the Ministry of Finance, the Financial Intelligence Unit, the Nordic and Baltic countries.