Abstract
This article analyses the legal and economic implications of the Markets in Crypto-Assets Regulation (MiCA, Regulation (EU) 2023/1114) within the European Union (EU) and the Republic of Latvia. The study assesses its impact on national legal systems, investor protection and financial market stability, employing doctrinal, comparative and teleological methodologies. The analysis indicates that a harmonised regulatory framework contributes to reduced regulatory fragmentation and increased legal certainty, addressing challenges previously associated with regulatory uncertainty in the crypto-asset market (European Central Bank, 2025). Empirical analysis is grounded in the practices of the Financial and Capital Market Commission of Latvia and supplemented by statistical data concerning registered crypto-asset service providers. Findings demonstrate that MiCA establishes harmonised licencing and supervisory procedures, enhancing legal certainty, investor protection and cross-border financial market integration. Ongoing challenges include proportionality of regulatory requirements, administrative burdens and innovation scope for smaller Fintech enterprises. When implemented proportionately, MiCA strengthens Latvian financial sector competitiveness and promotes sustainable growth across the EU single market.