Latvia has enacted a new law reforming cryptocurrency investment account taxation. This legislation shifts the tax focus from individual crypto trades to the total amount withdrawn from an eligible account relative to deposits. Moving assets within such an account will no longer trigger immediate tax events. However, investors must still maintain records of their deposits and withdrawals. A special process will be available in 2027 for individuals to declare older crypto holdings acquired before the new rules. This one-time declaration mechanism allows regularization of historical positions with a 10% charge on their end-of-2026 value. The application period for this declaration is set for April 1 to May 31, 2027, with payment due by July 23. Separately, Latvia is exploring the possibility of allowing tax payments in cryptocurrency, though this service is not yet confirmed. This reform reflects broader EU efforts to adapt existing tax frameworks to evolving digital assets. The practical impact will hinge on the specifics of account eligibility and required recordkeeping.