In an interview, we discuss the key features of the Baltic crypto payments market, recent shifts in the local regulatory environment, the impact of MiCA, and much more. This open and dynamic conversation with Mihhail Kaplin, Baltics Regional Manager at CoinsPaid, touches on the intersection of traditional and emerging financial systems, the human factor that still matters more than technology, and the role the Baltic states play in Europe’s evolving crypto industry.
Understanding the Crypto Payments Landscape in the Baltics
How does the Baltic market differ from other European regions when it comes to crypto payments?
The most defining feature of the Baltics is scale. These are small countries with small populations, which means compact markets where trends emerge and spread faster and at lower cost. That’s why we often start testing new initiatives here. It’s easier to build first case studies, gather feedback quickly, and reach the right decision makers.
It’s difficult for me to directly compare the Baltics with a market like the United Kingdom, which is Europe’s largest crypto hub and where I haven’t worked firsthand. But intuitively, it’s clear that in smaller business communities, the path to decision makers is shorter.
It also matters that the Baltic states have historically been among Europe’s leaders in crypto regulation. Estonia, for example, set the tone for the region when it introduced crypto licenses earlier than most. This created an environment where crypto businesses became accustomed to working with regulators and adapting to new rules more quickly.
Are there notable differences in the regulatory environments of Latvia, Lithuania, and Estonia, and how do they affect the development of crypto businesses?
Each Baltic jurisdiction has its own path in shaping the crypto market, and together they offer a clear illustration of how regulation can transform an entire industry. Estonia was an early pioneer. It was among the first in the EU to introduce crypto licenses and went through a period that effectively became an open door. The number of licensed companies grew beyond 1,000. The country then tightened requirements and reduced the number of active licenses to a few dozen. As a result, Estonia’s regulator has accumulated rare expertise and is now considered one of the strongest in Europe when it comes to crypto oversight.
When Estonia began to enforce stricter rules, Lithuania became the next point of attraction. Many companies moved there, and the country quickly emerged as a new hub with a comparable volume of licenses. With MiCA coming into force, Lithuanian authorities are also shifting toward greater structure and transparency. In many ways, they’re now following the trajectory Estonia set earlier. Latvia, meanwhile, is still in the phase of actively inviting crypto companies. It’s trying to carve out its own position, and it will take time to see how this approach develops.
Taken together, these dynamics show a market that’s becoming far more mature and structured. Stricter rules increase transparency, push out weaker or opportunistic players, and build trust across the industry. At the same time, national borders inside the EU matter less and less. Regulation is becoming unified, and crypto businesses in the Baltics are increasingly operating as part of a single European market rather than three separate ones.
What changes has MiCA already introduced in the region?
Inside the market, MiCA feels like a shift to an entirely new level for the crypto industry. It’s almost as if crypto licenses have become the functional equivalent of banking licenses. The logic is straightforward, requirements are higher, and the level of responsibility expected from providers rises with them.
This will inevitably lead to consolidation. Hundreds of companies operated in the market before, but only a small number of the most professional and resilient players will remain. The effect is especially visible in the Baltics. Lithuania alone still has about 370-380 licenses, yet once MiCA is fully implemented, the market will narrow to a much smaller group of firms.
Companies won’t need to maintain offices in every single country anymore. Once they obtain a license in one EU member state, they’ll be able to operate across the entire European market thanks to the MiCA passportisation regime, which allows a Crypto-Asset Service Provider (CASP) authorised in one Member State to provide its services throughout the EEA without further authorisation. At the same time, compliance requirements are becoming stricter, and teams will have to grow in terms of expertise. Businesses will need strong professionals in financial risk and AML.
In the long run, MiCA strengthens trust across the industry. It makes the market more transparent and eliminates long-standing vulnerabilities, including gray jurisdictions and regulatory ambiguity. Those weaknesses are exactly what once allowed painful failures like the collapse of FTX to happen.
The Adoption of Crypto Payments in the Baltics
Which business sectors in the Baltics are adopting crypto payments most actively, and why?
The pace of crypto payment adoption usually depends on the size of the average transaction. When the ticket is high, the likelihood of paying with crypto increases sharply. It’s simply more convenient for a user to process a large transaction in crypto rather than deal with multiple fees on smaller payments.
That’s why premium goods, the luxury segment, and the wider travel industry have been the first to show strong interest in the Baltics. This includes airlines, hotels, and concierge services that book private jets. These are planned expenses, so customers can prepare funds in advance.
The electronics sector is catching up quickly. Local retailers don’t face competition from Amazon, and that gives them a chance to be among the first to offer crypto payments and benefit from a strong marketing impact. Several companies in this segment, like Arvutitark, already accept crypto, and overall interest in it is rising.
Once even one major marketplace adopts crypto payments, the entire market feels an immediate push. A clear FOMO effect emerges, and competitors start moving much faster.
What are the main barriers companies face when they want to adopt crypto payments, and how does CoinsPaid help overcome them?
The most persistent barrier is psychological. Many board members formed their views on crypto years ago, and those views often remain unchanged. Some still see crypto as something dubious or inherently risky. There are entrepreneurs who believe it’s primarily a tool for gray market activity.
The second barrier is a lack of understanding. Many companies simply don’t know how crypto payment mechanics work. For example, all incoming funds can be converted to euros automatically, but business owners worry they’ll have to hold crypto on their balance sheets and deal with the risks of volatility.
There are also compliance concerns, including questions about taxation, legality, and regulatory exposure. In many cases, the hesitation comes from not understanding how the process is supervised.
Finally, there are technical fears. Integration often seems more complex than it really is.
CoinsPaid works through these barriers step by step. We demonstrate how the market is evolving, show examples of competitors that already accept crypto, explain taxation details, and arrange meetings with legal experts. When needed, we provide independent professional opinions. The technical side isn’t difficult either. A manual API integration takes a few hours, and installing a plugin for popular CMS platforms usually takes about 30 minutes.
How do you build trust with local companies and partners?
In the Baltics trust is built primarily through personal contact. It’s not only about formal business communication. Time spent together creates an emotional layer in the relationship, and that matters a lot.
Sometimes this requires unconventional steps. I can share one of my own methods. When a company doesn’t respond for a long time, I bring something neutral like croissants to their office. It may sound simple, but in practice, it’s an effective way to show attention, break the ice, and remind people who you are. If necessary, I go back a second or even a third time, and in most cases it works.
Another key element is creating a light but noticeable sense of FOMO. When a competitor starts accepting crypto and the news spreads through the market, conversations with their peers become much easier.
And of course, informal communication still plays a major role. Sometimes a glass of wine does more for a partnership than a formal contract.
What advice would you give to businesses that want to start accepting crypto payments?
The short answer is that the earlier you move, the better. Crypto payments are on the edge of mainstream adoption, and the companies that take the first step will gain a meaningful advantage.
I’d recommend taking a close look at the provider landscape. Evaluate who offers what, which licenses these companies hold, the jurisdictions they operate in, and how reliable their infrastructure is. It’s also important to consider the availability of convenient plugins, the transparency of fees, and how easy it will be for your team to work with customer support.
You should also pay attention to features like refunds. They’re not always automated in the market yet, but they’re an essential part of a mature payment solution.
Most importantly, crypto users typically generate more value for a business than card users. Their average transaction size is higher, and so is their lifetime value. As a result, accepting crypto payments isn’t just about adding another payment option or running a marketing experiment. It’s a real driver of long-term revenue growth.
