Serbia’s Law on Digital Assets went into effect in July 2021. The Serbian parliament has also adopted a set of amendments to the tax regulations covering digital assets and bylaws which regulate in detail the cryptocurrency business
Adopted bylaws specify among other things, payments in foreign currency in connection with transactions with digital assets, identification and verification of the identity of a natural person using means of electronic communication (video-identification) and the licensing of the business with cryptocurrency and approval of the National Bank of Serbia
The Law defines the basic terms of digital assets, including digital assets themselves, virtual currency, digital asset-related service provider, a user of digital assets, white paper and similar.
The scope of the Law is defined as the regulation of issuance of digital assets and secondary trading in digital assets in the Republic of Serbia, provision of services related to digital assets, lien and fiduciary right on the digital assets, the competence of the Securities Commission and the National Bank of Serbia as bodies which are responsible for supervision on the provisions of this Law.
The Law regulates crowdfunding, which maybe represents the most important feature of the Law since it can be seen as an innovative way to obtain capital for SMEs. The Law states that, for obtaining capital, issuers can issue digital tokens that do not have the characteristics of stocks, nor are they exchangeable for stocks, provided that the total value of issued tokens for one year does not exceed the amount of 3,000,000 euros.
The law defines the user of digital assets as a physical person, entrepreneur or legal entity which uses or used as a service-connected with digital assets or addressed the digital asset-related service provider for the usage of this service. In this way, users are awarded certain rights and obligations in the situation when they use the services of digital asset-related service providers, which can be compared with the legal regime and protection that consumers enjoy when buying goods and services with special reference to concluding contracts online.
The law also defines the owner of digital assets as a user of digital assets, but also as a person who acquired digital assets regardless of the business relationship established with the provider of services related to digital assets or transactions performed through that provider. The Law here refers to mining of crypto currencies as a way of obtaining it without a business relationship with the provider of services. The Law explicitly allows mining, however, also explicitly states that the Law is applicable to it only if it is managed through the digital asset-related service provider.
The Law provides for the constitution of lien on digital assets, as well as fiduciary right on digital assets.
The supervisory bodies for the application of the Law are National Bank of Serbia, for the scope of the Law related to crypto currencies as a type of digital asset, and Securities Commission, for digital asset that has the characteristics of financial instruments.
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Can I start a crypto business in Serbia?
Yes, crypto business is defined by the Law on Digital assets in Serbia.
Do I need to obtain a license?
Yes, for providing digital assets services you need to obtain a license.
How much time is needed to obtain the license?
Who can provide digital asset services in Serbia?
Only a company registered in the Republic of Serbia can be a Provider of services related to digital assets.
What services can be provided under digital asset services?
• receiving, transferring and executing orders relating to the purchase and sale of digital assets on behalf of third parties; • services for the purchase and sale of digital assets for cash and/or funds in the account and/or electronic money; • digital asset exchange services for other digital assets; • storage and administration of digital assets for the account of users of digital assets and related services; • services related to the issuance, offer and sale of digital property, with the obligation to purchase it, or without that obligation • keeping a register of pledges on the digital property; • digital asset acceptance/transfer services; • digital asset portfolio management • organizing a platform for trading digital assets
What is the minimum registered capital?
The entity applying for the relevant license must have a minimum registered capital of EUR 20,000 to EUR 125,000, depending on the type of service it will be providing.
Can I open a bank account connected to the crypto-licensed company?