Cryptocurrency license in Serbia
Cryptocurrency activities in Serbia are regulated by the Law on Digital Assets, which will enter into force on July 1, 2021. According to the law, there are two types of digital assets: virtual currencies and digital tokens. The law allows the issuance, trading of digital currencies, the provision of cryptocurrency services.
Service providers will be able to operate legally after obtaining permission from the Securities Commission and the National Bank of Serbia.
Who can provide digital asset services and what are these services?
Only a company registered in the Republic of Serbia can be a Digital Asset Service Provider. Registered Providers may perform some or all of the following:
- receiving, transmitting and fulfilling orders related to the purchase and sale of digital assets on/on behalf of third parties; (capital requirement of €20 000);
- buying and selling digital assets for cash or electronic money (capital requirement of €20 000);
- the exchange of digital assets (capital requirement €20 000);
- custody and administration of digital assets and related services (capital requirement €20 000);
- services related to the issuance, offer, and sale of digital property with or without a purchase obligation (capital requirement 20 000 euros);
- maintenance of the register of liens on digital property (capital requirement 20 000 euros);
- acceptance/transfer services for the digital assets (capital requirement €50 000);
- digital asset portfolio management (capital requirement €50 000);
- organization of a platform for trading digital assets (capital requirement €125 000);
The person applying for the relevant license must have a minimum registered capital of between EUR 20 000 and EUR 125 000, depending on the type of service provided.
To start the project, it is enough to register a company in Serbia.
Company registration in Serbia takes about 5 working days.
According to the Value Added Tax Law, transfer or conversion of cryptocurrency into cash will be subject to VAT.
The capital gains tax rate for a company registered in Serbia is 15%.
If the taxpayer invests the funds received from the sale of digital assets in the share capital within 90 days of the sale, the Serbian resident company is exempt from capital gains tax by 50%. A refund of 50% of the capital gains tax paid will be made within 12 months from the date of sale of the digital assets.
Non-resident legal entities will be subject to capital gains tax at the rate of 20% on sales, unless a double taxation treaty applies.