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Digital Asset Service Providers Must Meet Strict Requirements in Serbia

Regulation of Digital Assets in Serbia

In an effort to regulate the growing digital asset market, the Serbian government has introduced strict requirements for companies operating in this space. As of recent, digital asset service providers must register with the National Bank of Serbia (NBS) or the Securities Commission of Serbia (SEC), and meet specific capital requirements.

Capital Requirements

According to the Act on Digital Assets, a minimum registered capital of between 20,000 and 125,000 euros is required, depending on the type of services provided. For example:

  • Companies offering services such as receiving and transmitting digital assets, portfolio management, and trading platforms must have a minimum capital of 50,000 or 125,000 euros.

Registration Requirements

In addition to meeting these capital requirements, digital asset service providers must also submit the following documents:

  • A list of services they intend to provide
  • Articles of association
  • Program of activities
  • Measures against money laundering
  • Organizational structure
  • Information on the persons with title to property
  • Proof of necessary share capital
  • Proof of payment of all applicable fees

EMI Licence

Electronic Money Institutions (EMIs) are licensed by NBS under the Law on Payment Services. To obtain an EMI licence, a person must submit an application to NBS, supported by specific documents, including:

  • Registration in the register of business entities
  • Constituent documents and/or articles of association
  • Program of activities
  • Assessment of risks
  • Business plan
  • Forecast of income and expenditure
  • Description of measures to safeguard funds
  • Organizational structure

As of recent, only 4 electronic money institutions have obtained an EMI licence in Serbia:

  • iPay See
  • Preduzeće za telekomunikacije Telekom Srbija akcionarsko društvo
  • LED Pay
  • AKCIONARSKO DRUŠTVO ZA RAD SA PLATNIM KARTICAMA CHIP CARD

Taxation

The Serbian Parliament has adopted several amendments to the tax laws, defining the tax status of digital assets. Cryptocurrency transactions are exempt from Value Added Tax (VAT), while:

  • Sales or transfers of digital assets by corporate entities are subject to capital gains tax at a rate of 15%.
  • Income derived from cryptocurrency trading is also considered capital gains and taxed at a rate of 15%.

Capital Market Development

The regulation of digital assets has given “green light” to digital investments in future businesses in Serbia, where the traditional market has been concentrated in banks. The dynamic and prospective regulation of digital assets has created a solid foundation for the development of a capital market using digital technologies and created a system to prevent criminal activities such as money laundering and financing terrorism.

Important Note

This article is intended to provide a general guide to the subject matter, not to be considered as legal consultation.