Serbia
Retail_Trading_Status
- Analysis ID
- #154
- Version
- Archived
- Created
- 2025-04-12 06:51
- Run
- c8a53321...
- History
- View all versions
- Workflow Stage
- Live
Executive Summary
Retail cryptocurrency trading is legally permitted and regulated in Serbia under the Law on Digital Assets, effective since June 29, 2021. The National Bank of Serbia (NBS) licenses and supervises virtual currency services, while the Securities Commission oversees digital tokens. Licensed service providers must comply with AML/KYC regulations. While trading is allowed, the NBS has issued warnings about the risks associated with cryptocurrencies, which are not considered legal tender.
Key Pillars
The primary regulator is the National Bank of Serbia (NBS), which licenses and supervises virtual currency services, while the Securities Commission regulates digital tokens. Core compliance requirements include AML/KYC procedures under the Law on Prevention of Money Laundering and Terrorism Financing. Licensing is required for entities providing digital asset services such as exchanges and custodial wallets, with specific capital and operational requirements.
Landmark Laws
- Law on Digital Assets (Zakon o digitalnoj imovini), adopted in late 2020, effective June 29, 2021: Established a comprehensive legal framework for digital assets, permitting the trading, buying, and selling of cryptocurrencies while regulating service providers.
- Law on Prevention of Money Laundering and Terrorism Financing (AML Act): Requires digital asset service providers (DASPs) to implement KYC/AML procedures.
Considerations
Cryptocurrencies are classified as digital assets but are not legal tender. Profits from the sale of cryptocurrencies are subject to a 15% capital gains tax. The National Bank of Serbia (NBS) has issued warnings regarding the risks associated with investing in cryptocurrencies. Mining is permitted but not specifically regulated.
Notes
Serbia was an early adopter in the region to create a comprehensive legal framework for digital assets. The official gazette information related to the Law on Digital Assets is often cited as "Sl. glasnik RS", br. 153/2020. Mining of cryptocurrencies is not subject to regulation in Serbia, but is permitted. The National Bank of Serbia (NBS) has issued warnings about the risks associated with investing in volatile cryptocurrencies.
Detailed Explanation
Detailed Explanation
Serbia permits individual citizens and residents to buy, sell, and hold cryptocurrencies, which are referred to as "virtual currencies" within its legal framework. The key legislation is the Law on Digital Assets (Zakon o digitalnoj imovini), adopted in late 2020 and effective from June 29, 2021. This law distinguishes between "virtual currencies" (like Bitcoin) and "digital tokens," recognizing virtual currencies as a form of digital asset but explicitly stating that they do not have the legal status of money or currency and are not issued or guaranteed by the central bank. Both individuals and legal entities can own and trade digital assets without specific permits. They can acquire cryptocurrencies through mining, initial offerings, or secondary trading. Entities providing services related to digital assets (exchanges, custodial wallet providers, trading platforms) require a license from the relevant supervisory authority, either the National Bank of Serbia (NBS) for virtual currencies or the Securities Commission for digital tokens. Licensed service providers must meet minimum capital requirements (EUR 20,000 to EUR 125,000, depending on the service), adhere to organizational standards, and implement IT security measures. Digital asset service providers (DASPs) are subject to Serbia's Law on Prevention of Money Laundering and Terrorism Financing (AML Act), which necessitates robust Know Your Customer (KYC) procedures, transaction monitoring, and suspicious activity reporting, aligning with international standards like FATF recommendations. Profits from cryptocurrency sales are considered capital gains and are subject to a 15% capital gains tax, with quarterly tax declarations required. The National Bank of Serbia (NBS) has issued warnings about the risks associated with investing in volatile cryptocurrencies, emphasizing that they are not legal tender and that individuals engage in these activities at their own financial risk. Mining of cryptocurrencies is permitted but not specifically regulated. The Law on Digital Assets is officially documented as "Sl. glasnik RS", br. 153/2020.
Summary Points
Retail Cryptocurrency Trading Status in Serbia - April 12, 2025
1. Overall Regulatory Status: Allowed-Regulated
2. Key Regulatory Bodies and Their Roles:
- National Bank of Serbia (NBS):
- Licenses and supervises services related to virtual currencies (e.g., Bitcoin).
- Responsible for decision-making, secondary legislation, and supervision related to virtual currencies.
- Issues warnings about the risks associated with cryptocurrency investment.
- Securities Commission:
- Licenses and supervises services related to digital tokens and digital assets qualifying as financial instruments.
3. Important Legislation and Regulations:
- Law on Digital Assets (Zakon o digitalnoj imovini):
- Adopted in late 2020, effective June 29, 2021.
- Provides a comprehensive legal framework for digital assets in Serbia.
- Defines "digital assets" broadly, distinguishing between "virtual currencies" and "digital tokens."
- Recognizes virtual currencies as a form of digital asset but clarifies they are not legal tender.
- Law on Prevention of Money Laundering and Terrorism Financing (AML Act):
- Applies to Digital Asset Service Providers (DASPs).
4. Requirements for Compliance (Digital Asset Service Providers - DASPs):
- Licensing: Required to provide services related to digital assets (exchanges, custodial wallets, trading platforms).
- Minimum Capital: Ranging from EUR 20,000 to EUR 125,000 depending on the service provided.
- Organizational Standards: Must meet specific organizational requirements.
- IT Security Measures: Must implement robust IT security measures.
- KYC/AML Compliance:
- Implement robust Know Your Customer (KYC) procedures to verify user identity.
- Monitor transactions for suspicious activity.
- Report suspicious activities to relevant authorities.
- Retain transaction records for a minimum period (often 10 years).
5. Notable Restrictions or Limitations:
- Virtual Currencies are Not Legal Tender: The Law on Digital Assets explicitly states that virtual currencies do not have the legal status of money or currency and are not issued or guaranteed by the central bank or public authorities.
- Official Warnings: The NBS has issued warnings about the risks associated with investing in volatile cryptocurrencies.
- Taxation: Profits from the sale of cryptocurrencies by individuals are considered capital gains and are subject to a 15% capital gains tax, declared quarterly.
6. Retail Trading Status:
- Allowed: Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies.
- No Specific Permits Required: Individuals do not need specific permits to own and trade digital assets.
- Acquisition Methods: Individuals can acquire cryptocurrencies through various means, including mining, initial offerings, or secondary trading.
7. Recent Developments or Changes:
- Law on Digital Assets Implementation (June 29, 2021): Established a clear legal and regulatory framework for digital assets.
- Ongoing Supervision: The NBS and Securities Commission are actively licensing and supervising DASPs.
- AML Compliance: Serbian crypto exchanges are actively implementing AML policies, including identity verification.
- Mining: Mining of cryptocurrencies is explicitly allowed but not specifically regulated in detail.
Full Analysis Report
Full Analysis Report
Report: Retail Cryptocurrency Trading Status in Serbia
Topic: Retail_Trading_Status
Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).
Date of Report: April 12, 2025
1. Status: Allowed-Regulated
2. Narrative Explanation:
Individual citizens and residents in Serbia are legally permitted to buy, sell, and hold cryptocurrencies (referred to as "virtual currencies" within the legal framework). This activity is explicitly regulated under the Law on Digital Assets (Zakon o digitalnoj imovini), which was adopted in late 2020 and came into full effect on June 29, 2021. This law established Serbia as one of the early adopters in the region to create a comprehensive legal framework for digital assets, moving the sector out of a legal grey area.
The Law on Digital Assets defines "digital assets" broadly as a digital record of value that can be digitally bought, sold, exchanged, or transferred and used as a means of exchange or for investment purposes. It specifically distinguishes between "virtual currencies" (like Bitcoin) and "digital tokens" (which may represent other rights or assets). While virtual currencies are recognized as a form of digital asset, the law explicitly states they do not have the legal status of money or currency and are not issued or guaranteed by the central bank or public authorities.
Key aspects of the regulatory environment for retail trading include:
- Legality for Individuals: The law permits both natural persons (individuals) and legal entities to own and trade digital assets without needing specific permits themselves. They can acquire cryptocurrencies through various means, including mining (which is permitted but not specifically regulated in detail), initial offerings, or secondary trading.
- Licensed Service Providers: Entities providing services related to digital assets (such as exchanges, custodial wallet providers, trading platforms) must obtain a license from the relevant supervisory authority. The National Bank of Serbia (NBS) is responsible for licensing and supervising services related to virtual currencies, while the Securities Commission handles licensing and supervision for digital tokens and digital assets qualifying as financial instruments. These providers must meet specific requirements, including minimum capital (ranging from EUR 20,000 to EUR 125,000 depending on the service), organizational standards, and IT security measures.
- KYC/AML Requirements: Digital asset service providers (DASPs) are subject to Serbia's Law on Prevention of Money Laundering and Terrorism Financing (AML Act). This means they must implement robust Know Your Customer (KYC) procedures, verifying the identity of their users before allowing them to trade. They are also obligated to monitor transactions, report suspicious activities, and retain transaction records for a minimum period (often 10 years). These requirements align with international standards (like the FATF recommendations and EU AML Directives).
- Consumer Protection: The licensing regime and operational requirements for DASPs aim to provide a degree of consumer protection and market integrity.
- Taxation: Profits from the sale of cryptocurrencies by individuals are considered capital gains and are subject to a 15% capital gains tax. Tax declarations must be filed quarterly when gains (or losses) are realized.
- Official Warnings: While regulating the sector, the National Bank of Serbia (NBS) has previously issued warnings about the risks associated with investing in volatile cryptocurrencies, emphasizing they are not legal tender and that individuals engage in these activities at their own financial risk. This stance does not prohibit trading but serves as a cautionary note.
In summary, Serbia has established a clear legal and regulatory framework that permits retail cryptocurrency trading but subjects the service providers facilitating these activities to licensing, supervision, and strict AML/KYC obligations.
3. Supporting Excerpts:
- On Legality for Individuals: "Both natural persons and legal entities are legally permitted to own and trade with digital assets without the need to prior obtain any permits or licenses." (Doklestic Repic & Gajin, 2022)
- On the Governing Law: "Serbia has adopted the Law on Digital Assets (“Law”) applicable as of 30 June 2021, and hereby positioned itself as one of the first states with a detailed regulated substantive and tax issues pertaining to this hot topic in the digitalization era." (Doklestic Repic & Gajin, 2022)
- On Definition and Status: "Virtual currency means a type of digital assets that is not issued or guaranteed by a central bank or public authority, that is not necessarily attached to a legal tender and that does not have the legal status of money or a currency..." (Law on Digital Assets, Article 2, via NBS)
- On Licensing Requirement: "Services related to digital assets designated by the Law („Services“) can be provided only by the digital assets service provider, which is licensed for provision of the Services the Securities' Commission or the National Bank of Serbia, depending on the Services it intends to provide." (Doklestic Repic & Gajin, 2022)
- On Regulatory Bodies: "The National Bank of Serbia is responsible for decision-making in administrative procedures, adoption of secondary legislation, supervision and the exercise of other rights and obligations of the supervisory authority in the part relating to virtual currencies as a type of digital assets. The National Bank of Serbia grants the licence for the provision of virtual currency services." (NBS Website) "The Securities Commission will be competent when it comes to digital tokens. It will issue authorizations/licenses for the provision of digital asset services..." (JPM & Partners, 2020)
- On KYC/AML: "Additionally, Serbian crypto exchanges must implement AML policies, meaning users must complete identity verification before buying or selling cryptocurrencies." (Belgrade Wealth, Feb 2025) "...crypto service providers in Serbia... are subject to specific obligations under these regulations aimed at preventing money laundering and the financing of terrorism. These obligations are similar to those imposed on traditional financial institutions..." (R&S Law Firm, Nov 2024)
- On Mining: "Serbia remains one of the few countries in the world that has explicitly allowed mining and trading of digital currencies through the adoption of the Law on Digital Assets." (Belgrade Wealth, Feb 2025) "Mining of cryptocurrencies is not subject to regulation in Serbia. It is not prohibited as such..." (Schoenherr, via GLI)
4. Source URLs:
- Law on Digital Assets (Official Gazette Summary/Info):
- JPM & Partners: https://www.jpm.rs/en/news/the-law-on-digital-assets/ (Provides effective date and overview)
- Official Gazette info often cited as "Sl. glasnik RS", br. 153/2020. Direct link to official gazette text may require subscription or search on Serbian government portals.
- National Bank of Serbia (NBS) - Digital Assets Page: https://nbs.rs/en/finansijske-institucije/digitalna-imovina/index.html
- Law on Digital Assets (English Text via NBS): https://nbs.rs/export/sites/nbs/internet/english/10/laws/Law_on_Digital_Assets.pdf
- Doklestic Repic & Gajin Legal Overview (2022): https://www.drg-law.com/news/serbia-legal-overview-for-trading-in-cryptocurrencies-and-taxation/
- Belgrade Wealth Analysis (Feb 2025): https://belgradewealth.com/cryptocurrency-regulation-ownership-and-trading-in-serbia/
- R&S Law Firm Analysis (Nov 2024): https://www.rs.legal/blog/crypto-in-serbia-what-you-need-to-know-about-laws-taxes
- Zunic Law Overview (Digital Asset License): https://zuniclaw.com/en/cryptocurrency-digital-token-license-in-serbia/
- Global Legal Insights (GLI) - Blockchain & Cryptocurrency Regulation 2024 (Schoenherr Chapter - Note: Some parts may pre-date full implementation but cover AML/Mining): https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/serbia (Accessed via Google Search result snippet)
- CMS Law - AML Regulation Overview (Contextual): https://cms.law/en/int/expert-guides/cms-expert-guide-to-anti-money-laundering/serbia (Accessed via Google Search result snippet)
## Report: Retail Cryptocurrency Trading Status in Serbia
**Topic:** Retail_Trading_Status
**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).
**Date of Report:** April 12, 2025
---
**1. Status:** `Allowed-Regulated`
**2. Narrative Explanation:**
Individual citizens and residents in Serbia are legally permitted to buy, sell, and hold cryptocurrencies (referred to as "virtual currencies" within the legal framework). This activity is explicitly regulated under the **Law on Digital Assets (Zakon o digitalnoj imovini)**, which was adopted in late 2020 and came into full effect on June 29, 2021. This law established Serbia as one of the early adopters in the region to create a comprehensive legal framework for digital assets, moving the sector out of a legal grey area.
The Law on Digital Assets defines "digital assets" broadly as a digital record of value that can be digitally bought, sold, exchanged, or transferred and used as a means of exchange or for investment purposes. It specifically distinguishes between "virtual currencies" (like Bitcoin) and "digital tokens" (which may represent other rights or assets). While virtual currencies are recognized as a form of digital asset, the law explicitly states they do not have the legal status of money or currency and are not issued or guaranteed by the central bank or public authorities.
Key aspects of the regulatory environment for retail trading include:
* **Legality for Individuals:** The law permits both natural persons (individuals) and legal entities to own and trade digital assets without needing specific permits themselves. They can acquire cryptocurrencies through various means, including mining (which is permitted but not specifically regulated in detail), initial offerings, or secondary trading.
* **Licensed Service Providers:** Entities providing services related to digital assets (such as exchanges, custodial wallet providers, trading platforms) must obtain a license from the relevant supervisory authority. The **National Bank of Serbia (NBS)** is responsible for licensing and supervising services related to virtual currencies, while the **Securities Commission** handles licensing and supervision for digital tokens and digital assets qualifying as financial instruments. These providers must meet specific requirements, including minimum capital (ranging from EUR 20,000 to EUR 125,000 depending on the service), organizational standards, and IT security measures.
* **KYC/AML Requirements:** Digital asset service providers (DASPs) are subject to Serbia's Law on Prevention of Money Laundering and Terrorism Financing (AML Act). This means they must implement robust Know Your Customer (KYC) procedures, verifying the identity of their users before allowing them to trade. They are also obligated to monitor transactions, report suspicious activities, and retain transaction records for a minimum period (often 10 years). These requirements align with international standards (like the FATF recommendations and EU AML Directives).
* **Consumer Protection:** The licensing regime and operational requirements for DASPs aim to provide a degree of consumer protection and market integrity.
* **Taxation:** Profits from the sale of cryptocurrencies by individuals are considered capital gains and are subject to a 15% capital gains tax. Tax declarations must be filed quarterly when gains (or losses) are realized.
* **Official Warnings:** While regulating the sector, the National Bank of Serbia (NBS) has previously issued warnings about the risks associated with investing in volatile cryptocurrencies, emphasizing they are not legal tender and that individuals engage in these activities at their own financial risk. This stance does not prohibit trading but serves as a cautionary note.
In summary, Serbia has established a clear legal and regulatory framework that permits retail cryptocurrency trading but subjects the service providers facilitating these activities to licensing, supervision, and strict AML/KYC obligations.
**3. Supporting Excerpts:**
* **On Legality for Individuals:** "Both natural persons and legal entities are legally permitted to own and trade with digital assets without the need to prior obtain any permits or licenses." (Doklestic Repic & Gajin, 2022)
* **On the Governing Law:** "Serbia has adopted the Law on Digital Assets (“Law”) applicable as of 30 June 2021, and hereby positioned itself as one of the first states with a detailed regulated substantive and tax issues pertaining to this hot topic in the digitalization era." (Doklestic Repic & Gajin, 2022)
* **On Definition and Status:** "Virtual currency means a type of digital assets that is not issued or guaranteed by a central bank or public authority, that is not necessarily attached to a legal tender and that does not have the legal status of money or a currency..." (Law on Digital Assets, Article 2, via NBS)
* **On Licensing Requirement:** "Services related to digital assets designated by the Law („Services“) can be provided only by the digital assets service provider, which is licensed for provision of the Services the Securities' Commission or the National Bank of Serbia, depending on the Services it intends to provide." (Doklestic Repic & Gajin, 2022)
* **On Regulatory Bodies:** "The National Bank of Serbia is responsible for decision-making in administrative procedures, adoption of secondary legislation, supervision and the exercise of other rights and obligations of the supervisory authority in the part relating to virtual currencies as a type of digital assets. The National Bank of Serbia grants the licence for the provision of virtual currency services." (NBS Website) "The Securities Commission will be competent when it comes to digital tokens. It will issue authorizations/licenses for the provision of digital asset services..." (JPM & Partners, 2020)
* **On KYC/AML:** "Additionally, Serbian crypto exchanges must implement AML policies, meaning users must complete identity verification before buying or selling cryptocurrencies." (Belgrade Wealth, Feb 2025) "...crypto service providers in Serbia... are subject to specific obligations under these regulations aimed at preventing money laundering and the financing of terrorism. These obligations are similar to those imposed on traditional financial institutions..." (R&S Law Firm, Nov 2024)
* **On Mining:** "Serbia remains one of the few countries in the world that has explicitly allowed mining and trading of digital currencies through the adoption of the Law on Digital Assets." (Belgrade Wealth, Feb 2025) "Mining of cryptocurrencies is not subject to regulation in Serbia. It is not prohibited as such..." (Schoenherr, via GLI)
**4. Source URLs:**
* **Law on Digital Assets (Official Gazette Summary/Info):**
* JPM & Partners: [https://www.jpm.rs/en/news/the-law-on-digital-assets/](https://www.jpm.rs/en/news/the-law-on-digital-assets/) (Provides effective date and overview)
* Official Gazette info often cited as "Sl. glasnik RS", br. 153/2020. Direct link to official gazette text may require subscription or search on Serbian government portals.
* **National Bank of Serbia (NBS) - Digital Assets Page:** [https://nbs.rs/en/finansijske-institucije/digitalna-imovina/index.html](https://nbs.rs/en/finansijske-institucije/digitalna-imovina/index.html)
* **Law on Digital Assets (English Text via NBS):** [https://nbs.rs/export/sites/nbs/internet/english/10/laws/Law_on_Digital_Assets.pdf](https://nbs.rs/export/sites/nbs/internet/english/10/laws/Law_on_Digital_Assets.pdf)
* **Doklestic Repic & Gajin Legal Overview (2022):** [https://www.drg-law.com/news/serbia-legal-overview-for-trading-in-cryptocurrencies-and-taxation/](https://www.drg-law.com/news/serbia-legal-overview-for-trading-in-cryptocurrencies-and-taxation/)
* **Belgrade Wealth Analysis (Feb 2025):** [https://belgradewealth.com/cryptocurrency-regulation-ownership-and-trading-in-serbia/](https://belgradewealth.com/cryptocurrency-regulation-ownership-and-trading-in-serbia/)
* **R&S Law Firm Analysis (Nov 2024):** [https://www.rs.legal/blog/crypto-in-serbia-what-you-need-to-know-about-laws-taxes](https://www.rs.legal/blog/crypto-in-serbia-what-you-need-to-know-about-laws-taxes)
* **Zunic Law Overview (Digital Asset License):** [https://zuniclaw.com/en/cryptocurrency-digital-token-license-in-serbia/](https://zuniclaw.com/en/cryptocurrency-digital-token-license-in-serbia/)
* **Global Legal Insights (GLI) - Blockchain & Cryptocurrency Regulation 2024 (Schoenherr Chapter - Note: Some parts may pre-date full implementation but cover AML/Mining):** [https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/serbia](https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/serbia) (Accessed via Google Search result snippet)
* **CMS Law - AML Regulation Overview (Contextual):** [https://cms.law/en/int/expert-guides/cms-expert-guide-to-anti-money-laundering/serbia](https://cms.law/en/int/expert-guides/cms-expert-guide-to-anti-money-laundering/serbia) (Accessed via Google Search result snippet)