Slovenia

**Report: Retail Cryptocurrency Trading Status in Slovenia**

**Date:** April 12, 2025

**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)

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**1. Current Status:** `Allowed-Regulated`

**2. Detailed Narrative Explanation:**

Retail trading of cryptocurrencies (buying, selling, holding) by individual citizens and residents is legally permitted in Slovenia. The country has generally adopted a relatively open stance towards cryptocurrencies and blockchain technology, positioning itself as a crypto-friendly nation within the European Union. However, this activity operates within a defined and evolving regulatory framework, primarily driven by EU directives and regulations, particularly concerning Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) and market integrity.

Historically, Slovenia did not have specific legislation solely dedicated to cryptocurrencies. They were generally defined as virtual currencies, distinct from legal tender, financial instruments, or monetary assets under laws like the Act on Payment Services and Systems. Despite this classification, entities involved in cryptocurrency services, such as exchanges and custodian wallet providers, were brought under the scope of financial regulations, specifically the Prevention of Money Laundering and Terrorist Financing Act (Zakon o preprečevanju pranja denarja in financiranja terorizma - ZPPDFT-2). This act, amended to transpose the EU's 5th Anti-Money Laundering Directive (5AMLD) and align with Financial Action Task Force (FATF) recommendations, explicitly includes virtual currency service providers (VASPs) as obliged entities. These VASPs are required to register with the Office of the Republic of Slovenia for the Prevention of Money Laundering and implement customer due diligence (CDD), including Know Your Customer (KYC) procedures, transaction monitoring, and reporting of suspicious activities.

The most significant recent development is the implementation of the European Union's Markets in Crypto-Assets (MiCA) Regulation (EU) 2023/1114. Slovenia adopted the national Law on the Implementation of the EU Regulation on Crypto-Asset Markets (Zakon o izvajanju Uredbe (EU) o trgih kriptosredstev - ZIUTK), which was published in the Official Gazette on November 8, 2024, and entered into force on November 23, 2024. MiCA itself became fully applicable across the EU, including Slovenia, on December 30, 2024. Notably, Slovenia did not opt for a transitional or "grandfathering" period, meaning MiCA requirements applied in full from this date.

MiCA establishes a comprehensive regulatory framework for crypto-asset issuers and Crypto-Asset Service Providers (CASPs). It aims to enhance investor protection, ensure market integrity, maintain financial stability, and prevent illicit activities. Under MiCA and the implementing ZIUTK, CASPs operating in Slovenia must obtain authorization from the relevant national competent authorities. These authorities are the Securities Market Agency (Agencija za trg vrednostnih papirjev - ATVP) and the Bank of Slovenia (Banka Slovenije). The ATVP is generally responsible for supervising CASPs and issuers of asset-referenced tokens (ARTs), while the Bank of Slovenia oversees issuers of e-money tokens (EMTs).

Therefore, while individuals are free to trade cryptocurrencies, the platforms and service providers they use (exchanges, wallet providers, etc.) are subject to stringent regulations. These include licensing requirements, minimum capital thresholds, governance standards, investor protection rules (like providing clear white papers for issuances), rules against market abuse, and robust AML/CFT/KYC procedures mandated by both ZPPDFT-2 and MiCA.

Regarding taxation, the Financial Administration of the Republic of Slovenia (FURS) has provided guidance. For individuals, capital gains derived purely from fluctuations in cryptocurrency market prices are generally not subject to income tax, as cryptocurrencies are not considered financial instruments under the Personal Income Tax Act. However, income received in the form of cryptocurrency (e.g., for employment, services, or mining) or profits derived from what FURS deems a "permanent business activity" of trading are subject to personal income tax. Corporate entities earning income or capital gains from crypto activities are subject to corporate income tax.

In summary, retail crypto trading is allowed in Slovenia but is conducted within a regulated environment. The regulations primarily target the service providers to ensure market stability, consumer protection, and compliance with AML/CFT standards, indirectly impacting retail users through mandatory KYC procedures on regulated platforms.

**3. Specific Relevant Text Excerpts:**

*   **On MiCA Implementation and Competent Authorities:**
    > "In October 2024, the National Assembly of the Republic of Slovenia adopted the Law on the Implementation of the EU Regulation on Crypto-Asset Markets, which transposes European legislation into the Slovenian legal system. The law, published in the Official Gazette on November 8, 2024, entered into force on November 23, 2024. With this law, Slovenia ensures the legal framework for the implementation of the EU MiCA Regulation (Markets in Crypto-Assets Regulation), which will enter into full force on December 30, 2024... The law designates the competent authorities for supervision and the issuance of licenses for crypto-asset service providers and issuers... These authorities are the Securities Market Agency (Agencija za trg vrednostnih papirjev) and the Bank of Slovenia (Banka Slovenije)..."
    *   *Source:* Kirm Perpar Law Firm (Summarizing Official Gazette information)

*   **On Lack of Grandfathering Period for MiCA:**
    > "Austria, Denmark, Slovenia: No grandfathering period, meaning MiCA applies in full from day one [December 30, 2024]. Crypto companies here must meet MiCA requirements immediately or risk losing their VASP registrations."
    *   *Source:* Januar (Financial Services Provider Analysis)

*   **On Pre-MiCA AML Regulation (ZPPDFT-2):**
    > "As the Markets in Crypto-assets Regulation (“MiCAR”) has not yet entered into force [at time of writing, July 2024], the Slovenian Prevention of Money Laundering and Terrorist Financing Act (“ZPPDFT-2”) and its VASP registration regime is currently the only national regulatory framework applicable to crypto-assets. ZPPDFT-2 transposed 5MLD and also followed the latest FATF recommendation when regulating virtual currency services and their service providers... All virtual currency service providers with a registered seat or branch office in Slovenia are obliged to register with the register of virtual currency service providers... managed and maintained by the Office of the Republic of Slovenia for the Prevention of Money Laundering."
    *   *Source:* CMS Law Firm Expert Guide

*   **On KYC Requirements under AML Law:**
    > "Under the ZPPDFT-2 obliged entities (including banks and savings banks) are required to take measures to identify and prevent money laundering and terrorist financing, and as part of this process to ensure the identification of the customer, including the source of the funds that the customer is transacting with... information that the bank has obtained from the customer within the framework of the know your customer (KYC) process and during transaction monitoring."
    *   *Source:* Banka Slovenije (Slovenian Central Bank)

*   **On Definition and AML Status of Exchanges:**
    > "Cryptocurrencies are virtual currencies in Slovenia, meaning that they are neither financial instruments nor monetary assets per the Slovenian Act on Payment Services and Systems. Similarly, all cryptocurrency exchanges and dealers participating in cryptocurrency trades are considered “financial institutions” for purposes of the Anti-Money Laundering Act, which now makes explicit reference to cryptocurrencies."
    *   *Source:* Freeman Law

**4. Direct URL Links to Sources:**

*   **Kirm Perpar Law Firm (MiCA Implementation Law):** [https://kirmperpar.com/en/law-news/new-law-on-the-implementation-of-the-eu-regulation-on-crypto-asset-markets-ziutk/](https://kirmperpar.com/en/law-news/new-law-on-the-implementation-of-the-eu-regulation-on-crypto-asset-markets-ziutk/)
*   **Januar (MiCA Grandfathering):** [https://januar.com/insights/navigating-mica-how-vasps-can-prepare-for-the-eus-new-crypto-regulations/](https://januar.com/insights/navigating-mica-how-vasps-can-prepare-for-the-eus-new-crypto-regulations/)
*   **CMS Law Firm (Pre-MiCA Regulation):** [https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/slovenia](https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/slovenia)
*   **Banka Slovenije (AML/CFT Information & KYC):** [https://www.bsi.si/en/financial-stability/anti-money-laundering-and-combating-the-financing-of-terrorism-aml-cft](https://www.bsi.si/en/financial-stability/anti-money-laundering-and-combating-the-financing-of-terrorism-aml-cft)
*   **Freeman Law (Crypto Definition & AML):** [https://freemanlaw.com/slovenia-and-cryptocurrency/](https://freemanlaw.com/slovenia-and-cryptocurrency/)
*   **Banka Slovenije (Fintech/Cryptoasset Information):** [https://www.bsi.si/en/fintech/fintech-innovation-contact-point](https://www.bsi.si/en/fintech/fintech-innovation-contact-point)
*   **Financial Administration of the Republic of Slovenia (FURS) - Tax Treatment (via Detailed Description):** [https://www.fu.gov.si/en/taxes_and_other_duties/areas_of_work/tax_treatment_of_activities_with_virtual_currencies_as_per_zdoh_2_zddpo_2_zddv_1_and_zdfs/](https://www.fu.gov.si/en/taxes_and_other_duties/areas_of_work/tax_treatment_of_activities_with_virtual_currencies_as_per_zdoh_2_zddpo_2_zddv_1_and_zdfs/)

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**End of Report**