San Marino
Retail_Trading_Status
- Analysis ID
- #41
- Version
- Archived
- Created
- 2025-04-12 06:39
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- a80fd39a...
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- Workflow Stage
- Live
Executive Summary
San Marino allows regulated retail cryptocurrency trading and aims to be a blockchain hub. The Central Bank of the Republic of San Marino (CBSM) and San Marino Innovation regulate crypto activities, and key legislation includes Decree No. 138 of August 29, 2024, governing token services. Intermediaries must adhere to AML/KYC and obtain authorization. Individuals face an 8% substitute tax on crypto gains exceeding €2,000 annually, aligning with EU's MiCA regulations.
Key Pillars
- Primary regulators: The Central Bank of the Republic of San Marino (CBSM) oversees crypto-assets considered financial instruments, while the Institute for Innovation (San Marino Innovation) regulates other types of tokens and related services.
- Core compliance requirements: Entities must adhere to strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements, including Know Your Customer (KYC) procedures.
- Licensing/Registration: Entities providing crypto-asset services must obtain authorization from the relevant authority (CBSM or San Marino Innovation).
Landmark Laws
- Decree No. 138 of August 29, 2024: Governs the issuance, offering, trading, and provision of services related to tokens, including cryptocurrencies.
- Delegated Decree No. 2 of January 2024: Clarified the tax treatment for crypto-assets, imposing an 8% substitute tax on proceeds exceeding an annual threshold of €2,000.
Considerations
- Crypto-assets are subject to specific tax regulations, with an 8% substitute tax on proceeds exceeding €2,000 annually.
- The regulatory framework emphasizes transparency, consumer protection, and AML/CFT compliance.
- Platforms must adhere to strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements, including Know Your Customer (KYC) procedures.
Notes
- San Marino is actively positioning itself as a blockchain and cryptocurrency center through legal measures and tax benefits.
- The Central Bank of the Republic of San Marino (CBSM) conducted public consultations on crypto-asset regulations in mid-2024 to align with MiCA.
- Platforms like Bitget are legally accessible in San Marino for buying Bitcoin.
Detailed Explanation
Detailed Explanation
San Marino permits its citizens and residents to buy, sell, and hold cryptocurrencies and aims to be a hub for blockchain technology and cryptocurrency innovation. Early regulations focused on attracting blockchain businesses and defining token types, but recent developments and ongoing efforts indicate a move towards a comprehensive framework that includes retail activities and aligns with the EU's Markets in Crypto-Assets (MiCA) regulation. Decree No. 138 of August 29, 2024, governs the issuance, offering, trading, and provision of services related to tokens, including cryptocurrencies. The Central Bank of the Republic of San Marino (CBSM) oversees activities related to crypto-assets considered financial instruments, while the Institute for Innovation (San Marino Innovation) regulates other types of tokens and related services.
For individuals, cryptocurrency trading is legal and subject to tax regulations. Delegated Decree No. 2 of January 2024 clarified the tax treatment for crypto-assets, imposing an 8% substitute tax on proceeds from the transfer or realization of crypto-assets, but only on gains exceeding an annual threshold of €2,000. Entities providing crypto-asset services within San Marino, including exchanges or platforms facilitating retail trading, are subject to regulation and must obtain authorization from the relevant authority (CBSM or San Marino Innovation). These entities must also adhere to strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements, including Know Your Customer (KYC) procedures.
Foreign operators wishing to offer crypto services in San Marino must seek authorization from the CBSM. Platforms like Bitget explicitly state they are legally accessible in San Marino for buying Bitcoin. The CBSM conducted public consultations on crypto-asset regulations in mid-2024, aiming to align with MiCA and further solidify rules for public offering and trading, as evidenced by the "Public Consultation Regulation on Crypto-Activity" launched on June 14, 2024, and ended on July 4, 2024.
Overall, retail trading is allowed but operates within an increasingly regulated environment focused on transparency, consumer protection, market integrity, and AML/CFT compliance.
Summary Points
Retail Cryptocurrency Trading in San Marino: Regulatory Overview
I. General Status
- Allowed-Regulated: Retail cryptocurrency trading (buying, selling, and holding) is permitted in San Marino.
- San Marino aims to be a hub for blockchain and cryptocurrency innovation.
II. Key Regulatory Bodies
- Central Bank of the Republic of San Marino (CBSM):
- Oversees crypto-asset activities considered financial instruments.
- Authorizes foreign DLT operators offering crypto services.
- San Marino Innovation (Institute for Innovation):
- Regulates other types of tokens (not considered financial instruments) and related services.
III. Key Legislation and Regulations
- Decree No. 138 of August 29, 2024:
- Governs the issuance, offering, trading, and provision of services related to tokens, including cryptocurrencies.
- Delegated Decree No. 2 of January 2024:
- Clarifies the tax treatment for crypto-assets.
IV. Requirements for Compliance (for Service Providers)
- Authorization: Entities providing crypto-asset services (exchanges, platforms) must obtain authorization from CBSM or San Marino Innovation.
- AML/CFT Compliance: Strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements must be followed.
- KYC Procedures: Know Your Customer (KYC) procedures are mandatory.
- Foreign Operators: Foreign operators offering crypto services in San Marino must seek authorization from the CBSM.
V. Notable Restrictions or Limitations
- While retail trading is allowed, it operates within an increasingly regulated environment.
- Entities must comply with AML/CFT regulations to operate.
VI. Tax Regulations for Individuals
- 8% Substitute Tax: Applies to proceeds from the transfer or realization of crypto-assets.
- €2,000 Annual Threshold: The 8% tax applies only to gains exceeding €2,000 per year, effectively exempting smaller investors.
VII. Recent Developments and Changes
- Public Consultations (Mid-2024): The CBSM conducted public consultations on crypto-asset regulations.
- Aim: Align with EU's Markets in Crypto-Assets (MiCA) regulation.
- Aim: Further solidify rules for public offering and trading.
- Ongoing Regulatory Development: The regulatory framework is still evolving, focused on:
- Transparency
- Consumer protection
- Market integrity
- AML/CFT compliance
VIII. Examples of Accessibility
- Platforms like Bitget explicitly state they are legally accessible in San Marino for buying Bitcoin.
Full Analysis Report
Full Analysis Report
Report on the Status of Retail Cryptocurrency Trading in San Marino
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).
1. Current Status: Allowed-Regulated
2. Detailed Narrative Explanation:
San Marino permits its citizens and residents to buy, sell, and hold cryptocurrencies. The country has actively positioned itself as a hub for blockchain technology and cryptocurrency innovation, enacting specific legislation to create a clear legal and regulatory environment [3, 4]. While early regulations focused more on attracting blockchain businesses and defining token types (utility and security tokens), recent developments and ongoing regulatory efforts indicate a move towards a comprehensive framework that includes retail activities and aligns with international standards, particularly the EU's Markets in Crypto-Assets (MiCA) regulation [3, 5, 14].
Key legislation includes decrees from 2019 onwards, culminating in Decree No. 138 of August 29, 2024, which governs the issuance, offering, trading, and provision of services related to tokens, including cryptocurrencies [5]. The Central Bank of the Republic of San Marino (CBSM) oversees activities related to crypto-assets considered financial instruments, while the Institute for Innovation (San Marino Innovation) regulates other types of tokens and related services [5, 17].
For individuals (retail traders), cryptocurrency trading is legal and subject to specific tax regulations. Delegated Decree No. 2 of January 2024 clarified the tax treatment for crypto-assets. Individuals face an 8% substitute tax on proceeds from the transfer or realization of crypto-assets, but only on gains exceeding an annual threshold of €2,000, effectively exempting smaller investors [3, 7]. This indicates a clear legal recognition and framework for individual participation in the crypto market.
While individuals are free to trade, entities providing crypto-asset services within San Marino, including exchanges or platforms facilitating retail trading, are subject to regulation. They must obtain authorization from the relevant authority (CBSM or San Marino Innovation) and adhere to strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements [3, 5, 9, 18, 24]. This includes Know Your Customer (KYC) procedures. Foreign operators wishing to offer crypto services in San Marino must also seek authorization from the CBSM [5, 13]. Platforms like Bitget explicitly state they are legally accessible in San Marino for buying Bitcoin [8].
The regulatory framework is still evolving, with the CBSM having conducted public consultations on crypto-asset regulations in mid-2024, aiming to align with MiCA and further solidify rules for public offering and trading [3, 21]. This ongoing development underscores that while retail trading is allowed, it operates within an increasingly regulated environment focused on transparency, consumer protection, market integrity, and AML/CFT compliance [3, 5, 11, 15].
3. Relevant Excerpts from Sources:
- UPay Blog (2024-12-11): "Adoption Status: Cryptocurrency is legal in San Marino. The country is actively making preparations to become a global blockchain and cryptocurrency center by enacting legal measures and tax benefits and executing advanced projects." [3]
- UPay Blog (2024-12-11): "For persons, the tax law implies a substitute tax of 8% on proceeds earned using the transfer or realization of crypto-assets. This rate applies only to transactions exceeding a threshold of €2,000 per year, effectively offering a tax exemption for smaller investors." [3]
- PlasBit (2024-03-04): "Is Cryptocurrency Legal in San Marino? Yes, cryptocurrency is legal in San Marino. The government has shown support for digital currencies and blockchain technology. San Marino has introduced a decree to encourage the development and use of these advancements within its borders." [4]
- Dott.ssa Stefania Maria Gatti (Source on Decree No. 138 of August 29, 2024): "The San Marino Decree No. 138 of August 29, 2024, is a comprehensive regulatory framework designed to govern the issuance, offering, trading, and provision of services related to tokens, including cryptocurrencies, within the Republic of San Marino... Regulatory Bodies: Banca Centrale: - Oversees activities related to cryptocurrencies and other tokens that are considered financial instruments." [5]
- Dott.ssa Stefania Maria Gatti (Source on Decree No. 138 of August 29, 2024): "Foreign DLT operators who intend to carry out the offer of crypto-assets in the Republic of San Marino or request admission to trading in crypto-assets on a trading platform managed by a DLT operator established in the Republic of San Marino, or provide crypto-assets services in the Republic of San Marino, must request authorization from the Central Bank." [5]
- Glysolid on Binance Square (2024-12-16): "San Marino has introduced specific legislation to regulate the taxation of cryptocurrencies... Income from the sale or realization of cryptocurrencies is subject to a substitute tax at a rate of 8%... There is an exemption for capital gains of up to 2,000 euros per year." [7]
- Bitget Guide: "Bitget is legally accessible in San Marino. You can buy Bitcoin in San Marino through Bitget." [8]
- UPay Blog (2024-12-11): "The primary consideration regarding San Marino's blockchain law is its transparency and compliance with anti-money laundering (AML) regulations... Only entities that are in compliance with the AML requirements... are allowed to run..." [3]
- Central Bank of the Republic of San Marino (BCSM) Website: Records show a "Public Consultation Regulation on Crypto-Activity" launched on June 14, 2024, and ended on July 4, 2024, indicating active regulatory development. [21]
4. Source Links:
- UPay Blog: https://upay.co.uk/blog/crypto-adoption-around-the-world-san-marino/ (Archived link may be needed if original changes) [3]
- PlasBit: https://plasbit.com/blog/how-do-i-sell-bitcoin-in-san-marino-a-comprehensive-guide (Archived link may be needed if original changes) [4]
- Dott.ssa Stefania Maria Gatti (Analysis of Decree 138): https://www.stefaniagatti.com/en/high-tech-startup-san-marino-and-blockchain/ [5]
- Glysolid on Binance Square: https://www.binance.com/en/square/post/3160962287079 (Note: User-generated content platform, but summarizes known legislation) [7]
- Bitget Guide: https://www.bitget.com/en/buy-bitcoin/san-marino [8]
- Eternity Law International (Overview): https://eternitylaw.com/news/crypto-regulation-in-san-marino/ [9]
- CoinIdol (2019 Regulation Approval): https://coinidol.com/san-marino-blockchain-cryptocurrency-regulation/ [12]
- Toccaceli Bronzetti (Blockchain Regulation Overview): https://www.toccacelibronzetti.com/en/blockchain-regulation-of-technologies-based-on-distributed-logisters-in-san-marino/ [13]
- San Marino Setup (Overview): https://smsetup.sm/ [14, 19]
- San Marino Chamber of Commerce (Guide): https://www.cc.sm/en/pubblicazioni/doing-business-working-and-living-in-san-marino-short-guide [15, 17]
- San Marino Setup (Legislation Page): https://smsetup.sm/legislation [18]
- Central Bank of San Marino (Consultations): https://www.bcsm.sm/en/normativa/procedure-di-consultazione-effettuate/ [21]
- FATF/MONEYVAL (AML/CFT Context): https://rm.coe.int/moneyval-2021-5-5th-round-mer-san-marino/1680a2976a (PDF Download) [24]
- AIF San Marino (AML/CFT News Example): https://www.aif.sm/wp-content/uploads/2018/04/Newsletter-AIF-n.-1_2018.pdf (PDF Download) [26]
**Report on the Status of Retail Cryptocurrency Trading in San Marino** **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). **1. Current Status:** `Allowed-Regulated` **2. Detailed Narrative Explanation:** San Marino permits its citizens and residents to buy, sell, and hold cryptocurrencies. The country has actively positioned itself as a hub for blockchain technology and cryptocurrency innovation, enacting specific legislation to create a clear legal and regulatory environment [3, 4]. While early regulations focused more on attracting blockchain businesses and defining token types (utility and security tokens), recent developments and ongoing regulatory efforts indicate a move towards a comprehensive framework that includes retail activities and aligns with international standards, particularly the EU's Markets in Crypto-Assets (MiCA) regulation [3, 5, 14]. Key legislation includes decrees from 2019 onwards, culminating in Decree No. 138 of August 29, 2024, which governs the issuance, offering, trading, and provision of services related to tokens, including cryptocurrencies [5]. The Central Bank of the Republic of San Marino (CBSM) oversees activities related to crypto-assets considered financial instruments, while the Institute for Innovation (San Marino Innovation) regulates other types of tokens and related services [5, 17]. For individuals (retail traders), cryptocurrency trading is legal and subject to specific tax regulations. Delegated Decree No. 2 of January 2024 clarified the tax treatment for crypto-assets. Individuals face an 8% substitute tax on proceeds from the transfer or realization of crypto-assets, but only on gains exceeding an annual threshold of €2,000, effectively exempting smaller investors [3, 7]. This indicates a clear legal recognition and framework for individual participation in the crypto market. While individuals are free to trade, entities providing crypto-asset services within San Marino, including exchanges or platforms facilitating retail trading, are subject to regulation. They must obtain authorization from the relevant authority (CBSM or San Marino Innovation) and adhere to strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements [3, 5, 9, 18, 24]. This includes Know Your Customer (KYC) procedures. Foreign operators wishing to offer crypto services in San Marino must also seek authorization from the CBSM [5, 13]. Platforms like Bitget explicitly state they are legally accessible in San Marino for buying Bitcoin [8]. The regulatory framework is still evolving, with the CBSM having conducted public consultations on crypto-asset regulations in mid-2024, aiming to align with MiCA and further solidify rules for public offering and trading [3, 21]. This ongoing development underscores that while retail trading is allowed, it operates within an increasingly regulated environment focused on transparency, consumer protection, market integrity, and AML/CFT compliance [3, 5, 11, 15]. **3. Relevant Excerpts from Sources:** * **UPay Blog (2024-12-11):** "Adoption Status: Cryptocurrency is legal in San Marino. The country is actively making preparations to become a global blockchain and cryptocurrency center by enacting legal measures and tax benefits and executing advanced projects." [3] * **UPay Blog (2024-12-11):** "For persons, the tax law implies a substitute tax of 8% on proceeds earned using the transfer or realization of crypto-assets. This rate applies only to transactions exceeding a threshold of €2,000 per year, effectively offering a tax exemption for smaller investors." [3] * **PlasBit (2024-03-04):** "Is Cryptocurrency Legal in San Marino? Yes, cryptocurrency is legal in San Marino. The government has shown support for digital currencies and blockchain technology. San Marino has introduced a decree to encourage the development and use of these advancements within its borders." [4] * **Dott.ssa Stefania Maria Gatti (Source on Decree No. 138 of August 29, 2024):** "The San Marino Decree No. 138 of August 29, 2024, is a comprehensive regulatory framework designed to govern the issuance, offering, trading, and provision of services related to tokens, including cryptocurrencies, within the Republic of San Marino... Regulatory Bodies: Banca Centrale: - Oversees activities related to cryptocurrencies and other tokens that are considered financial instruments." [5] * **Dott.ssa Stefania Maria Gatti (Source on Decree No. 138 of August 29, 2024):** "Foreign DLT operators who intend to carry out the offer of crypto-assets in the Republic of San Marino or request admission to trading in crypto-assets on a trading platform managed by a DLT operator established in the Republic of San Marino, or provide crypto-assets services in the Republic of San Marino, must request authorization from the Central Bank." [5] * **Glysolid on Binance Square (2024-12-16):** "San Marino has introduced specific legislation to regulate the taxation of cryptocurrencies... Income from the sale or realization of cryptocurrencies is subject to a substitute tax at a rate of 8%... There is an exemption for capital gains of up to 2,000 euros per year." [7] * **Bitget Guide:** "Bitget is legally accessible in San Marino. You can buy Bitcoin in San Marino through Bitget." [8] * **UPay Blog (2024-12-11):** "The primary consideration regarding San Marino's blockchain law is its transparency and compliance with anti-money laundering (AML) regulations... Only entities that are in compliance with the AML requirements... are allowed to run..." [3] * **Central Bank of the Republic of San Marino (BCSM) Website:** Records show a "Public Consultation Regulation on Crypto-Activity" launched on June 14, 2024, and ended on July 4, 2024, indicating active regulatory development. [21] **4. Source Links:** * **UPay Blog:** [https://upay.co.uk/blog/crypto-adoption-around-the-world-san-marino/](https://upay.co.uk/blog/crypto-adoption-around-the-world-san-marino/) (Archived link may be needed if original changes) [3] * **PlasBit:** [https://plasbit.com/blog/how-do-i-sell-bitcoin-in-san-marino-a-comprehensive-guide](https://plasbit.com/blog/how-do-i-sell-bitcoin-in-san-marino-a-comprehensive-guide) (Archived link may be needed if original changes) [4] * **Dott.ssa Stefania Maria Gatti (Analysis of Decree 138):** [https://www.stefaniagatti.com/en/high-tech-startup-san-marino-and-blockchain/](https://www.stefaniagatti.com/en/high-tech-startup-san-marino-and-blockchain/) [5] * **Glysolid on Binance Square:** [https://www.binance.com/en/square/post/3160962287079](https://www.binance.com/en/square/post/3160962287079) (Note: User-generated content platform, but summarizes known legislation) [7] * **Bitget Guide:** [https://www.bitget.com/en/buy-bitcoin/san-marino](https://www.bitget.com/en/buy-bitcoin/san-marino) [8] * **Eternity Law International (Overview):** [https://eternitylaw.com/news/crypto-regulation-in-san-marino/](https://eternitylaw.com/news/crypto-regulation-in-san-marino/) [9] * **CoinIdol (2019 Regulation Approval):** [https://coinidol.com/san-marino-blockchain-cryptocurrency-regulation/](https://coinidol.com/san-marino-blockchain-cryptocurrency-regulation/) [12] * **Toccaceli Bronzetti (Blockchain Regulation Overview):** [https://www.toccacelibronzetti.com/en/blockchain-regulation-of-technologies-based-on-distributed-logisters-in-san-marino/](https://www.toccacelibronzetti.com/en/blockchain-regulation-of-technologies-based-on-distributed-logisters-in-san-marino/) [13] * **San Marino Setup (Overview):** [https://smsetup.sm/](https://smsetup.sm/) [14, 19] * **San Marino Chamber of Commerce (Guide):** [https://www.cc.sm/en/pubblicazioni/doing-business-working-and-living-in-san-marino-short-guide](https://www.cc.sm/en/pubblicazioni/doing-business-working-and-living-in-san-marino-short-guide) [15, 17] * **San Marino Setup (Legislation Page):** [https://smsetup.sm/legislation](https://smsetup.sm/legislation) [18] * **Central Bank of San Marino (Consultations):** [https://www.bcsm.sm/en/normativa/procedure-di-consultazione-effettuate/](https://www.bcsm.sm/en/normativa/procedure-di-consultazione-effettuate/) [21] * **FATF/MONEYVAL (AML/CFT Context):** [https://rm.coe.int/moneyval-2021-5-5th-round-mer-san-marino/1680a2976a](https://rm.coe.int/moneyval-2021-5-5th-round-mer-san-marino/1680a2976a) (PDF Download) [24] * **AIF San Marino (AML/CFT News Example):** [https://www.aif.sm/wp-content/uploads/2018/04/Newsletter-AIF-n.-1_2018.pdf](https://www.aif.sm/wp-content/uploads/2018/04/Newsletter-AIF-n.-1_2018.pdf) (PDF Download) [26]