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Retail_Trading_Status

Allowed-Regulated Unknown
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2025-06-26 13:15
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Executive Summary

In Slovakia, retail trading of cryptocurrencies is legally permitted but regulated, primarily through EU-wide AML/CTF directives and the Markets in Crypto-Assets (MiCA) regulation. The National Bank of Slovakia (NBS) is the primary regulator for Crypto-Asset Service Providers (CASPs) under MiCA, responsible for authorization and supervision. VASPs/CASPs are subject to stringent AML/KYC obligations, requiring retail traders to undergo identity verification, and their transactions may be monitored. Slovakia has transposed MiCA into national law (Act No. 248/2024 Coll. on Certain Obligations and Authorisations in the Field of Crypto-Assets).

Key Pillars

The key regulatory pillars include the National Bank of Slovakia (NBS) as the primary regulator overseeing Crypto-Asset Service Providers (CASPs) under MiCA, stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance requirements for VASPs/CASPs, and the licensing of service providers, transitioning from trade licenses to CASP licenses issued by the NBS. This framework ensures regulatory oversight and compliance for entities operating in the crypto-asset space, including those providing exchange and wallet services.

Landmark Laws

Act No. 297/2008 Coll. on the Protection against Money Laundering and Terrorist Financing, as amended: This act transposes the EU's AML Directives, including the 5th Anti-Money Laundering Directive (5AMLD), into Slovak national law, imposing KYC/AML obligations on Virtual Asset Service Providers (VASPs).
Markets in Crypto-Assets Regulation (MiCA): This EU regulation introduces a comprehensive framework for crypto-assets and CASPs, with the NBS becoming the primary regulator for authorization and supervision.
Act No. 248/2024 Coll. on Certain Obligations and Authorisations in the Field of Crypto-Assets: Slovakia's transposition of MiCA into national law.
DAC8 Directive: Slovakia passed Bill No. 706 to align with the EU's DAC8 directive, expanding the automatic exchange of information (AEOI) to include crypto-asset transactions, with reporting requirements starting from 2026.

Considerations

Cryptocurrencies are not legal tender in Slovakia; payments must be made in euros or other accepted fiat currencies. Profits from cryptocurrency transactions are taxable, with recent amendments to the Income Tax Act introducing a lower tax rate of 7% for cryptocurrencies held for more than a year and exempting crypto-to-crypto exchanges from immediate taxation under specific conditions. Payments for goods and services using crypto up to €2,400 per year are also tax-exempt. The NBS has issued warnings regarding the risks associated with cryptocurrencies, viewing them as high-risk assets.

Notes

Historically, the NBS stated that virtual currencies like Bitcoin do not possess the legal attributes of a currency and are not regulated/supervised by the NBS or the European Central Bank, though individuals and entities could engage with them. Before MiCA, entities providing virtual currency exchange or wallet services required a trade license from the Trade Licensing Office. VASPs authorized before December 30, 2024, can continue services until December 30, 2025, before needing NBS authorization. The Ministry of Finance issued guidelines in 2018 regarding the taxation of virtual currencies. Slovakia's implementation of DAC8 will require crypto-asset service providers to report transaction data starting from 2026.

Detailed Explanation

In Slovakia, the retail trading of cryptocurrencies is permitted but regulated. Historically, the National Bank of Slovakia (NBS) stated that virtual currencies like Bitcoin lack legal attributes of currency and were not under their or the European Central Bank's supervision, though engagement was allowed. The regulatory environment is evolving with the implementation of the European Union's Markets in Crypto-Assets Regulation (MiCA). Prior to MiCA, a trade license was needed from the Trade Licensing Office for virtual currency exchange services or wallet services.

The primary regulation has centered around Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements. Slovakia transposed the EU's AML Directives, including the 5th Anti-Money Laundering Directive (5AMLD), into national law via Act No. 297/2008 Coll. on the Protection against Money Laundering and Terrorist Financing, as amended. This act made Virtual Asset Service Providers (VASPs) obligated entities subject to KYC/AML requirements.

With MiCA starting to apply across EU jurisdictions in 2024, Slovakia is aligning its national legislation, having transposed MiCA into national law as Act No. 248/2024 Coll. on Certain Obligations and Authorisations in the Field of Crypto-Assets. MiCA introduces a comprehensive regulatory framework for crypto-assets and Crypto-Asset Service Providers (CASPs). The NBS is becoming the primary regulator for CASPs under MiCA, responsible for authorizing and supervising these entities. Existing VASPs have a transitional period to become MiCA compliant, generally around December 2025. The NBS indicated that entities authorized before December 30, 2024, may continue services until December 30, 2025, after which they need NBS authorization.

Profits from cryptocurrency transactions are taxable in Slovakia. The Ministry of Finance issued guidelines in 2018, and recent amendments to the Income Tax Act, effective from early 2024, introduced a lower tax rate of 7% for cryptocurrencies held for more than a year. Crypto-to-crypto exchanges are exempt from immediate taxation under certain conditions, and payments for goods and services using crypto up to €2,400 per year are also tax-exempt. Furthermore, health insurance levies on crypto profits have been abolished. Slovakia has also passed Bill No. 706 to align with the EU's DAC8 directive, which expands the automatic exchange of information (AEOI) to include crypto-asset transactions, requiring crypto-asset service providers to report transaction data starting from 2026. The NBS has previously issued warnings about the risks associated with cryptocurrencies, viewing them as high-risk assets.

Summary Points

Okay, here's the regulatory analysis report on Retail_Trading_Status in Slovakia, converted into a clear, well-structured bullet point format:

Retail Trading of Cryptocurrencies in Slovakia: Regulatory Overview (June 2025)

1. General Status:

  • Allowed-Regulated: Individuals are legally permitted to buy, sell, and hold cryptocurrencies. The environment is regulated and evolving, especially with the implementation of MiCA.

2. Key Regulatory Bodies:

  • National Bank of Slovakia (NBS):
    • Primary regulator for Crypto-Asset Service Providers (CASPs) under MiCA.
    • Responsible for authorizing and supervising CASPs.
    • Issued warnings about the risks associated with cryptocurrencies.
  • Financial Intelligence Unit (FIU):
    • Receives suspicious transaction reports from VASPs/CASPs related to AML/CTF.
  • Trade Licensing Office:
    • Previously responsible for issuing trade licenses to virtual currency exchange and wallet providers. This is being superseded by MiCA.
  • Ministry of Finance:
    • Issues guidelines on the taxation of virtual currencies.

3. Key Legislation and Regulations:

  • Markets in Crypto-Assets Regulation (MiCA):
    • EU-wide regulation introducing a comprehensive framework for crypto-assets and CASPs.
    • Slovakia has transposed MiCA into national law (Act No. 248/2024 Coll. on Certain Obligations and Authorisations in the Field of Crypto-Assets).
  • Act No. 297/2008 Coll. on the Protection against Money Laundering and Terrorist Financing (as amended):
    • Transposes EU AML Directives (including 5AMLD) into national law.
    • Subjects Virtual Asset Service Providers (VASPs) to KYC/AML requirements.
  • Income Tax Act (amended in 2024):
    • Defines the tax treatment of cryptocurrency transactions.
  • Bill No. 706 (DAC8 Implementation):
    • Aligns with the EU's DAC8 directive, expanding the automatic exchange of information (AEOI) to include crypto-asset transactions.

4. Compliance Requirements:

  • AML/KYC:
    • VASPs/CASPs are subject to stringent AML/KYC obligations.
    • Retail traders using these platforms must undergo identity verification.
    • Transaction monitoring is in place.
  • Licensing:
    • Previously, a trade license from the Trade Licensing Office was required for exchanges and wallet providers.
    • Under MiCA, CASPs must obtain a license from the NBS.
    • Existing VASPs have a transitional period to become MiCA compliant (generally until December 2025).
  • Taxation:
    • Profits from cryptocurrency transactions are taxable.
    • Lower tax rate of 7% for cryptocurrencies held for more than a year.
    • Crypto-to-crypto exchanges are exempt from immediate taxation under certain conditions.
    • Payments for goods and services using crypto up to €2,400 per year are tax-exempt.
    • Health insurance levies on crypto profits have been abolished.
  • DAC8 Reporting:
    • Crypto-asset service providers will be required to report transaction data starting from 2026.

5. Notable Restrictions or Limitations:

  • No Legal Tender: Cryptocurrencies are not legal tender in Slovakia. Payments must be made in Euros or other accepted fiat currencies.
  • Consumer Warnings: The NBS has issued warnings about the risks associated with cryptocurrencies, viewing them as high-risk assets.

6. Recent Developments and Changes:

  • MiCA Implementation: Slovakia is actively implementing MiCA, with the NBS becoming the primary regulator for CASPs.
  • Transitional Period: Entities authorized before December 30, 2024, to provide virtual currency exchange or wallet services can continue until December 30, 2025, after which they need NBS authorization.
  • Taxation Changes (2024): Amendments to the Income Tax Act introduced a lower tax rate for long-term holdings and exemptions for certain crypto-to-crypto transactions.
  • DAC8 Implementation: Slovakia has passed legislation to align with the EU's DAC8 directive, requiring crypto-asset service providers to report transaction data starting from 2026.

Full Analysis Report

Report on Retail Trading Status of Cryptocurrencies in Slovakia

Date: 2025-06-26

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).

Retail_Trading_Status: Allowed-Regulated

1. Current Status:

Allowed-Regulated

2. Detailed Narrative Explanation:

Individual citizens and residents in Slovakia are legally permitted to buy, sell, and hold cryptocurrencies. The regulatory environment has been evolving, particularly with the implementation of the European Union's Markets in Crypto-Assets Regulation (MiCA).

Historically, Slovakia did not have a specific comprehensive legal framework for cryptocurrencies. The National Bank of Slovakia (NBS) had previously stated that virtual currencies like Bitcoin do not possess the legal attributes of a currency and that activities associated with them were not regulated or supervised by the NBS or the European Central Bank. However, it also noted that individuals and legal entities could still engage with them.

The primary regulation impacting cryptocurrency activities, including for retail traders interacting with service providers, has been centered around Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements. Slovakia transposed the EU's AML Directives (including the 5th Anti-Money Laundering Directive - 5AMLD) into its national law (Act No. 297/2008 Coll. on the Protection against Money Laundering and Terrorist Financing, as amended). This act made Virtual Asset Service Providers (VASPs), such as exchanges and wallet providers, obligated entities subject to KYC/AML requirements, including customer due diligence, risk assessment, and suspicious transaction reporting to the Financial Intelligence Unit (FIU).

Before the full implementation of MiCA, entities providing virtual currency exchange services or virtual currency wallet services were required to obtain a trade license from the Trade Licensing Office. This was a relatively light framework compared to full financial licensing.

With the advent of MiCA, which started to apply across EU jurisdictions in 2024, Slovakia is aligning its national legislation. MiCA introduces a more comprehensive regulatory framework for crypto-assets and Crypto-Asset Service Providers (CASPs). The National Bank of Slovakia (NBS) is becoming the primary regulator for CASPs under MiCA, responsible for authorizing and supervising these entities.

Key aspects of the current and evolving regulatory landscape include:

  • Legality of Retail Trading: It is legal for individuals to own, buy, and sell cryptocurrencies.
  • AML/KYC Requirements: VASPs/CASPs are subject to stringent AML/KYC obligations. This means retail traders using these platforms will need to undergo identity verification and their transactions may be monitored.
  • Licensing of Service Providers: Previously, a trade license was required for exchanges and wallet providers. Under MiCA, these entities will need to obtain a CASP license from the NBS. Existing VASPs have a transitional period to become MiCA compliant, with a deadline generally around December 2025. The NBS has indicated that entities authorized before December 30, 2024, may continue services until December 30, 2025, at the latest, after which they need NBS authorization.
  • Taxation: Profits from cryptocurrency transactions are taxable in Slovakia. The Ministry of Finance issued guidelines in 2018 regarding the taxation of virtual currencies. Recent amendments to the Income Tax Act, effective from early 2024, have significantly changed the tax regime, introducing a lower tax rate of 7% for cryptocurrencies held for more than a year and exempting crypto-to-crypto exchanges from immediate taxation under certain conditions. Payments for goods and services using crypto up to €2,400 per year are also tax-exempt. Health insurance levies on crypto profits have also been abolished.
  • Consumer Warnings: While cryptocurrencies are permitted, the NBS has previously issued warnings about the risks associated with them, viewing them as high-risk assets.
  • MiCA Implementation: Slovakia has transposed MiCA into national law (Act No. 248/2024 Coll. on Certain Obligations and Authorisations in the Field of Crypto-Assets). The NBS will oversee CASPs, and there are specific capital requirements depending on the services offered. The NBS is also preparing for the authorization process and encourages pre-licensing dialogue.
  • DAC8 Implementation: Slovakia has passed Bill No. 706 to align with the EU's DAC8 directive, which expands the automatic exchange of information (AEOI) to include crypto-asset transactions. This will require crypto-asset service providers to report transaction data starting from 2026.

In summary, retail cryptocurrency trading in Slovakia is allowed but is now firmly within a regulated environment, primarily driven by EU-wide AML/CTF directives and the new MiCA regulation, alongside national tax laws. Individuals can freely trade, but the platforms they use are, or will be, subject to licensing and supervision, including KYC/AML procedures.

3. Specific, Relevant Text Excerpts:

  • LegalBison (Updated Dec 10, 2024): "In Slovakia, cryptocurrency businesses enjoy a rather light framework. Virtual asset services are part of the Trade Licensing Act under entries 82a and 82b, “Provision of virtual currency exchange services” and “Providing virtual currency wallet services”. As such, a crypto company in Slovakia shall simply register for one or both of these activities as its trade."
  • LegalBison (Updated Dec 10, 2024): "European AML directives, applied in the country as an amendment to the existing AML law of 2008, are in force and virtual asset services providers shall comply with them."
  • LegalBison (Updated Dec 10, 2024): "The future of the crypto license in Slovakia is tied to the application of the MiCA decree in Europe. This regulation, “Markets in Crypto Assets”, has been voted at the European level and will be applied progressively by member states of the EU, including Slovakia. There hasn't been any information provided regarding the enforcement of MiCA in Slovakia." (Note: More recent sources indicate active MiCA implementation).
  • Coinfomania (June 21, 2025): "Virtual-asset service providers (VASPs) are legally regulated with the form of a trade-licence regime run by the Ministry of Interior but are already under current obligations at EU level in the form of the Fifth Anti-Money-Laundering Directive (5MLD) and future Markets in Crypto-assets Regulation (MiCA)."
  • Coinfomania (June 21, 2025): "Legal status: It is legal to own or trade crypto. Digital assets are not accepted as legal tender; payment of the invoices can only be made in euros or another accepted fiat currency."
  • Národná banka Slovenska (NBS): "The provisions of the MiCA Regulation relating to the provision of crypto-asset services began to apply on 30 December 2024. Persons who were authorized in the Slovak Republic to provide virtual currency exchange services or virtual currency wallet services before 30 December 2024 may continue to perform crypto-asset related services until 30 December 2025 at the latest. After this date, only entities that hold an authorization to provide crypto-asset services issued by the National Bank of Slovakia or the competent foreign supervisory authority will be allowed to carry out such activities."
  • Highgate Law & Tax (article on new crypto taxation): "A time test. Investors who hold cryptocurrency for more than one year prior to the sale (and it was not part of the business assets) will be able to include this income in the special tax base at a favourable rate of 7 per cent."
  • ULC Čarnogurský (Jan 10, 2025): "Until the end of 2024, cryptocurrency businesses could only be conducted on the basis of a free establishment license... As of 2025, it is necessary to obtain an NBS licence for all business activities in the field of cryptoassets. The NBS is the Slovak regulator of activities in cryptoassets. Possession of a license to conduct cryptoasset business is required by EU Regulation 2023/1114 MiCA (Markets in Crypto Assets)."
  • Legalaes (2025): "With the introduction of the Markets in Crypto-Assets Regulation (MiCA), cryptocurrency service providers in Slovakia must now obtain a Crypto-Asset Service Provider (CASP) license to legally operate. Unlike previous frameworks where crypto activities were not under the direct supervision of the National Bank of Slovakia (NBS), MiCA has established uniform regulatory oversight, making the licensing process a key requirement for compliance."
  • Kinstellar (referencing MiCA implementation): "Slovakia has transposed MiCA into Act No. 248/2024 Coll. on Certain. Obligations and Authorisations in the Field of Crypto-Assets. Under this law, the entities which were authorised to provide crypto asset exchange services and virtual crypto asset wallets before 30. December 2024 based on a small trade license may continue to provide such services until 30 December 2025 at the latest."
  • UPay Blog (Dec 11, 2024): "The Slovak government does not restrict private individuals from buying, selling, or holding crypto assets, but there are regulations in place to monitor and control the industry, particularly concerning anti-money laundering (AML) and counter-terrorist financing (CTF) efforts."

4. Direct URL Links to Sources:

Web Sources (20)

Sources discovered via web search grounding

Search queries used (6)
  • retail cryptocurrency trading Slovakia regulation
  • Slovakia cryptocurrency laws 2024 2025
  • National Bank of Slovakia cryptocurrency stance
  • Slovakia AML KYC cryptocurrency exchanges
  • MiCA regulation Slovakia implementation
  • Taxation of cryptocurrency Slovakia for individuals
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