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Bulgaria

Retail_Trading_Status

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2025-06-26 13:24
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Executive Summary

Retail cryptocurrency trading is legally permitted and regulated in Bulgaria. The Financial Supervision Commission (FSC) is the primary regulator for CASPs, excluding e-money token issuers which are overseen by the Bulgarian National Bank (BNB). Bulgaria has adopted a national Crypto-Asset Markets Act (CAMA) to implement the EU's Markets in Crypto-Assets (MiCA) Regulation, establishing a comprehensive framework for crypto-assets. CASPs are subject to licensing, AML/KYC requirements, and taxation of cryptocurrency gains remains in place, with a 10% flat tax rate on income from the sale or exchange of cryptocurrencies.

Key Pillars

The primary regulator is the Financial Supervision Commission (FSC), which licenses and supervises CASPs, excluding e-money token issuers, which are overseen by the Bulgarian National Bank (BNB). Core compliance requirements include stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures mandated by the Measures Against Money Laundering Act (MAMLA) and the new Crypto-Asset Markets Act (CAMA), aligning with MiCA. Licensing or registration requirements are in place; CASPs must obtain authorization from the FSC to continue operations, with a transitional period for existing CASPs registered under MAMLA to obtain MiCA authorization by July 1, 2026, or potentially December 31, 2025.

Landmark Laws

  • Crypto-Asset Markets Act (CAMA), passed by the Bulgarian Parliament in June 2025, establishes a comprehensive framework for the public trading of crypto-assets, licensing, and state supervision of crypto issuers and service providers.
  • Markets in Crypto-Assets (MiCA) Regulation, effective December 30, 2024, mandates that all crypto-asset service providers (CASPs) in Bulgaria obtain authorization from the Bulgarian Financial Supervision Commission (FSC) to continue operations.
  • Measures Against Money Laundering Act (MAMLA) transposes the EU's Fifth Anti-Money Laundering Directive (5AMLD) and requires CASPs to implement KYC/AML procedures.

Considerations

Crypto assets are considered intangible property, not legal tender. Income from the sale or exchange of cryptocurrencies is generally treated as income from the sale of a financial asset and is subject to a 10% flat tax rate. Specific rules apply for activities deemed professional (taxed at 15%) and for mining income. The FSC has been granted powers to intervene in the market, including the ability to remove websites related to crypto trading or services if they are deemed to pose a risk to consumers.

Notes

Historically, Bulgaria lacked specific crypto laws, and the NRA considered crypto sales income as income from financial assets, taxed at 10%. The BNB and FSC issued warnings about crypto risks but didn't ban individual trading. Bulgaria is actively implementing a clear regulatory framework in line with EU directives, transitioning from a cautious stance. A transitional period is in place for existing CASPs registered under MAMLA to obtain MiCA authorization; these entities may continue operations until July 1, 2026 (or potentially December 31, 2025, based on some interpretations of national transposition).

Detailed Explanation

Individual citizens and residents in Bulgaria are legally permitted to buy, sell, and hold cryptocurrencies. Bulgaria is transitioning to a comprehensive regulatory framework aligned with the European Union's Markets in Crypto-Assets (MiCA) Regulation. Historically, Bulgaria did not have specific laws dedicated to cryptocurrencies, and the National Revenue Agency (NRA) considered income from cryptocurrency sales as income from financial assets, subject to a 10% personal income tax. The Bulgarian National Bank (BNB) and the Financial Supervision Commission (FSC) had issued warnings about the volatility and risks associated with crypto-assets but did not outright ban their trading by individuals. Crypto-asset service providers (CASPs) were primarily subject to registration with the NRA under the Measures Against Money Laundering Act (MAMLA), which transposed the EU's Fifth Anti-Money Laundering Directive (5AMLD), requiring them to implement KYC/AML procedures.

The most significant development is Bulgaria's adoption of a national Crypto-Asset Markets Act (CAMA) to implement the EU's MiCA Regulation. This new law, reportedly passed by the Bulgarian Parliament in June 2025, establishes a comprehensive framework for the public trading of crypto-assets, licensing, and state supervision of crypto issuers and service providers. The Financial Supervision Commission (FSC) is designated as the primary national competent authority responsible for licensing and supervising CASPs (excluding e-money token issuers), while the Bulgarian National Bank (BNB) will oversee issuers of electronic money tokens. The full provisions of MiCA are set to come into effect across the EU, including Bulgaria, by December 30, 2024. A transitional period is in place for existing CASPs registered under MAMLA to obtain MiCA authorization. These entities may continue operations until July 1, 2026 (or potentially December 31, 2025, based on some interpretations of national transposition), by which time they must be fully licensed under the new MiCA-aligned regime.

Stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements continue to be a cornerstone of the regulatory framework. The Measures Against Money Laundering Act (MAMLA) mandates CASPs to conduct customer due diligence, monitor transactions, and report suspicious activities. The new CAMA and MiCA further solidify these obligations. The taxation of cryptocurrency gains for individuals remains in place. Income from the sale or exchange of cryptocurrencies is generally treated as income from the sale of a financial asset and is subject to a 10% flat tax rate. Specific rules apply for activities deemed professional (taxed at 15%) and for mining income. A significant driver for the new regulations is enhanced consumer protection. The FSC has been granted powers to intervene in the market, including the ability to remove websites related to crypto trading or services if they are deemed to pose a risk to consumers.

The Bulgarian government and relevant authorities (BNB, FSC, NRA) have shifted from a cautious, less-defined stance to actively implementing a clear regulatory framework in line with EU directives. While warnings about risks persist, the overarching approach is to regulate the market to ensure transparency, financial stability, and consumer protection, rather than to prohibit retail trading. Crypto possession and trade are legal, with digital assets considered intangible property, not legal tender.

Summary Points

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

Retail Cryptocurrency Trading Status in Bulgaria: 2025

I. Overall Regulatory Status:

  • Allowed-Regulated: Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies.
  • Transitioning to Comprehensive Regulation: Bulgaria is moving towards a comprehensive regulatory framework aligned with the EU's Markets in Crypto-Assets (MiCA) Regulation.

II. Key Regulatory Bodies and Their Roles:

  • Financial Supervision Commission (FSC):
    • Primary national competent authority.
    • Responsible for licensing and supervising Crypto-Asset Service Providers (CASPs), excluding e-money token issuers.
    • Has powers to intervene in the market, including removing websites deemed a risk to consumers.
  • Bulgarian National Bank (BNB):
    • Oversees issuers of electronic money tokens.
    • Issues warnings about the volatility and risks associated with crypto-assets.
  • National Revenue Agency (NRA):
    • Considers income from cryptocurrency sales as income from financial assets.
    • Responsible for tax collection.
    • Historically, CASPs registered with the NRA under the Measures Against Money Laundering Act (MAMLA).

III. Important Legislation and Regulations:

  • Crypto-Asset Markets Act (CAMA):
    • National law implementing the EU's MiCA Regulation.
    • Establishes a comprehensive framework for public trading of crypto-assets, licensing, and state supervision.
    • Passed by the Bulgarian Parliament in June 2025.
  • Markets in Crypto-Assets (MiCA) Regulation (EU):
    • Full provisions effective across the EU, including Bulgaria, by December 30, 2024.
    • Mandates authorization for CASPs.
  • Measures Against Money Laundering Act (MAMLA):
    • Transposes the EU's Fifth Anti-Money Laundering Directive (5AMLD).
    • Requires CASPs to implement KYC/AML procedures.
    • CASPs were primarily subject to registration with the NRA under MAMLA.

IV. Requirements for Compliance:

  • Licensing:
    • CASPs (excluding e-money token issuers) must obtain authorization from the FSC under MiCA.
    • Transitional period for existing CASPs registered under MAMLA to obtain MiCA authorization.
  • AML/KYC:
    • Stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.
    • Customer due diligence, transaction monitoring, and reporting of suspicious activities are mandatory.
    • Requirements are solidified by MAMLA, CAMA, and MiCA.
  • Taxation:
    • Income from the sale or exchange of cryptocurrencies is treated as income from the sale of a financial asset.
    • Subject to a 10% flat tax rate for individuals.
    • Specific rules apply for activities deemed professional (taxed at 15%) and for mining income.

V. Notable Restrictions or Limitations:

  • Transitional Period for Existing CASPs:
    • CASPs registered under MAMLA can continue operations until July 1, 2026 (or potentially December 31, 2025, based on some interpretations), but must be fully licensed under MiCA by then.
  • FSC Intervention Powers:
    • The FSC can remove websites related to crypto trading or services if they are deemed to pose a risk to consumers. (Some debate regarding judicial oversight).

VI. Recent Developments or Changes:

  • Adoption of CAMA: The Bulgarian Parliament passed the Crypto-Asset Markets Act in June 2025.
  • MiCA Implementation: Bulgaria is actively implementing the EU's MiCA Regulation.
  • Shift in Official Stance: The Bulgarian government and relevant authorities have shifted from a cautious stance to actively regulating the market.
  • Consumer Protection: Enhanced consumer protection is a significant driver for the new regulations.

This bullet point format provides a clear and concise overview of the regulatory landscape for retail cryptocurrency trading in Bulgaria.

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Bulgaria

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. Identified Current Status: Allowed-Regulated

2. Detailed Narrative Explanation:

Individual citizens and residents in Bulgaria are legally permitted to buy, sell, and hold cryptocurrencies. While historically operating in a somewhat gray area with limited specific regulations beyond AML/CTF measures and tax obligations, Bulgaria is now firmly moving towards a comprehensive regulatory framework aligned with the European Union's Markets in Crypto-Assets (MiCA) Regulation.

Historical Context and Evolution:
For years, Bulgaria did not have specific laws dedicated to cryptocurrencies. The National Revenue Agency (NRA) considered income from cryptocurrency sales as income from financial assets, subject to a 10% personal income tax. The Bulgarian National Bank (BNB) and the Financial Supervision Commission (FSC) had issued warnings about the volatility and risks associated with crypto-assets but did not outright ban their trading by individuals. Crypto-asset service providers (CASPs) were primarily subject to registration with the NRA under the Measures Against Money Laundering Act (MAMLA), which transposed the EU's Fifth Anti-Money Laundering Directive (5AMLD). This required them to implement KYC/AML procedures.

Current Regulatory Landscape - Implementation of MiCA:
The most significant development is Bulgaria's adoption of a national Crypto-Asset Markets Act (CAMA) to implement the EU's MiCA Regulation. This new law, reportedly passed by the Bulgarian Parliament in June 2025, establishes a comprehensive framework for the public trading of crypto-assets, licensing, and state supervision of crypto issuers and service providers.

Key aspects of the current and upcoming regulatory environment include:

  • Licensing and Supervision: The Financial Supervision Commission (FSC) is designated as the primary national competent authority responsible for licensing and supervising CASPs (excluding e-money token issuers). The Bulgarian National Bank (BNB) will oversee issuers of electronic money tokens.
  • MiCA Full Implementation: The full provisions of MiCA are set to come into effect across the EU, including Bulgaria, by December 30, 2024. A transitional period is in place for existing CASPs registered under MAMLA to obtain MiCA authorization. These entities may continue operations until July 1, 2026 (or potentially December 31, 2025, based on some interpretations of national transposition), by which time they must be fully licensed under the new MiCA-aligned regime.
  • AML/KYC Requirements: Stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements continue to be a cornerstone of the regulatory framework. The Measures Against Money Laundering Act (MAMLA) mandates CASPs to conduct customer due diligence, monitor transactions, and report suspicious activities. The new CAMA and MiCA further solidify these obligations.
  • Taxation: The taxation of cryptocurrency gains for individuals remains in place. Income from the sale or exchange of cryptocurrencies is generally treated as income from the sale of a financial asset and is subject to a 10% flat tax rate. Specific rules apply for activities deemed professional (taxed at 15%) and for mining income.
  • Consumer Protection: A significant driver for the new regulations is enhanced consumer protection. The FSC has been granted powers to intervene in the market, including the ability to remove websites related to crypto trading or services if they are deemed to pose a risk to consumers, a provision that has generated some debate regarding judicial oversight.

Official Stance:
The Bulgarian government and relevant authorities (BNB, FSC, NRA) have shifted from a cautious, less-defined stance to actively implementing a clear regulatory framework in line with EU directives. While warnings about risks persist, the overarching approach is to regulate the market to ensure transparency, financial stability, and consumer protection, rather than to prohibit retail trading.

In summary, retail cryptocurrency trading in Bulgaria is permitted and is now transitioning into a more robustly regulated environment under the MiCA framework and the new national Crypto-Asset Markets Act. Individuals can legally buy, sell, and hold cryptocurrencies, subject to platforms adhering to licensing, AML/KYC, and other regulatory requirements, and individuals complying with tax obligations.

3. Specific, Relevant Text Excerpts:

  • Regarding the new Crypto-Asset Markets Act (CAMA) and MiCA implementation:

    • "On 20 June 2025, the Bulgarian Parliament passed the long-awaited Crypto-Asset Markets Act, marking a significant step toward regulatory clarity and legal certainty for participants in the virtual currencies and blockchain technology sector. The Act introduces rules governing the issuance of crypto-assets, the provision of related services, supervisory measures over market participants, sanctions for violations, and the management of operational and IT risks in the crypto sector. It aligns with three core EU acts: the Markets in Crypto-Assets Regulation (MiCA)..." (Source: Gugushev & Partners Law Office)
    • "Bulgaria's National Assembly has finally approved the new Crypto Asset Markets Law, submitted by the government. It regulates the conditions for public trading in crypto assets, as well as the licensing and state supervision of crypto issuers and related service providers." (Source: Free Press)
    • "The EU's Markets in Crypto-Assets (MiCA) regulation, effective December 30, 2024, mandates that all crypto-asset service providers (CASPs) in Bulgaria obtain authorization from the Bulgarian Financial Supervision Commission (Комисия за финансов надзор, FSC) to continue operations." (Source: Scorechain)
    • "Crypto-asset service providers registered in the current register under Art. 9a of the Anti-Money Laundering Measures Act at the National Revenue Agency may continue to provide the services registered in the register only on the territory of Bulgaria until 31 December 2025." (Source: Mikov & Attorneys) (Note: Other sources suggest a transitional period until July 1, 2026)

  • Regarding the legality and taxation for individuals:

    • "In Bulgaria, the taxation of cryptocurrencies is governed by general national tax law principles, as no specific legislation is dedicated to crypto-assets. The Bulgarian National Revenue Agency (NRA) treats cryptocurrencies as financial assets, and income derived from their sale or exchange is subject to taxation."
    • "Individuals: When an individual exchanges cryptocurrency for fiat currency (e.g., BGN, USD, EUR) or for other cryptocurrencies, it is considered a taxable event. The income generated from such transactions is classified as income from the sale of a financial asset and is subject to a flat tax rate of 10%. This income must be declared in the annual tax return." (Source: Borislavova & Ivanov Law Firm)
    • "Legal status: Crypto possession and trade are legal. Digital assets are considered to be intangible property, not legal tender..." (Source: Coinfomania, June 2025)

  • Regarding AML/KYC requirements:

    • "Bulgaria's AML framework, under the Measures Against Money Laundering Act (Закон за мерките срещу изпирането на пари, ZMIP), requires stringent customer due diligence. Scorechain's tools enable CASPs to verify wallet screening, assess risk levels, and monitor transactions, ensuring compliance with both FSC's requirements and MiCA standards." (Source: Scorechain)
    • "The Bulgarian Law on Measures against Money Laundering (AML Law): The AML Law sets out the requirements for preventing money laundering and terrorist financing activities. It mandates that cryptocurrency businesses obtain a crypto license and implement robust AML and Know Your Customer (KYC) procedures to mitigate the risks associated with financial crimes." (Source: Tetra Consultants)

4. Direct, Accessible URL Links to Sources:

Web Sources (24)

Sources discovered via web search grounding

Search queries used (7)
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  • Bulgaria cryptocurrency laws for individuals
  • Bulgarian National Bank cryptocurrency stance
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  • AML KYC cryptocurrency Bulgaria
  • Taxation of cryptocurrency Bulgaria for individuals
  • MiCA regulation Bulgaria implementation
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