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Slovenia

Retail_Trading_Status

Allowed-Regulated Unknown
Analysis ID
#573
Version
Latest
Created
2025-06-26 13:30
Workflow Stage
Live

Executive Summary

In Slovenia, retail cryptocurrency trading is legally permitted but regulated. The Prevention of Money Laundering and Terrorist Financing Act (ZPPDFT-2) requires Virtual Asset Service Providers (VASPs) to register and comply with AML/KYC obligations. Slovenia is also implementing the EU's Markets in Crypto-Assets (MiCA) Regulation, with full effect expected by December 30, 2024, impacting Crypto-Asset Service Providers (CASPs). A draft law proposes a 25% tax on crypto trading profits, set to take effect on January 1, 2026.

Key Pillars

The key regulatory pillars include: the Office of the Republic of Slovenia for the Prevention of Money Laundering, which oversees VASP registration and AML compliance; the Securities Market Agency and the Bank of Slovenia, responsible for overseeing MiCA implementation; core compliance requirements under ZPPDFT-2, including AML/KYC/CDD; and the requirement for VASPs to register with the relevant authority.

Landmark Laws

  • Prevention of Money Laundering and Terrorist Financing Act (ZPPDFT-2): Transposes the EU's 5th Anti-Money Laundering Directive (5AMLD) and incorporates FATF recommendations, requiring VASPs to register and comply with AML/KYC obligations. * Markets in Crypto-Assets (MiCA) Regulation: EU regulation with staggered implementation; provisions related to asset-referenced tokens (ARTs) and electronic money tokens (EMTs) became applicable on June 30, 2024, with the remaining provisions for CASPs set to come into full effect on December 30, 2024. A draft implementation law is under consideration. * Draft law proposed in April 2025 by the Ministry of Finance: Aims to introduce a 25% tax on crypto trading profits for residents, effective January 1, 2026.

Considerations

Cryptocurrencies are recognized as a medium of exchange but not legal tender in Slovenia. Income from crypto mining and business activities is subject to income tax. A proposed 25% tax on crypto trading profits (converting crypto to fiat or using it for goods/services) is under consideration, excluding crypto-to-crypto transactions and transfers between a user's own wallets. The evolving regulatory landscape and the lack of a transitional "grandfathering" period under the initial MiCA implementation draft pose challenges for CASPs.

Notes

Slovenia has historically been viewed as crypto-friendly. The AML law has been in force for all crypto-related businesses since 2016 (implementing the 4th AML directive). A draft law implementing MiCA was submitted to the Government for consideration in July 2024. There is a discrepancy regarding a transitional "grandfathering" period under MiCA: the draft law doesn't provide for one, while ESMA indicates Slovenia has opted for a 6-month period. Taxpayers would be required to keep detailed records of their transactions for annual tax returns regarding the new crypto tax proposal.

Detailed Explanation

Individual citizens and residents in Slovenia are legally permitted to buy, sell, and hold cryptocurrencies. The regulatory environment is actively evolving, especially with the forthcoming full implementation of the EU's Markets in Crypto-Assets (MiCA) Regulation. Currently, the Prevention of Money Laundering and Terrorist Financing Act (ZPPDFT-2) governs crypto-assets. This act transposes the EU's 5th Anti-Money Laundering Directive (5AMLD) and incorporates FATF recommendations. Under ZPPDFT-2, Virtual Asset Service Providers (VASPs), including exchanges and custodian wallet providers, are required to register with the Office of the Republic of Slovenia for the Prevention of Money Laundering. These entities are subject to AML/KYC requirements, including customer due diligence, transaction monitoring, and reporting suspicious activities. Cryptocurrencies are not considered legal tender but are recognized as a medium of exchange. Their use in payments is allowed and relatively widespread. According to Chambers and Partners (June 13, 2024), cryptocurrencies are viewed as a medium of exchange rather than a means of payment.

Slovenia is in the process of implementing the EU's MiCA Regulation. The MiCA provisions related to asset-referenced tokens (ARTs) and electronic money tokens (EMTs) became applicable on June 30, 2024. The remaining provisions, particularly those affecting Crypto-Asset Service Providers (CASPs), are set to come into full effect on December 30, 2024. A draft law for implementing MiCA in Slovenia has been in inter-ministerial coordination since February 2024 and was submitted to the Government for consideration in July 2024. Manimama Law Firm noted on August 13, 2024, that the public discussion for the draft law – ZAKON O IZVAJANJU UREDBE (EU) O TRGIH KRIPTOSREDSTEV – lasted until July 3, 2024, and was submitted to the Government on July 30, 2024.

Notably, the current draft does not provide for a transitional "grandfathering" period under Article 143(3) of MiCA. Manimama Law Firm stated on August 13, 2024, that virtual currency service providers must obtain authorization to provide services in accordance with Regulation 2023/1114/EU by December 30, 2024, or cease providing services authorized under Regulation 2023/1114/EU. However, separate information from ESMA (last updated June 2024) indicates Slovenia has opted for a 6-month grandfathering period. Scorechain notes that the Securities Market Agency and the Bank of Slovenia will be the competent authorities for overseeing MiCA's implementation.

Regarding taxation, Slovenia currently has a mixed approach, but this is set to change. Income from cryptocurrency mining and business activities involving crypto is subject to income tax. Capital gains from occasional crypto trading by individuals have largely not been taxed if considered a hobby. A new draft law proposed in April 2025 by the Ministry of Finance aims to introduce a 25% tax on crypto trading profits for residents when they convert crypto to fiat or use it for goods and services. Cointelegraph reported on April 17, 2025, that crypto-to-crypto transactions and transfers between a user's own wallets would be exempt. If passed, this tax is expected to take effect on January 1, 2026, requiring taxpayers to keep detailed records of their transactions for annual tax returns. GoCrypto notes that Slovenia implemented the 4th AML directive in all aspects of crypto business since 2016.

Summary Points

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

Overall Status: Allowed-Regulated

1. Regulatory Bodies and Their Roles:

  • Office of the Republic of Slovenia for the Prevention of Money Laundering:
    • Registers Virtual Asset Service Providers (VASPs).
    • Manages and maintains the register of virtual currency service providers.
  • Securities Market Agency & Bank of Slovenia:
    • Competent authorities for overseeing the implementation of MiCA.

2. Key Legislation and Regulations:

  • Prevention of Money Laundering and Terrorist Financing Act (ZPPDFT-2):
    • Currently the primary national legislation governing crypto-assets.
    • Transposes the EU's 5th Anti-Money Laundering Directive (5AMLD).
    • Incorporates FATF recommendations.
  • Act on Payments Services and Systems:
    • Classifies cryptocurrencies as virtual assets, not financial or monetary instruments.
  • EU's Markets in Crypto-Assets (MiCA) Regulation:
    • Will establish a harmonized regulatory framework for crypto-assets across the EU.
    • Provisions related to ARTs and EMTs became applicable on June 30, 2024.
    • Remaining provisions (affecting CASPs) are set to come into full effect on December 30, 2024.
    • Draft law for implementing MiCA in Slovenia has been submitted to the Government for consideration.

3. Compliance Requirements:

  • For Virtual Asset Service Providers (VASPs):
    • Registration with the Office of the Republic of Slovenia for the Prevention of Money Laundering.
    • Compliance with AML/KYC requirements:
      • Customer due diligence.
      • Transaction monitoring.
      • Reporting suspicious activities.
  • For Crypto-Asset Service Providers (CASPs) after MiCA Implementation:
    • Authorization required by December 30, 2024 (or cease providing services).
    • Note: ESMA indicates a 6-month grandfathering period may apply, conflicting with the current draft law.

4. Taxation:

  • Current Status:
    • Income from cryptocurrency mining and business activities involving crypto is subject to income tax.
    • Capital gains from occasional crypto trading by individuals have largely not been taxed if considered a hobby.
  • Proposed Changes (Effective January 1, 2026, if passed):
    • 25% tax on crypto trading profits for residents when they convert crypto to fiat or use it for goods and services.
    • Crypto-to-crypto transactions and transfers between a user's own wallets would be exempt.
    • Taxpayers would be required to keep detailed records of their transactions for annual tax returns.

5. Notable Restrictions or Limitations:

  • Cryptocurrencies are not considered legal tender.
  • VASPs must register with the Office of the Republic of Slovenia for the Prevention of Money Laundering.
  • CASPs will need authorization under MiCA by December 30, 2024 (subject to potential grandfathering period).

6. Recent Developments or Changes:

  • MiCA Implementation: Slovenia is in the process of implementing MiCA.
    • Draft law submitted to the Government for consideration in July 2024.
    • Discrepancy regarding grandfathering period for CASPs (draft law vs. ESMA information).
  • Proposed Crypto Tax: A new draft law proposes a 25% tax on crypto trading profits, potentially effective January 1, 2026.

Full Analysis Report

Report on Retail_Trading_Status in Slovenia

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 Slovenia are legally permitted to buy, sell, and hold cryptocurrencies. The regulatory environment is evolving, particularly with the upcoming full implementation of the EU's Markets in Crypto-Assets (MiCA) Regulation, but a framework for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) is already in place.

Historically, Slovenia has been viewed as a relatively crypto-friendly nation. Cryptocurrencies are not considered legal tender but are recognized as a medium of exchange, and their use in payments is allowed and relatively widespread. Under the Act on Payments Services and Systems, cryptocurrencies are classified as virtual assets and do not fall under the definition of financial or monetary instruments.

The primary national legislation currently governing crypto-assets is the Prevention of Money Laundering and Terrorist Financing Act (ZPPDFT-2). This act transposes the EU's 5th Anti-Money Laundering Directive (5AMLD) and incorporates FATF recommendations. Under ZPPDFT-2, Virtual Asset Service Providers (VASPs), including exchanges and custodian wallet providers, are required to register with the Office of the Republic of Slovenia for the Prevention of Money Laundering. These entities are subject to AML/KYC requirements, which include customer due diligence, transaction monitoring, and reporting suspicious activities.

Slovenia is in the process of implementing the EU's MiCA Regulation, which will establish a harmonized regulatory framework for crypto-assets across the EU. The MiCA provisions related to asset-referenced tokens (ARTs) and electronic money tokens (EMTs) became applicable on June 30, 2024, with the remaining provisions, particularly those affecting Crypto-Asset Service Providers (CASPs), set to come into full effect on December 30, 2024. A draft law for implementing MiCA in Slovenia has been in inter-ministerial coordination since February 2024 and was submitted to the Government for consideration in July 2024. Notably, the current draft does not provide for a transitional "grandfathering" period under Article 143(3) of MiCA, requiring all CASPs to obtain authorization by December 30, 2024, or cease providing services. However, separate information from ESMA indicates Slovenia has opted for a 6-month grandfathering period. This discrepancy highlights the evolving nature of the implementation. The Securities Market Agency and the Bank of Slovenia will be the competent authorities for overseeing MiCA's implementation.

Regarding taxation, Slovenia currently has a somewhat mixed approach, but this is also set to change. Income from cryptocurrency mining and business activities involving crypto is subject to income tax. However, capital gains from occasional crypto trading by individuals have largely not been taxed if considered a hobby. A significant development is a new draft law proposed in April 2025 by the Ministry of Finance to introduce a 25% tax on crypto trading profits for residents when they convert crypto to fiat or use it for goods and services. Crypto-to-crypto transactions and transfers between a user's own wallets would be exempt. This proposed tax, if passed, is expected to take effect on January 1, 2026. Taxpayers would be required to keep detailed records of their transactions for annual tax returns. This proposal aims to align the taxation of crypto assets with that of other financial instruments.

In summary, retail cryptocurrency trading is permitted in Slovenia. It is regulated primarily through AML/CTF obligations for VASPs, and the regulatory landscape is set to become more comprehensive with the full implementation of MiCA. A new specific tax regime for crypto gains is also in the legislative process.

3. Specific, Relevant Text Excerpts:

  • CMS Expert Guide to Crypto Regulation in Slovenia (July 29, 2024): "As the Markets in Crypto-assets Regulation (“MiCAR”) has not yet entered into force, 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."
  • CMS Expert Guide to Crypto Regulation in Slovenia (July 29, 2024): "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 before starting to provide their services. The register is managed and maintained by the Office of the Republic of Slovenia for the Prevention of Money Laundering."
  • Manimama Law Firm (August 13, 2024) on MiCA implementation: "Draft law – ZAKON O IZVAJANJU UREDBE (EU) O TRGIH KRIPTOSREDSTEV. The public discussion will last until July 03, 2024. On 30 July 2024, the draft law was submitted to the Government for consideration. This Law shall enter into force on the day following its publication in the Official Gazette of the Republic of Slovenia."
  • Manimama Law Firm (August 13, 2024) on MiCA transitional period: "In accordance with Article 143(3) of Regulation 2023/1114/EU, transitional provisions for virtual currency service providers shall not apply. Virtual currency service providers must obtain authorization to provide services in accordance with Regulation 2023/1114/EU by December 30, 2024 or cease to provide services authorized under Regulation 2023/1114/EU."
  • ESMA (List of grandfathering periods, last updated June 2024, though specific date of Slovenia's notification unclear): "Slovenia. 6 months."
  • Cointelegraph (April 17, 2025): "Slovenia's Finance Ministry is considering a possible 25% tax on crypto trading profits for residents in the country under a new draft law now open for public consultation. The bill proposes to tax traders when they sell their cryptocurrency for fiat or pay for goods and services, but crypto-to-crypto and transfers between wallets owned by the same user will be exempt, Slovenia's Finance Ministry said in an April 17 statement."
  • Cointelegraph (April 17, 2025): "If Slovenian lawmakers pass the bill, it will go into effect on Jan. 1, 2026."
  • Chambers and Partners (June 13, 2024): "Cryptocurrencies are not legal tender in the Republic of Slovenia, but it is still legal to pay with them, as they are considered as a medium of exchange in such transactions rather than a means of payment. Consequently, the use of cryptocurrencies in payments is allowed and relatively widespread in Slovenia..."
  • Scorechain (Content likely updated around MiCA implementation dates): "In Slovenia, the Securities Market Agency and the Bank of Slovenia are designated as the competent authorities responsible for overseeing MiCA's implementation."
  • GoCrypto (Undated, context suggests post-2020): "Slovenia was one of the few EU countries which implemented the 4th AML directive in all aspects of crypto business. Therefore, the Slovenian AML law has been in force for all crypto-related businesses since 2016."

4. Direct, Accessible URL Links to Sources:

Web Sources (26)

Sources discovered via web search grounding

Search queries used (7)
  • Slovenia cryptocurrency regulation retail
  • Slovenia crypto trading laws
  • Slovenia AML KYC cryptocurrency
  • Slovenia crypto tax
  • Slovenia financial regulator cryptocurrency statements
  • Slovenia crypto license requirements
  • Slovenia MiCA implementation status
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