North Macedonia
Retail_Trading_Status
- Analysis ID
- #749
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- Created
- 2025-12-12 04:57
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- c40eff8a...
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Executive Summary
Retail cryptocurrency trading in North Macedonia operates in a legal gray zone; while buying, selling, and holding digital assets is not explicitly illegal, the sector lacks a comprehensive regulatory framework beyond basic anti-money laundering (AML) requirements. The National Bank of the Republic of North Macedonia (NBRM) has repeatedly issued warnings that crypto assets are not legal tender and are unregulated, leading many local banks to block related transactions. Although a 2022 amendment to the AML law introduced a mandatory registration requirement for Virtual Asset Service Providers (VASPs) with the Financial Intelligence Office, a full licensing regime aligning with EU standards (MiCA) is still in the drafting phase and expected around 2025-2026.
Key Pillars
Financial Intelligence Office (FIO) - Primary supervisory body for AML/CFT compliance for crypto assets.
National Bank of the Republic of North Macedonia (NBRM) - Issues warnings and oversees the banking sector's interaction with crypto.
Mandatory VASP Registration - Crypto service providers must register with the FIO for AML monitoring.
Cash Transaction Limits - Crypto-related cash transactions are capped at EUR 500 to prevent money laundering.
Capital Gains Tax - Profits from crypto trading are subject to a 10% tax rate.
Landmark Laws
Law on Prevention of Money Laundering and Financing of Terrorism (Amended) (Official Gazette No. 151/22) - Enacted: 2022-07-12
- Defined 'virtual assets' and 'virtual asset service providers' (VASPs) for the first time. Imposed AML/CFT obligations on VASPs, including the requirement to register with the Financial Intelligence Office and conduct customer due diligence. Prohibited the use of anonymity-enhancing coins.
- Source
Law on Personal Income Tax (Article 11, Paragraph 3)
- Governs the taxation of capital gains, which is interpreted to include profits from the sale of cryptocurrencies at a flat rate of 10%.
Considerations
Banking Blockades: Many local banks refuse to process transfers to/from crypto exchanges due to compliance risks and NBRM warnings.
No Consumer Protection: Investors have no legal recourse or deposit insurance for losses incurred on crypto platforms.
Future Regulation: The government is drafting a new law to align with the EU's Markets in Crypto-Assets (MiCA) regulation, expected to introduce full licensing by 2025-2026.
Taxation: Crypto trading profits are taxable as capital gains (10%), but reporting mechanisms can be unclear.
Cash Restrictions: Strict limits on using cash to buy crypto (max EUR 500) to combat the gray economy.
Notes
The 'Gray-Zone' status is heavily influenced by the disconnect between the AML law (which recognizes VASPs) and the banking sector (which often debanks them). While technically 'Allowed' under AML rules, the lack of a licensing regime and operational friction justifies the 'Gray-Zone' classification over 'Allowed-Regulated'.
Remaining Uncertainties
- The exact timeline for the adoption of the MiCA-aligned digital asset law.
- The completeness and public accessibility of the FIO's VASP register.
- Specific criteria used by local banks to block or allow crypto-related transactions.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading in North Macedonia operates in a legal gray zone. While the activity is not explicitly illegal, it exists without a comprehensive regulatory framework, creating significant operational uncertainty. The primary legal recognition stems from the 2022 amendment to the Law on Prevention of Money Laundering and Financing of Terrorism (Official Gazette No. 151/22, enacted July 12, 2022), which for the first time defined 'virtual assets' and 'virtual asset service providers' (VASPs). This law mandates that VASPs register with the Financial Intelligence Office (FIO) and comply with anti-money laundering and counter-terrorist financing (AML/CFT) obligations, including customer due diligence and a prohibition on anonymity-enhancing coins. However, this AML-focused registration is not a full operational license, and the sector lacks specific rules for consumer protection, market conduct, or prudential requirements for service providers. The National Bank of the Republic of North Macedonia (NBRM) consistently warns that crypto assets are not legal tender and are unregulated, a stance that heavily influences the domestic banking sector. Consequently, many local banks block transactions to and from cryptocurrency exchanges, creating a major practical barrier despite the technical allowance under AML law. Profits from cryptocurrency trading are subject to capital gains tax at a rate of 10%, as governed by the Law on Personal Income Tax (Article 11, Paragraph 3), though reporting mechanisms remain unclear for many investors. To combat money laundering and the gray economy, strict cash transaction limits are enforced, capping cash purchases of crypto at EUR 500. The government is actively working to move beyond this gray zone by drafting new legislation intended to align with the European Union's Markets in Crypto-Assets (MiCA) regulation, with a full licensing regime expected around 2025-2026. Until this framework is enacted, the disconnect between the permissive AML registration and the restrictive banking environment solidifies the gray-zone status.
Summary Points
I. Regulatory Status
* Gray-Zone: Retail cryptocurrency trading is not explicitly illegal but operates without a comprehensive regulatory framework.
* The sector is recognized only under Anti-Money Laundering (AML) rules, with a full licensing regime still in development.
II. Key Regulatory Bodies
* Financial Intelligence Office (FIO): The primary supervisory body for AML/CFT compliance for crypto assets and Virtual Asset Service Providers (VASPs).
* National Bank of the Republic of North Macedonia (NBRM): Issues public warnings that crypto assets are not legal tender and are unregulated; its stance influences banking sector behavior.
III. Important Legislation
* Law on Prevention of Money Laundering and Financing of Terrorism (Amended) (Official Gazette No. 151/22, enacted July 12, 2022):
* First legal act to define 'virtual assets' and 'virtual asset service providers' (VASPs).
* Imposes AML/CFT obligations on VASPs, including mandatory registration with the FIO and customer due diligence.
* Prohibits the use of anonymity-enhancing cryptocurrencies.
* Law on Personal Income Tax (Article 11, Paragraph 3):
* Governs taxation of capital gains, interpreted to include profits from cryptocurrency trading.
IV. Compliance Requirements
* Mandatory VASP Registration: All virtual asset service providers must register with the Financial Intelligence Office (FIO) for AML monitoring.
* AML/CFT Obligations: Registered VASPs must perform customer due diligence and report suspicious transactions.
* Tax Compliance: Profits from cryptocurrency trading are subject to a 10% capital gains tax; individuals are responsible for declaring and paying this tax.
V. Notable Restrictions or Limitations
* Banking Blockades: Many local banks, influenced by NBRM warnings, refuse to process transfers to or from cryptocurrency exchanges, creating significant operational friction.
* Cash Transaction Limits: To prevent money laundering, cash transactions for purchasing crypto are capped at a maximum of EUR 500.
* No Consumer Protection: Investors have no legal recourse or deposit insurance for losses incurred on cryptocurrency platforms due to the lack of a comprehensive regulatory framework.
VI. Recent Developments or Notes
* Future Regulation: The government is drafting a new law to fully align with the EU's Markets in Crypto-Assets (MiCA) regulation.
* This is expected to introduce a complete licensing regime for crypto service providers.
* The new framework is anticipated to be implemented around 2025-2026.
* The current 'Gray-Zone' status is defined by the tension between the permissive AML registration and the restrictive, risk-averse actions of the traditional banking sector.
Full Analysis Report
Full Analysis Report
North Macedonia currently maintains a 'Gray-Zone' status regarding cryptocurrency regulation. While there is no explicit ban criminalizing the possession or trading of virtual assets, the regulatory environment is incomplete and restrictive. The National Bank of the Republic of North Macedonia (NBRM) has consistently maintained that cryptocurrencies are not legal tender and has warned citizens of the high risks involved, including the lack of any protection mechanisms. Consequently, the practical reality for retail traders is challenging, as domestic banks frequently block transactions to known crypto exchanges to avoid compliance risks.
The most significant regulatory development occurred in July 2022 with the amendment of the Law on Prevention of Money Laundering and Financing of Terrorism. This legislation formally defined 'virtual assets' and 'virtual asset service providers' (VASPs), bringing them under the purview of the Financial Intelligence Office (FIO). Under this law, entities providing crypto services must register with the FIO, implement Know Your Customer (KYC) procedures, and report suspicious transactions. However, this registration is strictly for AML monitoring and does not constitute a prudential license that grants rights to operate a financial market or offer investment services.
Despite the AML framework, a comprehensive licensing regime for crypto exchanges remains absent. Government officials have announced plans to introduce a dedicated law on digital assets that aligns with the European Union's Markets in Crypto-Assets (MiCA) regulation. This future legislation, expected to be finalized between 2025 and 2026, aims to establish clear licensing requirements, capital standards, and consumer protection rules. Until this law is enacted, the sector operates in a transitional phase where it is 'tolerated' but not fully 'regulated' in a commercial sense.
Taxation is another key aspect of the current environment. The Public Revenue Office considers gains from cryptocurrency trading as capital gains, subject to a flat 10% tax rate. Traders are required to self-report these gains in their annual tax returns. However, the lack of specific guidance on calculating cost basis and the informal nature of many transactions complicate compliance. Furthermore, the 2022 AML law introduced a strict cash transaction limit of EUR 500 for virtual assets, effectively forcing larger transactions into the banking system, which, paradoxically, is often hostile to such transfers.
North Macedonia currently maintains a 'Gray-Zone' status regarding cryptocurrency regulation. While there is no explicit ban criminalizing the possession or trading of virtual assets, the regulatory environment is incomplete and restrictive. The National Bank of the Republic of North Macedonia (NBRM) has consistently maintained that cryptocurrencies are not legal tender and has warned citizens of the high risks involved, including the lack of any protection mechanisms. Consequently, the practical reality for retail traders is challenging, as domestic banks frequently block transactions to known crypto exchanges to avoid compliance risks. The most significant regulatory development occurred in July 2022 with the amendment of the Law on Prevention of Money Laundering and Financing of Terrorism. This legislation formally defined 'virtual assets' and 'virtual asset service providers' (VASPs), bringing them under the purview of the Financial Intelligence Office (FIO). Under this law, entities providing crypto services must register with the FIO, implement Know Your Customer (KYC) procedures, and report suspicious transactions. However, this registration is strictly for AML monitoring and does not constitute a prudential license that grants rights to operate a financial market or offer investment services. Despite the AML framework, a comprehensive licensing regime for crypto exchanges remains absent. Government officials have announced plans to introduce a dedicated law on digital assets that aligns with the European Union's Markets in Crypto-Assets (MiCA) regulation. This future legislation, expected to be finalized between 2025 and 2026, aims to establish clear licensing requirements, capital standards, and consumer protection rules. Until this law is enacted, the sector operates in a transitional phase where it is 'tolerated' but not fully 'regulated' in a commercial sense. Taxation is another key aspect of the current environment. The Public Revenue Office considers gains from cryptocurrency trading as capital gains, subject to a flat 10% tax rate. Traders are required to self-report these gains in their annual tax returns. However, the lack of specific guidance on calculating cost basis and the informal nature of many transactions complicate compliance. Furthermore, the 2022 AML law introduced a strict cash transaction limit of EUR 500 for virtual assets, effectively forcing larger transactions into the banking system, which, paradoxically, is often hostile to such transfers.
Source Evidence
Primary and secondary sources cited in this analysis
"Providers of services related to virtual assets are obliged to notify the Administration that they are carrying out activities prescribed by this Law within 30 days... The Authority shall maintain and keep a Register of Service Providers Related to Virtual Assets."
"Cryptoassets are not a legal tender in our country... Investing in cryptoassets is considered high risk."
"The law establishes obligations for service providers related to virtual assets to prevent money laundering... trading of virtual assets with cash will be allowed only in the amount of up to EUR 500."
"North Macedonia currently lacks a dedicated crypto law, but general financial and anti-money laundering (AML) rules apply... Crypto trading is conducted freely but mostly through offshore exchanges."
"Cryptocurrency in North Macedonia currently operates in a legal gray zone, meaning it is not illegal but remains largely unregulated."
Web Sources (6)
Sources discovered via web search grounding
Search queries used (9)
- North Macedonia crypto trading legality
- North Macedonia crypto tax capital gains
- North Macedonia Law on Prevention of Money Laundering virtual assets
- National Bank of the Republic of North Macedonia crypto official statement
- North Macedonia cryptocurrency regulation 2024 2025
- Is Binance legal in North Macedonia
- North Macedonia banks blocking crypto transactions official
- "Financial Intelligence Office" North Macedonia crypto register
- North Macedonia Financial Intelligence Office "Register of Service Providers Related to Virtual Assets"
https://www.lightspark.com/knowledge/is-crypto-legal-in-macedonia
https://ufr.gov.mk/wp-content/uploads/2020/05/Law-on-the-Prevention-of-Money-Laundering-and-Financing-of-Terrorism-consolidated.pdf
https://repozitorij.forenzika.unist.hr/islandora/object/forenzikast%3A488/datastream/FILE0/view
https://koha.mk/en/mbi-30-mije-persona-kane-kriptovaluta-ne-maqedonine-e-veriut-por-pa-kornize-ligjore/
https://blog.mexc.com/wiki/is-crypto-legal-in-north-macedonia/
https://coinfomania.com/cryptocurrency-regulations-in-north-macedonia/