Serbia
Retail_Trading_Status
- Analysis ID
- #780
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- Latest
- Created
- 2025-12-12 05:12
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- 2b99281c...
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Executive Summary
Cryptocurrency activities in Serbia are fully legalized and regulated under the Law on Digital Assets, which came into effect in June 2021. The framework divides oversight between the National Bank of Serbia (NBS) for virtual currencies and the Securities Commission for digital tokens. Retail trading is permitted through licensed Virtual Asset Service Providers (VASPs), with several entities actively registered and operating. Capital gains from crypto trading are subject to a 15% tax, with specific incentives for reinvestment into the local economy.
Key Pillars
National Bank of Serbia (NBS) - Primary regulator for virtual currencies and VASP licensing
Securities Commission - Regulator for digital tokens and related services
Law on Digital Assets (2021) - Comprehensive legal framework defining assets, service providers, and issuance
VASP Licensing Regime - Mandatory licensing for exchanges, custodians, and portfolio managers
AML/CFT Compliance - VASPs must adhere to strict anti-money laundering standards aligned with FATF
Landmark Laws
Law on Digital Assets (Zakon o digitalnoj imovini) (Official Gazette of the RS, No. 153/2020) - Enacted: 2021-06-29
- The primary legislation governing the issuance, trading, and provision of services related to digital assets. It distinguishes between 'virtual currencies' and 'digital tokens', establishes the licensing regime for service providers, and sets supervision powers for the NBS and Securities Commission.
- Source
Rulebook on the Register of Virtual Currency Service Providers - Enacted: 2021-06-01
- Details the requirements and procedures for enrolling in the NBS register of licensed crypto service providers.
- Source
Considerations
Capital Gains Tax: A 15% tax applies to profits from the sale of digital assets.
Tax Incentives: A 50% tax exemption is available if capital gains are reinvested into the share capital of a Serbian resident company.
Banking Restrictions: Financial institutions under NBS supervision (banks) are generally prohibited from investing in digital assets or providing crypto services directly, though they may offer cryptographic key custody.
Not Legal Tender: Virtual currencies are not legal tender; payments for goods and services in crypto are restricted unless converted to dinars through a licensed intermediary.
Mining: Mining is legal and explicitly excluded from the definition of financial services, though profits are taxable.
Notes
Serbia's regulatory model is often cited as a regional benchmark. The specific tax exemption for reinvesting crypto gains into local businesses is a unique feature designed to stimulate the domestic startup ecosystem.
Remaining Uncertainties
- The practical ease of banking access for new crypto startups remains a practical hurdle despite legal clarity.
- Future alignment with the EU's MiCA regulation as Serbia progresses on its EU accession path.
Detailed Explanation
Detailed Explanation
Cryptocurrency activities in Serbia are fully legalized and regulated, establishing a clear and comprehensive framework for the digital asset sector. The cornerstone of this framework is the Law on Digital Assets (Zakon o digitalnoj imovini), which came into effect on June 29, 2021. This primary legislation provides a full legalization of the market by defining key asset classes—distinguishing between 'virtual currencies' and 'digital tokens'—and establishing a mandatory licensing regime for Virtual Asset Service Providers (VASPs), including exchanges, custodians, and portfolio managers. Regulatory oversight is divided between two key bodies: the National Bank of Serbia (NBS) acts as the primary regulator for virtual currencies and VASP licensing, while the Securities Commission oversees digital tokens and related services. All VASPs must obtain a license and adhere to strict anti-money laundering and counter-terrorist financing (AML/CFT) standards aligned with FATF recommendations, as detailed in supporting regulations like the Rulebook on the Register of Virtual Currency Service Providers enacted on June 1, 2021. The framework also explicitly legalizes cryptocurrency mining, excluding it from the definition of financial services. From a tax perspective, capital gains from crypto trading are subject to a 15% tax, but a unique 50% tax exemption is available if profits are reinvested into the share capital of a Serbian resident company, a policy designed to stimulate the local startup ecosystem. However, the regulatory environment includes important restrictions. Virtual currencies are not recognized as legal tender, meaning payments for goods and services in crypto are restricted unless converted to Serbian dinars through a licensed intermediary. Furthermore, traditional financial institutions under NBS supervision, such as banks, are generally prohibited from investing in digital assets or providing crypto services directly, though they are permitted to offer cryptographic key custody services. Serbia's structured and proactive approach, blending clear regulation with specific economic incentives, positions it as a regional benchmark for cryptocurrency governance.
Summary Points
I. Regulatory Status
* Allowed-Regulated: Cryptocurrency activities are fully legalized and regulated under a comprehensive national framework.
* Retail trading is permitted through licensed entities.
II. Key Regulatory Bodies
* National Bank of Serbia (NBS):
* Primary regulator for virtual currencies.
* Oversees the licensing and supervision of Virtual Asset Service Providers (VASPs).
* Securities Commission:
* Regulator for digital tokens and related services.
III. Important Legislation
* Law on Digital Assets (Zakon o digitalnoj imovini) (Official Gazette of the RS, No. 153/2020):
* Enacted on 2021-06-29.
* The primary legislation governing issuance, trading, and service provision.
* Defines 'virtual currencies' and 'digital tokens' and establishes the VASP licensing regime.
* Rulebook on the Register of Virtual Currency Service Providers:
* Enacted on 2021-06-01.
* Details requirements and procedures for enrollment in the NBS register of licensed providers.
IV. Compliance Requirements
* VASP Licensing: Mandatory licensing for exchanges, custodians, and portfolio managers.
* AML/CFT: VASPs must adhere to strict anti-money laundering and counter-terrorist financing standards aligned with FATF.
* Taxation:
* Capital gains from the sale of digital assets are subject to a 15% tax.
* A 50% tax exemption is available if capital gains are reinvested into the share capital of a Serbian resident company.
V. Notable Restrictions or Limitations
* Not Legal Tender: Virtual currencies are not legal tender; payments in crypto for goods/services are restricted unless converted to dinars via a licensed intermediary.
* Banking Restrictions: Financial institutions under NBS supervision (e.g., banks) are generally prohibited from investing in digital assets or providing crypto services directly. They may, however, offer cryptographic key custody.
VI. Recent Developments or Notes
* Serbia's regulatory model is often cited as a regional benchmark.
* The tax exemption for reinvesting crypto gains into local businesses is a unique feature designed to stimulate the domestic startup ecosystem.
* Cryptocurrency mining is legal and explicitly excluded from the definition of financial services, though profits are taxable.
Full Analysis Report
Full Analysis Report
Serbia has established itself as one of the few jurisdictions in the Balkans with a comprehensive and operational regulatory framework for digital assets. The 'Law on Digital Assets', adopted in late 2020 and effective from June 29, 2021, provides legal certainty by categorizing digital assets into 'virtual currencies' (regulated by the National Bank of Serbia) and 'digital tokens' (regulated by the Securities Commission). This dual-regulator approach allows for specialized oversight depending on whether the asset functions as a currency or a financial instrument.
The licensing regime is active and enforced. Entities wishing to provide services such as exchange, custody, or portfolio management must obtain a license and be listed in the Register of Virtual Currency Service Providers. As of late 2025, the National Bank of Serbia has issued licenses to multiple entities, including 'MCM 965 d.o.o.' (operating as ECD), 'VESCON d.o.o.' (operating as crypto12), and 'AX CRYPTO d.o.o.' (licensed in June 2025). The existence of these active licenses confirms the 'Allowed-Regulated' status, distinguishing Serbia from 'Gray-Zone' jurisdictions where frameworks exist only on paper.
Retail investors can legally buy, sell, and hold cryptocurrencies through these licensed platforms. The government has integrated crypto into the tax system, applying a 15% capital gains tax on profits. Notably, the law includes a progressive incentive mechanism: individuals who reinvest their crypto profits into the equity of Serbian companies are eligible for a 50% reduction in capital gains tax, signaling a strategic intent to channel crypto wealth into the broader local economy.
Despite the progressive framework, the banking sector remains cautious due to strict risk management rules. While banks are not banned from servicing crypto companies, they are prohibited from holding digital assets on their own balance sheets. This separation ensures financial stability while allowing the crypto sector to develop independently. The use of crypto for direct payments is restricted; transactions must typically be settled in Serbian Dinars, often facilitated by payment processors that convert crypto to fiat at the point of sale.
Serbia has established itself as one of the few jurisdictions in the Balkans with a comprehensive and operational regulatory framework for digital assets. The 'Law on Digital Assets', adopted in late 2020 and effective from June 29, 2021, provides legal certainty by categorizing digital assets into 'virtual currencies' (regulated by the National Bank of Serbia) and 'digital tokens' (regulated by the Securities Commission). This dual-regulator approach allows for specialized oversight depending on whether the asset functions as a currency or a financial instrument. The licensing regime is active and enforced. Entities wishing to provide services such as exchange, custody, or portfolio management must obtain a license and be listed in the Register of Virtual Currency Service Providers. As of late 2025, the National Bank of Serbia has issued licenses to multiple entities, including 'MCM 965 d.o.o.' (operating as ECD), 'VESCON d.o.o.' (operating as crypto12), and 'AX CRYPTO d.o.o.' (licensed in June 2025). The existence of these active licenses confirms the 'Allowed-Regulated' status, distinguishing Serbia from 'Gray-Zone' jurisdictions where frameworks exist only on paper. Retail investors can legally buy, sell, and hold cryptocurrencies through these licensed platforms. The government has integrated crypto into the tax system, applying a 15% capital gains tax on profits. Notably, the law includes a progressive incentive mechanism: individuals who reinvest their crypto profits into the equity of Serbian companies are eligible for a 50% reduction in capital gains tax, signaling a strategic intent to channel crypto wealth into the broader local economy. Despite the progressive framework, the banking sector remains cautious due to strict risk management rules. While banks are not banned from servicing crypto companies, they are prohibited from holding digital assets on their own balance sheets. This separation ensures financial stability while allowing the crypto sector to develop independently. The use of crypto for direct payments is restricted; transactions must typically be settled in Serbian Dinars, often facilitated by payment processors that convert crypto to fiat at the point of sale.
Source Evidence
Primary and secondary sources cited in this analysis
"The Law governs the issuance and secondary trading in digital assets in the Republic of Serbia, provision of digital asset services... and supervision over the application of the Law."
"List of licensed providers: VESCON DOO BEOGRAD, MCM 965 D.O.O. BEOGRAD, AX CRYPTO DOO BEOGRAD"
"The National Bank of Serbia grants the licence for the provision of virtual currency services."
"Sale or other transfer against consideration of digital assets by individual taxpayers will be subject to capital gains tax at the rate of 15%."
"2022 NBS Licence. 2023 Securities Comission Licence."
Web Sources (5)
Sources discovered via web search grounding
Search queries used (5)
- Serbia crypto tax capital gains
- Serbia Law on Digital Assets effective date
- National Bank of Serbia virtual currency service providers list
- Securities Commission Serbia register of digital asset service providers
- ECD exchange Serbia license
https://milosevic-law.com/providers-of-services-related-to-digital-assets-who-are-they/
https://thebanks.eu/list-of-vasps/Serbia
https://www.nbs.rs/en/ciljevi-i-funkcije/nadzor-nad-finansijskim-institucijama/digital-imo/reg_di/resenja/
https://freemanlaw.com/cryptocurrency/serbia/
https://gurcanpartners.com/cryptocurrency-regulations-in-serbia/