Menu
Menu
Menu
Bulgaria currently doesn`t have any specific crypto or fintech legislation but is expected to provide it with growing pressure to implement the MiCA regulation. With MiCA implementation into Bulgarian law, the regulatory framework is going to develop ground on investor protection and market integrity. Bulgaria didn`t regulate cryptocurrency, so is not considered as financial instruments or electronic money, though not illegal. Thus, there is not a formal licensing regime for crypto entities in Bulgaria. 5AMLD defines cryptocurrencies as digital understanding of value not issued or guaranteed by any Central Bank or public authority.
The term “crypto license in Bulgaria” means the additional registration requirement with the National Revenue Agency (NRA) rather than a formal licensing process. This registration allows to provide crypto-related activities, including cryptocurrency exchanges, custodial services, wallet provision, crypto payment solutions and advisory services.
The country determines cryptocurrencies with the European Central Bank’s guidance focusing on the risks and volatility of virtual currencies. In 2018, the Bulgarian national Bank warned of potential price bubbles and extreme volatility. In 2022, the FSC was worried about with unregulated crypto investment funds.
Bulgaria crypto license have number of benefits for businesses in the cryptocurrency sector. Below are key benefits of a crypto license in Bulgaria:
Although cryptocurrency activities in Bulgaria are not explicitly regulated, but certain aspects still fall under existing licensing frameworks and distinguish the following types of crypto license Bulgaria offers:
accepts entities to conduct various crypto-related operations:
crypto-related operations as financial services or related to financial instruments. This license will be useful for:
To provide cryptocurrency services in Bulgaria companies must comply with a set of specific requirements. The key requirements for entities seeking for cryptocurrency license in Bulgaria must fulfill:
To complete application process be ready to prepare a comprehensive set of documents to show compliance with all requirements for a Bulgaria cryptocurrency license.
Below you can familiarize with key application documents and details for obtaining a crypto license Bulgaria:
The process and timeline for obtaining a crypto license in Bulgaria consists of a structured steps . To acquire a Bulgaria crypto exchange license for applicants. Below is a shortlist of the key stages of the process of acquiring Bulgaria crypto exchange license:
1st step is a formation of a Crypto Company in Bulgaria which consists of several procedural stages:
2d step registration of the Company which is consists of:
All steps may take 1–2 weeks for company incorporation and its registration.
3 d step – Notification and Authorization with the National Revenue Agency (NRA)
To perform this step you should comply with next procedures:
All period takes from 2–4 weeks depending on processing times at the NRA.
4th step is opening a Bank account. While it`s not a mandatory step for obtaining the crypto license, but opening a bank account is highly recommended for efficient operational management. It takes approximately 1–2 weeks depending on the bank’s requirements.
5th step is an ongoing compliance consists of:
The total timeline for acquiring a crypto exchange license in Bulgaria usually takes from 4 to 6 weeks. It depends on the efficiency of document submission, regulatory processing times and any optional banking procedures.
The regulatory framework of cryptocurrency licenses in Bulgaria is primarily governed by general financial compliance rules, anti-money laundering (AML) laws.
Crypto-related businesses subject to authorization with the National Revenue Agency (NRA). The European regulation MICA is the first framework with complex structure developed to regulate the crypto industry. MiCA will provide clarity on the legal status of various types of crypto assets, particularly stablecoins and integrate standardized rules for service providers.
MiCA covers the following aspects :
Speaking about impact of the MiCA the Bulgarian Ministry of Finance has proposed a new Law on Crypto-Asset Markets, which aims to regulate the trading of crypto-assets in line with the MiCA.
The bill assigns the Financial Supervision Commission (FSC) as the authority responsible for enforcing MiCA regulations, supervising market participants, issuing licenses and imposing sanctions for violations. Moreover, the European Central Bank (ECB) and the Bulgarian National Bank (BNB) will oversee banking supervision. Their responsibilities extending or withdrawing licenses for credit institutions involved in issuing asset-backed tokens or providing crypto-asset services and approving chief positions in these institutions.
The Bulgarian Ministry of Finance according to Decree № H-9 established the requirement for providers of currencies-cryptocurrency for digital and fiat exchanges and virtual wallet operators storing cryptocurrencies to register with the NRA. This Bulgaria crypto license register aims to reduce the risks and increase transparency of suspicious activities. While this process refers to the authorization of companies involved in cryptocurrency activities often perceive registration with the NRA as same as obtaining a crypto license in Bulgaria.
When the registration with the NRA completed companies receive a certificate often named as a crypto certificate or crypto license only one legal document issued by competent authority in Bulgaria that permits companies to offer crypto services.
Registration with the NRA and compliance to AML regulations ensure for crypto-related operations transparency and the prevention of money laundering without incomprehensible strict financial regulations on crypto assets. The Financial Intelligence Directorate (FID) is a part of the State Agency for National Security (SANS) that is responsible for enforcing AML regulations with European standards.
The current registration process with the NRA acts as a real crypto license aimed to comply with AML/CTF regulations. Its low tax rates simple company formation process and coming adoption of the MiCA regulation ensure significant opportunities for crypto businesses in Bulgaria.
In Bulgaria data protection compliance is strictly regulated under the General Data Protection Regulation (GDPR) is mandatory for all EU countries, including Bulgaria. It sets high standards for the protection of personal data for organizations that process data of EU citizens. Cryptocurrency businesses that process the personal data of EU citizens must comply with legal provisions of data protection such as GDPR and local as Bulgaria's Personal Data Protection Act. Companies storing personal data in cloud systems outside the EU must implement adequate protections in line with GDPR standards and must integrate measures of data protection into their regulatory framework.
Main regulatory bodies in Bulgaria for crypto sector are:
Bulgaria offers a friendly environment for Bulgarian crypto license companies with relatively low tax rates, clear and evolving regulatory framework.
The regulation of cryptocurrency taxation in Bulgaria depends on how the government integrates crypto assets within its financial framework.
Considering taxation in Bulgaria the capital gain from selling cryptocurrencies is subject to personal income tax at a flat rate of 10% for Bulgarian individual residents. If the cryptocurrency trading activity is conducted systematically and serves as the main source of income for the individual investor the gains are taxed as business income at a flat rate of 15%.
As for Bulgarian resident companies (holders of crypto exchange license Bulgaria) any capital gains from the sale of financial assets or exchange of cryptocurrencies are levied at a rate of 10%. This makes Bulgaria an attractive jurisdiction for crypto businesses due to its low corporate tax rate.
A crypto exchange license in Bulgaria attracts with its favorable VAT treatment as the Bulgarian tax authorities consider the exchange of fiat currency for bitcoins and back are VAT-exempted. This VAT exemption contributes to the turnover calculation for VAT registration thresholds and applies specifically to crypto to fiat transactions similarly to foreign exchange transactions.
Crypto sector in Bulgaria isn`t regulated by specific financial laws but may require oversight under other financial licenses governed by Bulgarian authorities and should comply with AML, KYC and consumer protection standards.
No, all process of obtaining a crypto license in Bulgaria can be completed remotely.
Crypto businesses must comply with AML, KYC requirements, customer due diligence, document collection and custody, risk assessment, reporting of suspicious activities to authorities.
InteliumLaw takes a complex approach to ensure legal compliance for crypto sector in Bulgaria. Our basic support includes:
Yes, foreign residents are allowed to incorporate a crypto company in Bulgaria.
A company which has acquired a cryptocurrency license in Bulgaria by the NRA can operate with crypto activities in Bulgaria.
The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.
By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.
The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.
By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.
