Legal Regulation of Cryptocurrencies in Serbia
- August 9, 2024
Introduction
Serbia has enacted the Digital Asset Law, which regulates the legal framework for cryptocurrencies and digital tokens. This law provides a basis for issuing, trading, providing services, and controlling digital assets, ensuring legal certainty and user protection.
Classification of Digital Assets
Digital assets are defined as digital records of value that can be digitally bought, sold, exchanged, or transferred and used as a means of exchange or for investment purposes. Digital assets include:
Virtual Currencies: Digital assets not issued or guaranteed by a central bank or other public authority. They are used as a means of exchange and can be bought, sold, exchanged, transferred, and stored electronically.
Digital Tokens: Digital assets that represent intangible property rights, including the user’s right to certain services.
Issuance of Digital Assets
The issuance of digital assets with all the features of a financial instrument is subject to the laws governing the capital market unless otherwise specified by the Digital Asset Law. Exceptions include digital assets that do not have the features of shares, are not exchangeable for shares, and whose total value does not exceed €3,000,000 in dinar equivalent over 12 months.
Principle of Technological Neutrality
The law applies to all digital assets regardless of the technology on which they are based, including stable digital tokens. This allows for the application of rules and regulations to all forms of digital assets, regardless of the technological foundation.
Prohibitions and Restrictions
Financial Institutions: Banks and other financial institutions under the supervision of the National Bank of Serbia cannot hold digital assets or provide services related to digital assets. An exception is made for banks that can provide cryptographic key storage services.
Restrictions in Business Operations: Virtual currencies cannot be invested in companies but must be converted into money, which can then be used as capital.
Rules for Trading and Services
The provision of services related to digital assets, including trading, must comply with the law. Trading digital assets on trading platforms is only allowed through licensed service providers. Trading includes buying, selling, and exchanging digital assets through licensed platforms, with mandatory reporting and regulation by competent authorities.
Measures Against Manipulation
Market manipulation of digital assets, including fake transactions and spreading false information, is strictly prohibited. Violations of these rules can result in prison sentences and fines. This includes any attempts to deceive investors with false information about the supply, demand, or prices of digital assets.
Jurisdiction and Penalties
The National Bank of Serbia and the Securities Commission play a key role in overseeing and regulating digital assets. They are responsible for issuing licenses, monitoring operations, enforcing laws, and imposing penalties for violations. Fines for legal entities can range from 50,000 to 5,000,000 dinars, depending on the severity of the offense.
Conclusion
The legal regulation of digital assets in Serbia provides a clear and comprehensive framework for issuing, trading, and providing services related to digital assets. Adherence to these laws and regulations is key to legal and secure operations in the digital asset industry.
Note: This text is intended solely for educational purposes and does not constitute legal advice. Before making any legal decisions, it is recommended to consult with a qualified legal advisor and thoroughly research all aspects of digital asset regulation. The author and platform are not responsible for any legal consequences resulting from decisions made based on the information in this text.