Serbia legalised the issuance and trading of digital assets under a new law that came into force two days ago
Serbia has revised its stance on cryptocurrencies and now permits the issuance and trading of digital assets within the country. The new law entered into force on December 29 and allows residents to trade cryptocurrencies.
The Serbian legislator announced the draft law in October and approved it at the end of last month. The “Digital Assets Act” officially came into effect on Tuesday and will be fully implemented six months after that date.
Serbia was not always supportive of cryptocurrencies. Six years ago, the National Bank of Serbia (NBS) declared that Bitcoin would not be accepted as legal tender in the country. However, Serbia appears to have shifted policy and now aims to support the growth of the crypto sector.
Under the new law, domestic digital asset service providers may operate once they obtain authorisation from the relevant regulator. The NBS and the Securities Commission of Serbia will supervise the crypto sector and enforce the law.
Digital assets may be issued in the country with or without an approved whitepaper. However, promoters who do not have an approved whitepaper cannot advertise their digital assets in Serbia. The law also restricts the number of such assets that may be offered to the public.
Crypto exchanges must hold a licence to operate
The new Serbian law also covers cryptocurrency trading. Digital asset platforms must secure an operating licence. The law allows secondary trading of cryptocurrencies issued in Serbia, the use of smart contracts for secondary trading, and over-the-counter (OTC) trading.
The regulation does not apply to digital transactions carried out within a limited network of people who accept digital assets as rewards or loyalty incentives. It also does not apply to miners who acquire digital assets through mining.
Financial institutions supervised by the NBS are not permitted to engage with digital assets except to store cryptographic keys. These institutions are prohibited from converting their assets into virtual currencies or instruments linked to virtual assets.
They are also barred from providing services related to digital assets or participating in businesses that offer such services. Digital asset providers in Serbia must apply for authorisation from the regulator within six months prior to the law’s implementation.
This new law arrives as Serbia and other Eastern European countries, such as Romania and Bulgaria, experience a tech boom. In Serbia, the tech sector now accounts for more than 6% of total GDP.
Translated by Carolane de Palmas