The digital asset market in Serbia is recording steady growth, and an increasing number of domestic and foreign businesses are considering the establishment or expansion of cryptocurrency and other digital asset exchange platforms. However, before commencing operations, every such platform must complete the demanding procedures for obtaining a licence or registration from the competent authorities. This text is informational in nature and does not replace individual legal advice.
The Digital Assets Act — the Foundation of the Serbian Legal Framework
The Republic of Serbia adopted the Digital Assets Act (Zakon o digitalnoj imovini, Official Gazette of the RS, No. 153/2020; in force as of 30 June 2021), becoming one of the first countries in the region with a comprehensive legal framework for this area. The Act defines the concepts of virtual currency and digital token as the two fundamental forms of digital assets, distinguishes between different categories of service providers, and establishes the jurisdiction of the Securities Commission (Komisija za hartije od vrednosti – KHOV) and the National Bank of Serbia (Narodna banka Srbije – NBS) as regulatory bodies.
Under the Act, a digital asset exchange platform falls within the category of digital asset service providers (pružaoci usluga povezanih sa digitalnom imovinom – PUDI). In order to provide services lawfully, such a platform must obtain a licence from either KHOV or NBS, depending on whether the services relate to digital assets that qualify as financial instruments or to virtual currencies, which do not.
Who Must Hold a Licence and for Which Services
The Act sets out an exhaustive list of services for which a licence is required. Providing exchange, purchase, sale, or transfer services for digital assets, as well as operating an exchange platform, are explicitly listed as activities subject to licensing. Without the requisite licence, conducting these activities is prohibited and may result in the imposition of substantial financial penalties; the Act also provides for criminal liability for the unauthorised provision of digital asset services.
The Act distinguishes between virtual currencies (such as Bitcoin or Ether in their primary function) and digital tokens that may carry the attributes of a financial instrument. Platforms dealing with the former fall under the supervision of NBS, while KHOV is competent for digital assets with the characteristics of a financial instrument.
Licence Application Procedure in Serbia
The licence application is submitted to the competent regulator (KHOV or NBS) together with extensive documentation. The following is typically required:
- a detailed business plan describing the intended services and technological infrastructure;
- an anti-money laundering and counter-terrorist financing programme (AML/CFT programme);
- evidence of the prescribed minimum capital (the amount varies depending on the type of service);
- information on the beneficial owners and persons managing the platform, together with evidence of their professional qualifications and absence of criminal convictions;
- procedures for risk management, safeguarding client assets, and handling complaints.
The regulator assesses the application and may request supplementary information or amendments before issuing a decision. The entire process may take several months, making timely and thorough preparation of documentation critically important.
Ongoing Obligations Following the Grant of a Licence
Obtaining a licence is not the end of the compliance process — it is merely the beginning of ongoing obligations. Licence holders are required to:
- continuously apply AML/CFT procedures and conduct customer identification (KYC – Know Your Customer);
- maintain accurate records of all transactions and retain them for the statutory period;
- report to the regulator on their operations on a regular basis;
- implement technical and organisational measures for the protection of user data;
- in the event of cessation of services, carry out the statutory procedure for the protection of users.
Breach of these obligations may lead to a temporary suspension of operations, revocation of the licence, or the initiation of misdemeanour proceedings.
The EU’s MiCA Regulation — What the New European Framework Introduces
The Markets in Crypto-Assets Regulation — MiCA (Regulation (EU) 2023/1114) — has been fully applicable in the European Union since 30 December 2024. MiCA introduces a unified, comprehensive framework for all categories of crypto-assets and crypto-asset service providers (CASPs) across the EU.
Under MiCA, every CASP wishing to operate on the EU internal market must obtain authorisation from the competent authority of one Member State. An authorised CASP may then provide services in all EU Member States through the passporting mechanism, significantly facilitating cross-border expansion.
MiCA’s requirements are, in certain respects, more stringent than those of the Serbian Digital Assets Act. Particularly noteworthy are the requirements relating to governance structure, remuneration policies, liability insurance, conflict-of-interest management procedures, and transparent client disclosure. MiCA also explicitly regulates stablecoins (as distinct categories of tokens), which the Serbian Act does not address in the same manner.
Serbia and the Path Towards Harmonisation with EU Standards
Serbia is a candidate for EU membership and has formally committed to aligning its domestic legislation with EU law. This means that, in the coming years, a reform of the Digital Assets Act may be expected with a view to closer alignment with MiCA standards. Businesses planning long-term operations in this field should monitor this legislative development.
Already at this stage, companies planning to operate simultaneously in both Serbia and the EU should assess the requirements of both frameworks and proactively build a compliant internal structure, as subsequent adaptation may prove significantly more costly.
Frequently Asked Questions (FAQ)
Can a foreign company obtain a licence for a crypto platform in Serbia? Yes. The Digital Assets Act does not exclude foreign business entities, but it requires the establishment of a domestic company or branch that will hold the licence. The beneficial owners and management must satisfy the conditions prescribed by law.
Do I need a licence if I am only developing software for a crypto platform? The mere provision of software services, without directly handling users’ digital assets or conducting exchange in one’s own name, does not as a rule require a licence. However, the specific circumstances of each case require careful legal analysis, as the details of the business model may be determinative.
How long does the licence application procedure take? The Act prescribes certain time limits for the regulator’s decision, but the actual duration depends on the complexity of the application and any need for supplementary documentation. In practice, preparation typically begins at least six to nine months before the planned commencement of services.
What happens if a platform operates without a licence? The Act provides for penalty liability for providing services without a licence — including criminal liability for the unauthorised provision of digital asset services — which may result in financial penalties and compulsory cessation of operations. In addition, transactions conducted without a licence may be subject to further legal consequences.
Conclusion
Obtaining a licence for a digital asset exchange platform in Serbia requires thorough preparation, adequate resources, and detailed knowledge of the legislative framework. Given the dynamic development of regulation at both the domestic and European level, early legal support is not a luxury — it is a necessity.
Schedule a consultation with our team so that we may jointly assess your business model and develop a compliance strategy tailored to your specific needs.
Sources: – https://www.paragraf.rs/propisi/zakon_o_digitalnoj_imovini.html – https://www.esma.europa.eu/policy-activities/crypto-assets/mica-package – https://www.eustart.com/mi-ca-regulation-eu/
