With the entry into force of the country’s laws on digital assets, Serbia has begun to regulate the encryption industry. It requires cryptocurrency service providers to obtain licenses and legalize crypto activities including trading and mining.
Serbia begins to regulate cryptocurrency
Serbia’s recently passed “Digital Assets Law” took effect in the government’s official gazette last week. The country’s encryption service providers must comply with the six-month period. Karanovic & Partners explained that the Serbian Parliament has also passed a series of amendments to tax regulations concerning digital assets.
The new law applies to all digital assets, divided into two types: virtual currency and digital tokens. Law firms define digital assets as “digital value records that can be purchased, sold, exchanged, or transferred digitally, and can be used as a medium of exchange or for investment purposes (with some exceptions).” The Serbian Securities Commission and the National Bank of Serbia are tasked with overseeing the cryptocurrency industry.
The law recognizes stablecoins and allows cryptocurrency mining. It also allows the issuance of cryptocurrency. However, for products that do not have a white paper approved by the committee, advertisements are only allowed if they meet the strict conditions stipulated by the law.
Allows for secondary and over-the-counter (OTC) transactions through an organized platform, and can use smart contracts to facilitate such transactions. In addition, encryption services are only allowed after the service provider obtains permission from the authorized institution. However, licensing is not a necessary condition for providing consulting services.
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