Slovakia’s Cryptocurrency Regulation: A Comprehensive Guide

Basic price of incorporation the company with VASP authorization in Slovakia starts from €10,000

Unlocking opportunities for cryptocurrency regulation in Slovakia

Acquiring a license in Slovakia grants investors access to the Slovakian cryptocurrency market and a possibility to start their product in Europe. The country is interesting as a strategic location due to its geographical position within Europe and its potential as an emerging market.

Slovakia is a pioneer in recognizing VASPs and has made the registration process variable

Step by step description

Step 1 – Initial Setup:

  • Initiating a preliminary project assessment;
  • Gathering crucial KYC data and a detailed business description;
  • Preparing the power of attorney.

Step 2 – Company Registration:

  • Translating the power of attorney into Slovakian and notarizing the corporate documents;
  • Facilitating the notarial process for the company's official registration;
  • Incorporating the company's data into the commercial register.

Step 3 – Preparing for Regulatory Compliance:

  • Preparation of AML/KYC policies to align with the client company's cryptocurrency activities;
  • Recruitment and education of a local Director/AML officer for the company;
  • Educating the officer on regulatory reporting and facilitating registration with the Slovakian Financial Intelligence Unit (FIU).
Duration: 3 weeks

Step 4 – Opening B2B & C2B corporate accounts:

  • Initial evaluation and identification of a suitable Financial Institution for corporate account setup;
  • Preparation of notarized corporate documents required for the account opening process;
  • Early discussions with the payment institution and continuous assistance to the client during the account opening procedure.
Duration: 2-3 weeks

Understanding Slovakian Requirements

Slovakia is a country with a stable economy and a high standard of living. In March 2018, Slovakia passed laws on cryptocurrency and became one of the pioneers of Virtual Asset Service Providers (VASPs) recognition in the EU. VASP licenses in Slovakia are classified into the following categories based on the company's type of commercial activity:

  • intermediation of cryptocurrency exchange licenses allows the firm to exchange virtual assets into fiat and vice versa, as well as virtual assets into virtual assets for a fee;
  • maintenance and storage of funds on virtual assets license applies for companies introducing wallets for virtual assets storage, creation of encrypted client keys, as well as their storage.
  • Slovakia provides options for obtaining a VASP license for intermediation of cryptocurrency exchange licenses and maintenance and storage of funds on virtual assets

    A VASP license requires a business plan, a minimum share capital, and adherence to AML/KYC regulations

    Requirements for VASP registration

    To get a VASP license and operate in Slovakia as a VASP, some compulsory requirements must be met:

    • a detailed business plan;
    • €5,000 - minimum authorized capital;
    • apostilled copies of documents of all owners, founders, employees;
    • owners and directors of the company must have an impeccable reputation and confirm this with an appropriate certificate;
    • document confirming the place of residence (registration from local authorities or utility bill);
    • unique company name (three variants);
    • corporate bank account.

    Taxes in Slovakia

    Standard tax rates in Slovakia are the following:

  • Corporate Income Tax (CIT) - 21%, a reduced tax rate is 15%;
  • Personal Income Tax (PIT) - 19 - 25%;
  • Value Added Tax (VAT) - 20%, a reduced tax rate is 10%.
  • Slovakia provides lots of tax reliefs (up to 200% discount for some projects) and we can help with it

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    The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.