How to obtain a cryptocurrency license in Slovakia

Regulation of the cryptocurrency market is constantly becoming stricter. Nowadays jurisdictions impose high regulatory and risk management requirements on virtual asset service providers.

Despite this, we always manage to find a solution that suits the client. All the time our team provides research of the market and regulations on various markets to find the best jurisdiction. Not so long ago we have made the global overview of the VASP regulation in EEA and ready to share information with our future and existing clients. Today we will look at the features of obtaining a cryptocurrency license in Romania.

Tax Summary:

  1. Personal income tax – from 19 to 25%
  2. Corporate income tax – from 15 to 21% 

What law/s governs VASP activities?

  1. Act No. 297/2008 (Prevention of legalization of profits derived from criminal activities and prevention of terrorism financing) (“AML act“)

What activities are included in VASP services?

According to Article 5 of the Anti-Money Laundering Law, VASPs are classified as follows:

  1. Providing services as a virtual currency wallet service provider.
  2. Providing services as a virtual currency exchange service provider.

However, this act does not define the activities carried out by these categories of VASPs.

Who is the VASP regulator?

  1. Finančná spravodajská jednotka (Slovakian Financial intelligence Unit; “SFIU“)
  2. The National Bank of Slovakia (“NBS“)
  3. Trade Licensing Office

What is the procedure for registering a VASP for a local company?

To legally provide cryptocurrency services in Slovakia you need to:

  1. Establish a local company (e.g. LLC with a minimum share capital of 5,000 euros).
  2. Have a local registered address (can be physical or virtual).
  3. At least one shareholder or director must be Slovak or a person who has permanent residence in the EEA.
  4. Submit an application to the Trade Licensing Office, which must include the following information and attached documents: AML documentation, document proving permanent residence of at least one employee, information about AML officer (it can be a person who has permanent residence), proof of company registration (statutory documents), proof of local registered address, proof of no criminal record for directors and shareholders, a detailed and realistic business plan must also be provided.

All documents must be in Slovak.

Is there any specific authorization required for a VASP from another EU member state to provide services in this jurisdiction?

VASPs from another EU member are not free to offer their services in Slovakia. Such a VASP must have a branch office in Slovakia, the rest of the procedure is the same as for the registration of a local company

What is the liability for the activities of a VASP from another EU member state without local registration/authorization in this jurisdiction?

The Slovakian Financial intelligence Unit may (art. 33 of the AML act) charge a fee from a legal entity and an individual entrepreneur for non-fulfillment or violation of any of the obligations established in the AML Act. The fine may be up to twice the amount of the unauthorized benefit, if such unauthorized benefit can be established, or up to EUR 1 000 000, whichever is higher.

In determining the amount of the fine, the financial intelligence unit shall take into account the seriousness, duration of the unlawful act and its consequences, if they can be determined, the level of cooperation provided by the responsible person in the investigation, the size and nature of the business activity of the responsible person and the repeated failure or violation of the duties established by this law or based on it.

Manimama Legal & Growth Agency provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.

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