Licensing for Cryptocurrencies in Slovakia

Regulation of cryptocurrency activities is primarily focused on AML/CFT (anti-money laundering and countering terrorist financing) requirements. The authorities have shown the procedure for taxation of cryptocurrencies, but now they have an inflexible approach to regulating this niche. This can only mean that a complete regulatory framework will not be in place soon.

The country has many advantages despite the lack of strict rules. The cryptocurrency business attracts companies and they want to get a Slovakia crypto license in this European country. As an example, we can mention low startup costs, a favorable tax system for business, the presence of nominee directors and shareholders, etc.

Slovakia has a financial intelligence agency, which in turn has developed control over cryptocurrency operations.

Cryptocurrency Regulation and Recognition by The National Bank of Slovakia (NBS)

When it comes to regulating Slovak market participants and maintaining a stable monetary policy, it is the National Bank of Slovakia (NBS) that is responsible for this. Currently, there is no license specifically for cryptocurrency providers, but there are definitions of various crypto assets. This includes those assets that are associated with more conventional payment methods, such as exchange for fiat currency.

The National Bank of Slovakia defines cryptocurrencies as digital assets that use cryptography, often use blockchain technology, and are decentralized. There are also terms such as electronic tokens or coins. Mining is the process of cryptocurrency extraction.

Cryptographic Asset Categories

Virtual Assets: Used for payments and currency exchange, without additional rights.

Utility Tokens: For future subscriptions to issuer services or goods.

Investment Tokens: May grant assets or management involvement.

ICOs: Innovative crypto funding through public token issuance, often online.

Starting a Crypto Business in Slovakia: Requirements and Steps

To obtain a cryptocurrency license in Slovakia, you must first establish a local company under Commercial Code regulations. Both Slovak citizens and foreigners face the same rules, with no specific citizenship requirements.

Private limited liability companies are commonly chosen for crypto businesses, taking 3-4 weeks with proper documentation.

Requirements for a private limited liability company:

• Unique company name (with three alternatives)
• Minimum EUR 5,000 equity (full payment optional)
• Director in Slovakia or another EU country
• 1-50 shareholders
• Local corporate bank account (up to two weeks)

Establishing a private limited liability company

1. Verify and reserve the chosen company name with the Trade Register
2. Submit an application for a cryptocurrency license to the Trade Licensing Office.
3. Submit all documents to the trade register
4. Register for tax purposes
5. Register with health insurance and the Social Insurance Agency within eight days of starting crypto business activities.

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