Obtaining a crypto license in Bulgaria

The cryptocurrency market is one of the most dynamic sectors in the world today. Every year, it becomes increasingly important, attracting the attention of investors and entrepreneurs from different parts of the world.

In this context, obtaining a crypto license for business becomes an important issue. Bulgaria is one of the most promising countries for crypto activities.

This country, like many others, is taking steps to ensure a legal environment conducive to the development of this sector.

One of the key elements of this is establishing procedures for obtaining crypto licenses for companies (both resident and non-resident).

Aware of the need to regulate and promote the crypto-activities of enterprises, the Bulgarian government has embarked on a strategic path by introducing a transparent licensing system designed to ensure the unhindered use of digital currencies.

By obtaining a crypto license, companies can operate with confidence, knowing that they meet all the requirements of Bulgarian law.

The main advantages of choosing Bulgaria for crypto business are the following:

• Direction to the European Economic Area. Bulgaria provides an opportunity for those companies that have received a crypto license to provide their services to EU countries, which allows companies to quickly enter the huge European market and develop;
• Competitive operating costs. Bulgaria provides a cost-effective business environment with lower operating costs compared to many other EU countries, including competitive labor costs, office rent, general costs of doing business;
• Favorable tax policy of the government. Bulgaria currently has one of the lowest corporate tax rates in the EU: corporate income tax is 10%; VAT – 20% (crypto-assets are not taxed); tax on dividends – 5%; Personal income tax – 10%.
• The minimum number of requirements for the company. In Bulgaria, the most common organizational form for cryptocurrency business is legal entities in the form of a limited liability company (LLC) or a joint-stock company (JSC). For the registration of such companies, it is important to comply with the following requirements: the presence of a registered office, a local director, an account in a local bank, and initial capital – 1 euro. Also, to obtain a crypto license for the company, there are no requirements in the legislation for a specialized AML officer, audit.
• A wide range of activities is permitted under the license. Here are the main activities allowed under the cryptocurrency license in Bulgaria: management of cryptocurrency exchange platforms, services for safe storage of customers’ crypto assets, crypto wallet services, and payment services using cryptocurrencies. Some cryptocurrency licenses in Bulgaria may allow companies to provide consulting and advisory services related to cryptocurrencies.

Obtaining a crypto license in Bulgaria requires the applicant to fulfill certain requirements and procedures stipulated by the country’s legislation.

Perhaps one of the biggest difficulties that a client can face in the process of obtaining a crypto license in Bulgaria is that the regulation of cryptocurrencies in Bulgaria can be subject to change and update (especially the recommendations of the relevant regulatory authorities).

Qualified lawyers of the “Prikhodko and Partners” Law office offer a wide range of legal services for obtaining a crypto license in Bulgaria.

Our services may include the following stages of interaction:

• Legal support in the registration/acquisition of a ready-made company on the territory of Bulgaria, which will carry out crypto activities, on a turnkey basis;
• Legal support in the process of submitting the appropriate documentation to the Bulgarian state authority that licenses companies in the field of crypto business;
• Consulting services regarding the analysis of documentation for obtaining a crypto license for their compliance with the requirements of Bulgarian legislation and others.

Conclusions.

Bulgaria is one of the countries with a favorable environment for the development of cryptocurrency business.

The cryptocurrency business licensing process in Bulgaria is aimed at ensuring the regulation of various types of activities and is characterized by its complexity and complexity.

An important step will be to familiarize yourself with the legal norms and requirements governing the cryptocurrency sector in Bulgaria, and to prepare the documentation for applying for a license to the relevant authority, with which our company’s lawyers will help.