If you want to open a company in Bulgaria in the cryptocurrency sector, you can contact our Bulgarian local agents. The formalities and procedures related to company incorporation in Bulgaria can be explained in detail by our specialists. In the following lines, you can find information on how to apply for a Virtual Asset Service Provider (VASP) license in Bulgaria and what the rules in this direction are.
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Conditions to open a cryptocurrency company in Bulgaria
Investors who want to set up cryptocurrency companies in Bulgaria should ask for support and information from our specialists in company formation in Bulgaria in matters of documents and varied conditions. One should consider the following aspects when deciding on a cryptocurrency company set up in Bulgaria:
- signing a contract with a Bulgarian bank;
- respecting the rules and regulations imposed by the National Bank of Bulgaria;
- adopting a secured method of currency exchange with no hidden conditions or fees;
- offering client support;
- creating Bitcoin applications for clients;
- respecting the rules and regulations imposed by the National Bank of Bulgaria.
How is cryptocurrency seen in Bulgaria?
Cryptocurrency is a legal method of payment that is supervised by the Bulgarian National Bank. In other words, this digital currency is a form of payment without involving liquid money in a transaction. Bitcoin is the first decentralized cryptocurrency with roots in Japan and developed worldwide quickly, including in Bulgaria. Opening a cryptocurrency company in Bulgaria as a foreign entrepreneur is subject to the main conditions imposed for any company in the country, considering also the special licenses and permits imposed in the financial sector. Even though cryptocurrency is not used on a large scale, it has sufficient potential to develop, and Bulgaria is open to all kinds of investments in the financial sector, including the one related to the electronic form of payments.
Unregulated activities in Bulgaria
The European Securities and Markets Authority, the European Banking Authority, the Bulgarian National Bank, and the Financial Supervision Commission in Bulgaria consider that cryptocurrencies fall out of the regulatory boundary of the payment services and investment services legal backgrounds. This is because certain cryptocurrencies do not qualify as financial tools, due to mere payment use. In this case, no license is required for the exchange, transfer, or custody of cryptocurrency in Bulgaria.
Controlled cryptocurrency activities in Bulgaria
When crypto assets are recognized as financial instruments, services linked to them may fall within the scope of the existing investment services legal framework in Bulgaria. Also, if such crypto assets have investment purposes and are expected to generate returns, they are recognized as financial instruments. Here, an investment firm license is needed, issued under the control of the Bulgarian Markets in Financial Instruments Act. With this type of license, you can make exchanges, transfers, and other financial operations. These are other EU financial regulations that apply in Bulgaria, with the help of the European Securities and Markets Authority:
- Transparency Directive,
- Directive Prospectus,
- Market Abuse Directive,
- Short Selling Regulation,
- Central Securities Depositories Regulation,
- Settlement Finality Directive.
What news does the legislation bring in terms of cryptocurrency in Bulgaria?
The National Bank in Bulgaria and the Financial Supervision Commission have been making a substantial advance in terms of regulatory framework and applicable laws. This was possible due to the increased interest of local and foreign businessmen in cryptocurrency in Bulgaria. In this sense, the EU directives referring to anti-money laundering have been revised, and other EU-related cryptocurrency guidelines will be implemented in the future in order to align with the other member states. Here are other important aspects referring to crypto regulations in Bulgaria:
- The Crypto-Assets markets (MiCA) were recently approved in Bulgaria and promise consistency and transparency in the cryptocurrency sector.
- Recent changes and implementations of the law focus on preventing misunderstandings of crypto assets services and promise better supervision of existing and future providers.
Advantages in the crypto field of Bulgaria
Those who want to obtain a crypto license in Bulgaria to establish their activities of this kind benefit from a stable climate and varied advantages:
- Obtaining a Virtual Asset Service Provider (VASP) license in Bulgaria is a simple and uncomplicated process.
- In most cases, the licensing process does not involve traveling to Bulgaria as a foreign investor.
- There is no need for extensive capital to open a cryptocurrency company in Bulgaria.
- Bulgaria is part of the European Union and aligns itself with directives imposed in the cryptocurrency sector, making the country a stable environment for businesses of this kind.
- Bulgaria is among the countries open to the latest technology and innovation, and the crypto sector is no exception.
Why is Bulgaria a great business destination?
Bulgaria has a stable business climate and optimal local conditions. Also, foreign entrepreneurs can opt for Bulgaria if they want to develop their business in this part of Europe. On the other hand, Bulgaria has a fairly attractive tax system compared to other European countries, which makes it a favorable business destination. Here are other interesting facts if you want to set up a company in this country and want to know one of the economic facts:
- An economic growth of approximately 2.3% was recorded in 2023.
- The consumer price index was set at 8.2% in the same year in Bulgaria.
- The unemployment rate in Bulgaria was 4.5% at the end of 2023.
Specialized support from our local agents
The legislation regarding the opening of a cryptocurrency company may seem quite complex, especially since there are many directives and regulations from Europe that apply without fail in Bulgaria. But with specialized help, you can make sure that all the rules are respected, especially regarding the documents. Those who want to obtain a Virtual Asset Service Provider (VASP) license in Bulgaria should collaborate with experts in the field, such as our local agents. On the other hand, it is good to know that our team collaborates with the relevant institutions that are in charge of business formation and license issuance.
We offer specialized assistance to those interested in obtaining a crypto license in Bulgaria, as well as to people interested in other aspects related to business. Among them, our accountants in Bulgaria can be business partners right from the start. Moreover, those interested in a startup in Bulgaria can benefit from assistance and advice in this direction. We therefore invite you to contact our Bulgarian agents and learn more about the services we offer to local and foreign entrepreneurs.