The regulator of the cryptocurrency market in Slovakia is the Financial Intelligence Authority (Finančná spravodajská jednotka). Its functions include control over transactions, companies, their activities, corporate information, their compliance with AML/CFT rules, implementation of KYC procedures, and risk management.

Slovakia has implemented EU legislation into local e-money regulations, therefore the Financial Intelligence Authority requires strict compliance with all anti-money laundering procedures, which ensures the country’s positive reputation on the financial market.

Following AML regulations, companies planning to obtain a Cryptocurrency exchange license in Slovakia or offering custody services must register with the Trade Register and obtain a permit from the Trade Licensing Office.

The National Bank of Slovakia (NBS) monitors the financial market and has recognized crypto-assets, but does not control crypto-activities, even if they are exchanged for fiat money.

NBS refers to virtual currencies as digital currencies using blockchain, ICOs as an alternative method of attracting investment, and defines mining as the process of creating cryptocurrencies.

From June 2024, the MiCAR regulation (MiCA) and standardization of approaches to the regulation of crypto-operations and companies will come into effect in the EU zone, which should ensure the protection of investors’ interests, enhance market transparency, and establish uniform requirements for conducting crypto-business.

Advantages of obtaining a cryptocurrency license in Slovakia

EU zone.
European legislation with protection of investors’ interests, stable political sphere, and compliance with all international norms on financial market regulation.

Simple process of company registration and obtaining a license.
Crypto exchange license Slovakia costs are among the lowest in the EU zone. For the company: there is no currency control, there is a possibility of 100% ownership by non-residents, there is no limit for capital movement, there are no restrictions in hiring non-residents, and nominee managers and shareholders are allowed.

Choice of license.
The company has a choice to provide exchange or storage services, which determines the type of license. If two types of licenses are issued, the company can create a crypto exchange.

Favorable tax system.
Slovakia allows working with one of the most optimal tax rates in the EU.

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Requirements for obtaining a cryptocurrency license in Slovakia

Crypto activities in Slovakia are licensed, lack of authorization is equated with fraud, leading to fines and criminal liability.

The list of requirements consists of:

Compliance with AML/CTF procedures.
The organization must have an AML manager to ensure compliance with legislation: on customer identification; identify money laundering-related transactions; implement KYC policies; and report violations, according to the AML/CTF Act 297/2008.

Business Structure.
The managing director of the company must be a resident of the EU, Slovakia; there are no such criteria for founders. The director of the company is obliged to develop a business plan for further activities with financial projections.

Company registration and initial capital.
To register a legal entity in Slovakia you need to pay a minimum of EUR 5 000, most often register a limited liability company in the Trade Register, the registration process takes up to a month. Documents must be in Slovak language.

Submission of an application to the Trade Licensing Office.
If all Slovakia crypto exchange license requirements are met, an application is submitted to the Regulator and only after the permit is issued, the company has the right to conduct crypto activities.

Procedure for Obtaining Cryptocurrency License Registration in Slovakia

The authorization procedure can take up to 4 months. It takes place in several stages:

  • Stage 1

Collection of information

To register a legal entity you need to prepare several documents identifying the managers and founders with confirmation of their professional reputation, have a local legal address (rent or ownership), and make a business plan.

  • Stage 2

Translation of documents

All documents must be apostilled and translated into Slovak. It is important to remember that you should apply to a translator certified by the Ministry of Justice of Slovakia.

  • Stage 3

Registration of the company with the state authorities

After the name has been chosen, managers have been appointed, and the application with documents for registration is submitted. If there are no additional requirements to the package of documents, then the whole process takes up to one month.

  • Stage 4

Development of AML policies

To obtain a Slovakia crypto exchange license, it is mandatory to develop and comply with all AML policies and hire an AML manager for the company.

  • Stage 5

Applying for a license

Obtaining a license starts with submitting an application in Slovak language to the Trade Licensing Office, followed by paying the state fee of EUR 15.

  • Stage 6

Open a corporate account

Crypto activity requires opening a bank account, each financial institution may have its own set of documents, in general, the process takes up to 3 weeks.

Types of Cryptocurrency Licenses in Slovakia

A cryptocurrency license in Slovakia, issued by the Trade Licensing Authority, allows you to trade legally, store cryptocurrencies, and offer exchange services in this jurisdiction. This is established by the norms of Act No. 279/2020 Col as amended by Act No. 297/2008.

There are several types of licenses in Slovakia:

  • Exchange of virtual currencies, with authorization to trade/exchange crypto for fiat money and other assets
  • Storage services, crypto wallets, transfer of crypto assets

The activities of all companies are subject to the AML/CTF Law and regular inspections by government agencies, including access to corporate information. Also, the rules established in the Trade Licensing Act define the authorization process.

Crypto license consultant in Slovakia

Сonsultant

Inhyuk Suh

Establishing a cryptocurrency company in Slovakia

Before obtaining a cryptocurrency license, it is necessary to register a local company according to the Commercial Code. Most often a limited liability company is registered. The business registration process takes up to 1-2 months and consists of these stages:

  • Stage 1

Choosing a name for the company

It is better to choose several options so that there is no repetition with those already registered in the Commercial Register.

  • Stage 2

Decide on a local office

The company must have a legal address, a lease or purchase/sale agreement can confirm it. A virtual office is also allowed.

  • Stage 3

Fulfillment of norms on documents

From managing managers, beneficiaries it is necessary to provide passports, proof of residence, and professional experience and reputation (certificate of no criminal record).

It is allowed 100% ownership of the organization by a non-resident, but the director/manager must be a resident of the EU, OECD, or Slovakia.

Founding documents are submitted for the company: contract, articles of association, business plan.

  • Stage 4

Initial capital

The minimum initial capital should be EUR 5000, but it is not necessary to deposit the whole amount at the time of registration.

  • Stage 5

Submission of application

Registration of the company based on all documents is carried out at the Commercial Register with the payment of the state duty – EUR 15 and the application in Slovak language.

  • Stage 6

Opening an account

A corporate account in Slovakia can be opened in two weeks. There are about 30 banks under the regulation of the National Bank.

  • Stage 7

Registration with the Tax Authority and Social Insurance.

This process must take place within 14 days of company registration. Crypto trading is subject to the Income Tax Act 595/2003.
Crypto activities are only possible with a certificate of registration in the Trade Register.

Documents required to obtain a cryptocurrency license in Slovakia

Obtaining a license requires the following documents:

  • Application to the Registrar
  • Company documents: articles of association, deeds, minutes, office lease/purchase agreements
  • Documents on shareholders and managing managers: passports, proof of residence, diplomas/certificates and criminal record certificates
  • Business plan for future operations
  • AML/CTF procedures

Documents are submitted in Slovak language, translation can only be done by a specialist certified by the Ministry of Justice of Slovakia.

Regulation of cryptocurrencies in Slovakia

The main laws that regulate crypto activities:

Taxation in Slovakia

According to the regulations of the Income Tax Act 595/2003, companies are registered with the tax office and pay the following taxes:

  • Corporate Tax (CIT) – 21%
  • VAT 20%
  • Social insurance -25,2% and health insurance -10%.
  • For legal entities when selling cryptocurrency and receiving income up to EUR 49,790 is set at 15%, over -21%
  • If there is no movement on accounts and no income from cryptocurrency – no tax is charged.

In Slovakia, cryptocurrency is not guaranteed by the National Bank, and is not considered as a means of payment, but is accepted as a financial instrument that can be sold, exchanged, or stored.

There are also more than 70 double-taxation treaties signed.

Auditing and accounting for cryptocurrency companies in Slovakia

The Accounting Act No. 431/2002 as amended in 2018 obliged cryptocurrency companies to conduct an audit if:

  • Assets are more than EUR 1 million.
  • Turnover is more than EUR 2 million.
  • Employees are more than 30

According to the Accounting Act, the real value of a cryptocurrency is the market price on the day of valuation.

FAQ about cryptocurrency license in Slovakia

What is a cryptocurrency license in Slovakia?

An official authorization from the Trade Licensing Authority to conduct legal crypto activities in the jurisdiction.

Is cryptocurrency regulated in Slovakia?

Yes, the Trade Licensing Authority issues the license and the Financial Intelligence Authority handles the control.

How much does it cost to obtain a cryptocurrency license in Slovakia?

The application fee costs EUR 15, the minimum authorized capital is EUR 5000, you should also take into account the costs for the translation of documents, notarization, and registration of a corporate account.

How long does it take to obtain a cryptocurrency license in Slovakia?

Collectively, the whole process of registering a cryptocurrency company and obtaining a license can take up to 4 months.

Is cryptocurrency taxable in Slovakia?

Yes, depending on the amount of income received.

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