On December 29, Serbia adopted the Law on Digital Assets, which allows the issuance and trading of digital currencies, as well as the provision of cryptocurrency services in the country.
According to local media reports, the bill was introduced in October and will enter into force six months after approval. Under the new legislation, digital asset service providers will be able to legally operate in the country after obtaining permission from the Serbian Securities Commission and the National Bank of Serbia (NBS).
Firms must obtain approval from supervisory authorities within six months before the law comes into force. According to the new rules, digital assets can be issued in Serbia with or without an approved technical document. However, a crypto asset with an unapproved technical document cannot be promoted in the country and various restrictions will be imposed on it.
In terms of trading, exchanges need to obtain a license that allows them to work with cryptocurrencies. In addition, the law allows the secondary trading of digital assets that have been issued in Serbia and have an approved official document. OTC trading (OTC) and the use of smart contracts in secondary trading are also allowed.
However, the provisions of the new law do not apply to cryptocurrency transactions that take place between a limited number of people who accept digital assets “as a reward, without the possibility of transferring or selling them.” The law also does not apply to cryptocurrency miners.
Financial institutions controlled by the NSB are still prohibited from using digital assets, but such firms are allowed to hold cryptographic keys. NSB-controlled entities cannot convert their assets into virtual currencies or “digital asset-related instruments”. In addition, such companies are prohibited from providing cryptocurrency services and cooperating with firms offering such services.
As a reminder, Serbia has not always been friendly towards cryptocurrencies. In 2014, Bank of Serbia stated that it did not consider Bitcoin to be legal tender. However, given the development of technology in the country, the Serbian government has revised its approach to digital assets. According to the Blockchaincenter.net portal, users from Serbia are showing great interest in altcoins.
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