Crypto License in Bulgaria

Fionza Consultants boasts a seasoned team of licensing experts with extensive experience in facilitating the acquisition of crypto licenses in Bulgaria for international clients. Trust our proficient team to navigate you through the entire license application process, ensuring strict compliance with mandatory requirements. Count on Fionza Consultants to provide comprehensive guidance, including meeting obligations such as the minimum capital deposition, to streamline your engagement and secure your crypto license successfully.

Bulgaria

Company Registration – 2 Week
Local Director? – No
Bank Account Opening – 4 Weeks
Travel Required – No

Crypto License in Bulgaria

Fionza Consultants is your trusted partner in guiding international clients through the seamless acquisition of a cryptocurrency license in Bulgaria. Our goal is to facilitate the effortless establishment of your cryptocurrency venture in Bulgaria, allowing you to focus your efforts on other critical aspects of your business.

In the dynamic realm of financial transactions, the surge of cryptocurrency businesses, including notable players like Bitcoin and Ethereum, has reshaped the global market. Bulgaria, with its progressive approach to technology and business, has emerged as an enticing hub for aspiring cryptocurrency entrepreneurs. The Bulgarian government recognizes the transformative potential of digital currencies and has strategically implemented licensing frameworks to regulate and support these enterprises, ensuring transparency, security, and legal compliance.

The cryptocurrency licensing process in Bulgaria is pivotal, showcasing the nation’s dedication to embracing digital currencies, safeguarding stakeholders, and fostering economic prosperity. This strategic initiative addresses the evolving landscape of financial transactions, positioning Bulgaria as a forward-thinking destination for cryptocurrency ventures.

Bulgaria’s implementation of cryptocurrency license requirements serves multiple purposes. It aims to bolster consumer protection, combat money laundering, and mitigate potential risks associated with the cryptocurrency industry. The licensing process plays a crucial role in enabling the government to monitor and enforce compliance with anti-money laundering and counter-terrorism financing measures. This, in turn, enhances Bulgaria’s financial integrity and global reputation, showcasing its commitment to responsible cryptocurrency practices.

As a result, Bulgaria is well-positioned to leverage the advantages of cryptocurrency businesses, creating an environment of trust, stability, and sustainable growth in the digital economy. Partner with Fionza Consultants to navigate the cryptocurrency licensing landscape in Bulgaria and seize the opportunities in this rapidly evolving industry.

Advantages of obtaining a Bulgaria Crypto License

Gain a Competitive Edge with a Crypto License in Bulgaria:

Progressive Regulatory Environment: Bulgaria offers a forward-looking regulatory landscape for the cryptocurrency industry. Securing a crypto license ensures compliance with the country’s specific regulations, providing stability and legal certainty for cryptocurrency ventures.
EU Passporting Rights: As an EU member state, Bulgaria grants passporting rights to businesses holding a crypto license. This enables them to extend their services across the European Economic Area (EEA), tapping into a vast market with harmonized regulations.
Supportive Government Initiatives: The Bulgarian government actively supports technology-driven sectors, including cryptocurrency. Initiatives such as innovation hubs, financial incentives, and collaborations create a conducive ecosystem for crypto businesses to thrive.
Competitive Operating Costs: Bulgaria offers a cost-effective business environment with lower operating expenses compared to many EU countries. This includes competitive labor costs, office rentals, and overall business expenses, allowing crypto businesses to optimize operations efficiently.
Favorable Taxation Policies: Bulgaria’s advantageous tax policies benefit crypto businesses. With one of the lowest corporate tax rates in the EU, coupled with potential VAT exemptions for certain cryptocurrency activities, the country provides a competitive tax environment.
Skilled Workforce: Bulgaria boasts a highly skilled workforce, particularly in technology, software development, and finance. Access to qualified professionals familiar with blockchain technology and cryptocurrencies is a valuable asset for crypto businesses looking to build and expand their teams.
Enhanced Investor Confidence: Acquiring a crypto license in Bulgaria boosts investor confidence. Regulatory oversight and compliance showcase secure and transparent operations, making it attractive to local and international investors seeking compliant and trustworthy cryptocurrency ventures.

Seize the opportunities in Bulgaria’s crypto-friendly environment with Fionza Consultants, your trusted partner for navigating the complexities of obtaining a crypto license and maximizing your business potential.

Laws governing a crypto license in Bulgaria

Navigating the Regulatory Landscape for Crypto Licenses in Bulgaria:

Explore the Legal Framework:

Bulgarian Law on Measures against Money Laundering (AML Law):
- Mandates crypto businesses to obtain a license.
- Requires robust Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures.
Bulgarian Law on Payment Services and Electronic Money:
- Regulates payment services, including those involving cryptocurrencies.
- Establishes the framework for crypto payment services.
Bulgarian Law on Currency Control:
- Governs the regulation and control of currency transactions, including crypto activities.
- Outlines reporting obligations and restrictions on foreign currency transactions.
European Union Regulations:
- Bulgaria, as an EU member state, adheres to EU regulations affecting the cryptocurrency industry.
- Compliance with the EU’s Anti-Money Laundering Directive (AMLD), such as the Fifth Anti-Money Laundering Directive (5AMLD).

Understand 5AMLD Compliance Requirements:

Virtual Currencies Defined:
- Digital representations of value not issued or guaranteed by a central authority.
- Accepted as a medium of exchange and electronically transferable, storable, and tradable.
Crypto Wallet Providers Defined:
- Entities offering custodial services for protecting private cryptographic keys.
5AMLD Compliance Obligations:
- Implementation of customer due diligence and KYC procedures.
- Record-keeping of transaction information, customer identification, and associated activities.
- Risk assessments for money laundering and terrorist financing.
- Mandatory reporting of transactions exceeding BGN 30,000 (approx. €15,000) to the Financial Intelligence Directorate.
Suspicious Activity Reporting:
- Crypto businesses obliged to report suspicious customers, transactions, and activities.
- Reporting to the Financial Intelligence Directorate following internal procedures.

Stay Compliant, Thrive Securely:

Fionza Consultants offers expert guidance for navigating Bulgaria’s crypto license requirements. Ensure your crypto business aligns with the evolving regulatory landscape while optimizing operations for success.

Activities allowed under a Bulgaria crypto license

Unlocking Possibilities: Crypto License Activities in Bulgaria

Discover the Range of Permitted Cryptocurrency Operations:

Cryptocurrency Exchange:
- A crypto license empowers businesses to run cryptocurrency exchange platforms.
- Facilitate the seamless buying, selling, and trading of digital currencies against fiat or other cryptocurrencies.
Custody of Crypto-Assets:
- Companies holding a crypto license can offer secure storage and custody services.
- Safeguard clients’ crypto-assets, including private keys, wallets, and digital holdings.
Wallet Services:
- Crypto license holders can provide comprehensive crypto-wallet services.
- Offer secure storage, transaction facilitation, and overall management of digital assets for users.
Payment Services with Cryptocurrencies:
- Businesses with a crypto license can dive into the realm of payment services using cryptocurrencies.
- Accept digital currencies for goods and services, facilitate crypto-to-fiat conversions, and enable crypto-based remittances.
Crypto-Asset Advisory Services:
- Certain crypto licenses may authorize businesses to offer advisory services.
- Provide insights into market analysis, investment guidance, and regulatory compliance within the cryptocurrency domain.

Leverage the Potential, Ensure Compliance:

Fionza Consultants guides you through the nuances of obtaining and optimizing your crypto license in Bulgaria. Unleash the possibilities of cryptocurrency operations while staying compliant with regulatory frameworks. Partner with us to navigate the diverse landscape of crypto activities in Bulgaria.

Bulgaria FSC – Regulatory body

Navigating Crypto Licensing in Bulgaria: The Role of the Financial Supervision Commission (FSC)

In the realm of crypto licenses in Bulgaria, the pivotal authority overseeing applications and ensuring regulatory compliance is the Financial Supervision Commission (FSC). Operating independently as a government agency, the FSC holds a crucial role in the oversight and regulation of financial activities throughout the country, functioning under the Bulgarian Law on Financial Supervision.

Key Functions of the FSC in the Crypto License Landscape:

Guidelines and Requirements:
- The FSC establishes comprehensive guidelines and requirements for the acquisition of crypto licenses.
- Ensures that applicants adhere to applicable laws and regulations governing the cryptocurrency sector.
Assessment of Eligibility:
- In the application process, the FSC assesses the eligibility of entities seeking crypto licenses.
- Reviews business plans, evaluates compliance measures, and considers financial stability to gauge suitability in the crypto industry.
Ongoing Oversight and Supervision:
- Post-licensing, the FSC maintains a vigilant stance by continuously overseeing and supervising licensed entities.
- Conducts regular inspections, monitors compliance with regulatory requirements, and addresses any instances of non-compliance or misconduct.
Preserving Industry Integrity:
- The FSC plays a central role in upholding the integrity, stability, and transparency of the cryptocurrency industry in Bulgaria.
- Acts as a regulatory safeguard, safeguarding the interests of investors, consumers, and the overall financial system.
Collaboration for Compliance:
- Close collaboration with the FSC is imperative for businesses seeking a crypto license in Bulgaria.
- Adhering to the regulations and guidelines set forth by the FSC is not only essential for securing a license but also for maintaining compliance throughout the operational lifecycle.

Fionza Consultants offers expert guidance in navigating the complexities of engaging with the FSC for crypto licensing in Bulgaria. Partner with us to ensure a seamless journey towards regulatory compliance and the successful establishment of your crypto venture.

Requirements for obtaining a crypto license in Bulgaria

Crafting a Robust Corporate Structure for Crypto Licensing in Bulgaria:

Embarking on the journey to obtain a crypto license in Bulgaria necessitates a strategic corporate structure, aligning with the standard legal framework for company establishment. Here are key elements to consider:

Shareholders:
- A minimum of one shareholder, whether an individual or a legal entity, is required.
- Shareholders own the company, holding shares that represent their ownership stakes.
Directors/Management:
- Designate at least one local director responsible for day-to-day management and operational oversight.
- The director plays a pivotal role in steering the business towards compliance and success.
Share Capital:
- Adhere to the minimum share capital requirements stipulated by the Bulgarian Commercial Act.
- Share capital serves as the financial backbone of the company, providing a measure of financial security. Notably, the minimum capital for a Bulgarian Limited Liability Company applying for a crypto license is BGN 2 (€1).
Registered Office:
- Establish a registered office address within Bulgaria.
- This official address serves as the hub for receiving and managing the company’s documents and correspondence. Virtual offices are permissible, providing flexibility.
Company Secretary:
- Appoint a company secretary as a mandatory requirement for entities seeking a crypto license in Bulgaria.
- The company secretary maintains correspondence and serves as a representative of the entity in the country.

Navigating the intricacies of establishing an entity for crypto licensing in Bulgaria requires a meticulous approach. Fionza Consultants stands ready to guide you through the process, ensuring your corporate structure aligns seamlessly with regulatory requirements. Partner with us for a robust foundation that propels your crypto venture toward success.

Process of obtaining a crypto license in Bulgaria

Navigating the Crypto License Application Process in Bulgaria with Fionza Consultants

Embarking on the journey to obtain a crypto license in Bulgaria involves a strategic and well-orchestrated process. Fionza Consultants, with its team of seasoned experts, offers comprehensive guidance through the following crucial steps:

Step 1: Planning and Strategizing for Company Formation

Collect KYC documents of prospective shareholders, directors, and beneficial owners.
Obtain a signed power of attorney to act on behalf of the client.
Reserve three alternative company names with the Bulgarian Trade Register.

Step 2: Registration of a New Bulgarian Company

Analyze long-term business needs and guide on the most suitable business structure, often recommending a Limited Liability Company (OOD).
Assist with the registration process, including the preparation of incorporation documents, notarization, and translation.
Complete the company registration within an expected timeframe of 2 weeks.

Step 3: Pre-application Preparation and Document Drafting

Prepare necessary policies and authorization documents, including AML/CFT and insurance policies.
Assist in drafting a comprehensive business plan and compliance program aligned with Bulgarian and EU directives.
Implement written compliance policies and provide ongoing assistance in program enhancement.

Step 4: Meeting Substance Requirements

Assist in fulfilling economic substance requirements, including a local registered address and a local director in Bulgaria.
Provide nominee director services and assist in recruiting local qualified employees.
Undertake candidate shortlisting and preliminary interviews for key employees, including the compliance officer.

Step 5: Corporate Bank Account Opening

Assist in consolidating required corporate documents for opening a corporate bank account with a Bulgarian bank.
Facilitate the process without the necessity for directors and shareholders to travel to Bulgaria.
Ensure the courier of internet banking token and access codes upon successful account opening.

Step 6: Filing for Authorization and Registration

Online submission of all prepared documents for authorization of the cryptocurrency company.
Navigate negotiations with regulatory bodies and address inquiries or requests for additional information.

Step 7: Accounting and Tax Obligations

Ensure ongoing compliance with regulatory laws set by the Bulgaria National Revenue Agency.
Provide monthly bookkeeping, preparation of financial statements, and annual tax return filings.

Fionza Consultants is your dedicated partner in every step of the crypto license application journey, offering expert guidance and support to ensure a seamless and compliant establishment of your cryptocurrency venture in Bulgaria.

Documents required to obtain a crypto license in Bulgaria

Unlocking the Crypto License in Bulgaria: Essential Documents for Application Success

Embarking on the journey to secure a crypto license in Bulgaria requires meticulous preparation, and the submission of comprehensive documentation. Fionza Consultants, your trusted partner, guides you through the application process, ensuring adherence to regulatory standards. Here are key documents typically required:

Application Form:
- Complete the application form provided by the Financial Supervision Commission (FSC), capturing details about the applicant, proposed crypto activities, and corporate structure.
Business Plan:
- Provide a detailed business plan outlining objectives, market analysis, financial projections, risk assessment, and compliance measures.
- Demonstrate a deep understanding of the crypto industry and the viability of proposed operations.
Company Documents:
- Include Articles of Association, Certificate of Incorporation, Memorandum of Association, and shareholder details.
- Offer insights into the legal structure and ownership of the company.
Identification Documents:
- Submit personal identification documents (passports or national ID cards) for key individuals in management, ownership, and beneficiaries.
Proof of Address:
- Confirm residential addresses of key individuals using documents like utility bills or bank statements.
Compliance Policies and Procedures:
- Establish and document robust anti-money laundering (AML) and know-your-customer (KYC) policies and procedures.
- Outline steps taken to mitigate risks of money laundering, terrorist financing, and financial crimes.
Financial Statements:
- Provide financial statements, audited reports, bank statements, and projections to demonstrate financial stability and capability.
Unique Identification Code (UIC):
- Include the unique identification code from the commercial register.
Payment Account Information:
- Specify account number and payment service provider details for the opened payment account.
Website or Mobile Application Address:
- Provide the web or app address for virtual currency exchange or digital wallet services.
Activity Description:
- Present a clear description of the intended activity.
Countries for Service Offerings:
- List countries where services will be offered.
Cross-Border Information:
- Indicate whether the applicant is a cross-border company or part of a cross-border entity.

Partner with Fionza Consultants for a seamless application process, ensuring that your documentation aligns with regulatory requirements. Trust us to navigate the complexities, securing your crypto license in Bulgaria efficiently.

Readymade Bulgaria Crypto Authorized Company

Accelerate Your Entry into the Bulgarian Crypto Sector with Ready-Made Authorized Companies

Experience a streamlined and efficient way to establish your presence in the Bulgarian cryptocurrency market by opting for our ready-made Bulgaria crypto authorized companies. Instead of navigating the complexities of starting a new company, this alternative solution allows you to acquire a pre-established entity that is already authorized for cryptocurrency activities.

Key Benefits:

Time-Saving Approach:
- By choosing a ready-made company, you bypass the entire process of company formation, saving valuable time and resources.
Fast-Track Entry:
- Acquire an established entity that has completed the initial incorporation and registration process, enabling you to enter the cryptocurrency market promptly.
Legal Compliance and Financial Stability:
- Our team conducts thorough due diligence on each ready-made company, ensuring legal compliance and financial stability.
- Verify that the company holds the necessary licenses and authorizations for cryptocurrency-related activities in Bulgaria.
Peace of Mind:
- Acquire a reliable and credible business foundation, backed by the assurance that the ready-made company aligns with specific regulations and standards governing the cryptocurrency industry.
Focus on Growth:
- Avoid delays associated with starting from scratch and concentrate on growing your business and seizing opportunities in the dynamic cryptocurrency market.
Ongoing Support and Maintenance:
- Benefit from our team’s continuous support and maintenance services, ensuring your acquired company remains compliant with legal and regulatory requirements.

Opting for a ready-made Bulgaria crypto authorized company is a strategic choice that provides a competitive edge in the industry. Save time, reduce complexities, and expedite your entry into the Bulgarian cryptocurrency sector with a pre-established, authorized entity. Our team is ready to support your journey and help you navigate the evolving landscape of the cryptocurrency market.

Tax implication of obtaining a crypto license in Bulgaria

Navigating Cryptocurrency Company Taxation in Bulgaria: Key Considerations

Understanding the tax implications for a cryptocurrency company in Bulgaria is crucial, considering the dynamic nature of the industry. Here are key points to consider:

1. Corporate Income Tax (CIT):

Cryptocurrency-related activities may be subject to corporate income tax at the standard rate of 10%.
Profits from the sale of financial assets held for less than one month may be subject to a higher tax rate of 15%.

2. Value Added Tax (VAT):

Cryptocurrency transactions are generally treated as services or intangible goods for VAT purposes in Bulgaria.
The sale or exchange of cryptocurrencies is usually exempt from VAT.
VAT may apply if the company provides services related to cryptocurrency mining, wallet operations, or exchanges.

3. Withholding Tax:

Payments to non-resident individuals or entities may be subject to withholding tax.
The standard withholding tax rate is 10%, but lower rates or exemptions may apply under tax treaties.

4. Personal Income Tax (PIT):

Individuals receiving income in the form of cryptocurrency may be subject to personal income tax.
Personal income tax rates in Bulgaria range from 10% to 29% based on income levels.

5. Transfer Pricing:

Engaging in related-party transactions may trigger transfer pricing rules.
Transactions between related parties must be conducted at arm’s length, with documentation supporting the transfer pricing methodology.

It’s important to note that the regulatory landscape for cryptocurrency taxation is evolving. Stay informed about potential changes and ensure compliance with Bulgarian tax laws. Our team of qualified tax professionals is ready to provide tailored advice, considering the specific circumstances and activities of your cryptocurrency company. Partner with us to navigate the complexities of cryptocurrency taxation in Bulgaria effectively.

How much time does it take to obtain a crypto license in Bulgaria?

Efficient Company Registration and Licensing Process with Fionza Consultants

At Fionza Consultants, we pride ourselves on facilitating the swift registration of your Czech company and the seamless opening of a corporate bank account within a targeted period of 6 weeks. However, the timeline for license approval is contingent on the thorough review by regulatory authorities.

As a standard practice, the National Revenue Agency (NRA) and Financial Supervision Commission (FSC) typically scrutinize applications over a duration of 2 to 3 months. The granting of a license is contingent upon the applicant meeting all stipulated requirements and submitting accurate documentation. Should any discrepancies arise, the regulatory body may seek clarification on specific issues. It is imperative to provide a detailed description of the intended business operations, with particular emphasis on a comprehensive and well-structured business plan.

Before embarking on the engagement, Fionza Consultants ensures transparency by furnishing a project plan outlining estimated timelines for company registration, document preparation, and license application. This meticulous planning ensures clarity for all parties involved in the project.

Partner with Fionza Consultants for a strategic and time-efficient approach to company registration and licensing in the Czech Republic. Our team of experts is committed to providing you with comprehensive support and guidance throughout the entire process.

How much does it cost to obtain a crypto license in Bulgaria?

Comprehensive Services with Transparent Fees from Fionza Consultants

At Fionza Consultants, we offer a spectrum of services encompassing the entire journey, from guiding you through the incorporation process to securing your crypto license in Bulgaria. Our total fee structure includes the company registration fee, license fee, and any additional costs that may arise.

Before commencing the registration process, we prioritize transparency and clarity. Our team will engage in detailed discussions with you to outline the total engagement fee comprehensively. This ensures that you have a clear understanding of the costs involved and the value you receive from our services. Fionza Consultants is committed to transparent communication, and all the terms and conditions will be explicitly stated in our appointment letter.

Choose Fionza Consultants for a seamless and transparent experience, guiding you through the complexities of company registration and crypto licensing in Bulgaria with a clear understanding of the associated fees.

Looking to apply for a crypto license in Bulgaria?

Empower Your Cryptocurrency Venture with Fionza Consultants

Fionza Consultants stands as your dedicated partner, specializing in providing comprehensive solutions for cryptocurrency businesses seeking to obtain a crypto license in Bulgaria. Leveraging our deep expertise in the regulatory landscape and extensive knowledge of the licensing process, we are committed to guiding you through the complexities of the Bulgarian market.

Why Choose Fionza Consultants:

Expert Guidance:
- Benefit from our dedicated team of professionals offering expertise at every stage of the crypto license acquisition process.
Regulatory Landscape Mastery:
- Navigate the regulatory landscape with confidence, relying on our in-depth understanding of the stringent requirements set by Bulgarian authorities.
Entrepreneurial Understanding:
- We comprehend the unique challenges faced by entrepreneurs in the cryptocurrency industry and simplify the process for you.
Comprehensive Solutions:
- Beyond license acquisition, we provide a suite of ancillary services, including corporate bank account opening, nominee director services, company secretary provision, registered office services, and ongoing regulatory compliance consulting.
Focus on Core Business:
- With our guidance and support, streamline your operations and focus on core business activities while we handle regulatory compliance.
Reliable Partner:
- Trust Fionza Consultants to be your reliable partner in establishing and growing a compliant and successful cryptocurrency venture in Bulgaria.

Additionally, our team of licensing experts excels in assisting financial service organizations in obtaining various offshore financial licenses, tailored to long-term business needs and goals.

Choose Fionza Consultants for a seamless journey in establishing and growing your cryptocurrency venture in Bulgaria. Our commitment is to empower your success with compliant solutions and unparalleled support.

Find out more!

Contact us to find out more about how to register company in the Bulgaria. Our team of experts will revert within the next 24 hours.

FAQ

What is a crypto license, and why do I need it in Bulgaria?

A crypto license is a legal authorization granted by the Financial Supervision Commission (FSC) in Bulgaria, allowing individuals or companies to engage in cryptocurrency-related activities. It is necessary to operate legally and compliantly in the crypto industry, ensuring trust and transparency in your operations.

What types of crypto licenses are available in Bulgaria?

Bulgaria offers several types of crypto licenses, including cryptocurrency exchange licenses, crypto wallet provider licenses, and cryptocurrency payment service provider licenses. The specific type of license you need depends on the nature of your crypto business activities.

How can I apply for a crypto license in Bulgaria?

To apply for a crypto license, you need to prepare a comprehensive application package, including your business plan, proof of eligibility, AML/KYC procedures, capital requirements, security measures, and compliance mechanisms. It is advisable to seek assistance from legal experts or corporate service providers experienced in crypto licensing to ensure a smooth application process.

What are the regulatory requirements for obtaining a crypto license?

The regulatory requirements for obtaining a crypto license in Bulgaria include fulfilling eligibility criteria, implementing robust AML/KYC procedures, meeting capital requirements, maintaining security measures, and establishing compliance and internal control mechanisms. Additionally, adherence to tax regulations and reporting obligations is crucial.

How long does it take to obtain a crypto license in Bulgaria?

The timeline for obtaining a crypto license can vary depending on factors such as the completeness of your application, the complexity of your business model, and the review process by the FSC. On average, it may take several months to obtain a crypto license, so it is important to start the application process well in advance.

Are there ongoing obligations after obtaining a crypto license?

Yes, holding a crypto license in Bulgaria comes with ongoing obligations. These may include regular reporting to the FSC, maintaining compliance with AML/KYC regulations, conducting audits, submitting financial statements, and keeping up with any regulatory updates or changes.

Can I operate internationally with a crypto license from Bulgaria?

Yes, a crypto license obtained in Bulgaria allows you to operate internationally, provided you comply with the regulations of the jurisdictions in which you offer your services. It is crucial to understand and adhere to the laws and regulations of each country you operate in to ensure compliance and avoid any legal issues.

Crypto License in Bulgaria