Slovenia is the second largest Bitcoin market in Europe, according to recent data, which is why setting up a blockchain business is a good idea. Moreover, initial coin offerings (ICOs) have the tendency to become one of the most prolific types of enterprises that can be created in this sector.
If you are an experienced or unexperienced entrepreneur and want to launch an ICO in Slovenia, this one of the friendliest countries when it comes to fintech. Our company formation agents in Slovenia will help you create such a business here.
Legislation on virtual currencies in Slovenia
Slovenia does not have a specific legal framework to cover activities related to cryptocurrencies, such as initial coin offerings. However, there are other laws that apply, among which:
- – the Financial Instruments Market Act;
- – the Investment Funds Law;
- – the Commercial Code;
- – the Payment Systems and Services Act;
- – the Management Companies Act.
These laws apply as ICOs are treated similarly to initial public offerings (IPOs), with the amendment that the instruments traded are virtual coins instead of other financial assets.
If you want to open a company in Slovenia in the cryptocurrency field, the ICO can be a good option. Our local advisors can help you understand the legislation you need to comply with.
Steps to create an ICO in Slovenia
The procedure for launching a Slovenian ICO after registering a legal form to operate it are:
- creating a white paper outlining the objectives of the initial coin offering;
- creating a digital token or use an existing one;
- developing a marketing strategy for the platform it will be sold on;
- apply for the necessary licenses, where applicable;
- create a website or another platform to advertise/sell the cryptocurrency.
A particularity of Slovenia is that there is no need to apply for a crypto license here, as the authorities have transposed EU regulations in the national legislation. Furthermore, the National Bank plans to create register where such ventures will be registered.
Feel free to address our officers for information on how to launch such a business in Slovenia.
What type of entity to use to create an ICO?
Just like in other countries, the Commercial Code provides for several types of entities that can be used to create various types of businesses. However, compared to other jurisdictions where special crypto licenses must be obtained, therefore, specific legal form could be required, this is not the case of Slovenia.
Given the fact that ICOs could be requested to enter the special register to be created means that if you want to launch such a venture here, you can use the most common legal entity here: the private limited liability company. For this purpose, you need a minimum share capital of EUR 7,500.
If you are considering the creation of an initial coin offering in Slovenia, you can rely on our local consultants who are at your disposal with complete business registration services.
What does it entail to open an ICO in Slovenia?
As mentioned above, one of the laws to respect is the Commercial or Companies Law, as in order to create an Initial Coin Offering in Slovenia, you must first incorporate a legal entity with the Trade Register. Only after this step, you can file to obtain the necessary authorizations to trade digital money.
Starting with 2018, the Slovenian Securities Market Agency and the Financial Administration have issued several regulations through which digital coins can be categorized as transferable securities or utility tokens. The main aspect to consider with respect to ICOs is that only cryptocurrencies entering the transferable securities category can be traded through such platforms.
For this purpose, each application with the Securities Market Agency will be treated individually when setting up ICOs in Slovenia.
Crypto issuance under ICOs in Slovenia
In order to open an ICO in Slovenia, a local or foreign investor must first register a company with the Trade Register and then with the Securities Market Agency in order to create cryptocurrency exchanges or crypto wallets. This means that the authorities here make it easier for entrepreneurs to enter the virtual coins sectors, as they do not need to apply for separate licenses for this purpose.
What is important to notice is that the Anti-Money Laundering Act was amended so that any activity associated with the trading of digital money, including Slovenian ICOs, will need to implement specific measures to detect and prevent money laundering.
If you are interested in launching an ICO in Slovenia and need support, you can rely on our consultants. We are also at your disposal if you want to open another type of business in the fintech sector.
Raising funds through initial coin offerings in Slovenia
If until now, startups were the types of ventures raising money through less conventional ways, such as fundraising, now, well established enterprises appeal to this method while diversifying their portfolios.
ICOs have become one of the most reliable ways of gathering funds in Slovenia, as there are several ways through which this is possible. Among them, we remind the following:
In Slovenia and other nations across the world, initial coin offerings are the simplest way to raise money for private ventures. Initial coin offerings can be used in a number of ways to raise money, but the ones that are most common in Slovenia are as follows:
- – the creation of projects through which companies launch their own digital coins for public offerings;
- – entering partnerships or joint ventures which companies that deal in cryptocurrencies;
- – advertisement platforms, cryptocurrency exchanges, and crowdfunding platforms are also innovative ways of raising money through ICOs.
Setting up an ICO in Slovenia is also possible because of the high interest of Slovenian citizens in digital assets.
If you want to open a company in Slovenia and trade virtual money through it, you can rely on our local advisors.
Types of virtual currency accepted in Slovenia
The possibility to create a digital token with many uses is one of the good aspects of opening an initial coin offering in Slovenia.
Digital tokens can take various forms, among which that of payment tokens that may be used as a form of payment. They can also be sold on specialized trading platforms under the form of utility tokens. Equity or investment tokens, on the other hand, provide membership rights or shares in the issuer’s future profits.
The classification of ICOs is important from a taxation point of view, as tokens used for exchange purposes will attract a flat tax of 10% or 20% for the persons buying them.
You can obtain more information on the taxation of ICOs from our Slovenian company formation officers.
Cryptocurrencies in Slovenia
Blockchain is a familiar term among Slovenian citizens and business owners, as the country ranks 2nd in the world when it comes to internet searches on ICOs. Furthermore:
- – the average number of blockchain companies here is 14,5 per million inhabitants, which is the highest in Europe;
- – at the level of 2020, there were between 30 and 50 blockchain companies registered in Slovenia;
- – the same companies had approximately 23,000 employees.
If you are interested in exploring the blockchain technology in Slovenia by launching an ICO, feel free to contact our company registration advisors.