Slovenia encourages cryptocurrency companies in multiples ways, as for example through the organization of conferences related to this topic. These events offer the framework in which the regulations and the priorities in this domain can be discussed by the most innovative and active enterprises in cryptocurrency. If you are interested to open a cryptocurrency company in this country you could discuss the registration aspects with one of our consultants in company formation in Slovenia. There is no need to apply for a crypto license in Slovenia, as the government decided on the creation of a register.
Slovenia’s cryptocurrency legal framework
Cryptocurrencies refer to virtual currencies such as bitcoin or litecoin. More and more companies in Slovenia have set their operations in the field of cryptocurrency transactions, a fact which led the Slovenian government to adopt a transparent legal framework concerning to this commercial issue. Recently, the Tax Administration in Slovenia clarified that since cryptocurrencies are virtual coins, they are not considered as monetary assets therefore they are not taxed in this country. Only as far as bitcoin or other cryptocurrencies generate income, the revenues will be taxed by the Slovenian state through the income tax.
Slovenia does not have a specific law in place for crypto-related transactions, even if it was one of the first countries in the European Union to use digital coins for payments. However, just like other EU states, in 2020 it amended the Prevention of Money Laundering and Terrorist Financing Law by harmonizing it with EU directives.
With these amendments the following changes have been enabled:
- – a definition of virtual currencies was created;
- – such a virtual currency is not linked to an existing currency and does not have a legal status;
- – digital coins can be accepted as a method of payment by natural persons and companies;
- – they can also be used as exchange means, they can be transferred, traded or stored.
The definition of a virtual currency consists in it being a digital representation of value that is not issued by a bank or any other public body. Moreover, it does not have a legal status, nor is it linked to any existing currency.
Should you want to set up such a business, is worth noting that the amended Anti-Money Laundering Act also provides for the custodian wallet providers who can be natural persons or companies and who:
- – can offer cryptographic keys with the purpose of safeguarding their clients’ digital assets;
- – can hold, store, and transfer the respecting assets.
Should you want to open a cryptocurrency company, you may also consider applying for a crypto license in Slovenia. Our local consultants can be your guide in this endeavor.
This is only one of the aspects which motivate investors to set up a cryptocurrency company in Slovenia, along the talented and specialized workforce available in this country for much lower salaries than those you would have to pay in the rest of Europe. You are welcome to address to our consultants in company registration in Slovenia all your concerns regarding the Slovenian legislation connected to cryptocurrencies.
How can an investor register a Slovenian cryptocurrency mining business?
One of the ways to start the procedure of company registration in Slovenia in the field of cryptocurrency is by setting up a cryptocurrency mining business. In this case, special procedures have to be completed by the investors of company, as presented below:
- • select the company’s activities that are prescribed by the Standard Classification of Activities of Republic of Slovenia;
- • since the cryptocurrency is a new field of activity, the investors will have to select the Other business and business consulting category (filed under no. 70.220);
- • by selecting this category, the investors will be allowed to perform a set of activities, such as consulting or operational assistance;
- • furthermore, the investor will need to register for tax purposes, and this can be done by registering as a natural person or as a legal entity.
Provided that the investor chooses to register as a natural person, it will be compulsory to report the income generated from cryptocurrency mining, with the mention that in the day in which the virtual coins are received, the recipient has to convert them into euros.
At the same time, it is necessary to know that mining activities for cryptocurrency businesses is also seen as a provision of data processing services delivered with the assistance of computers. This takes into consideration a wide range of cryptocurrency mining activities, such as resolving cryptographic algorithms, virtual tokens and others. This is why a business that is involved in this activity must also be classified under the NACE 63.11, which refers to data processing, hosting and related activities.
Register a cryptocurrency activity in Slovenia
When opening a company in Slovenia that deals with cryptocurrencies, the company’s representatives will also have to select the activities developed by the business, from one of the sections of the NACE Code. Cryptocurrency trading is included, at the moment, in the Class NACE 82.99 – N Administrative and support service activities, more exactly, the sub-section SKD 82.990.
It is important to know that this section includes a wide range of business activities, such as payments on the services related to the conversion of currencies into cryptocurrencies, services designed for virtual wallets, services related to cryptographic tokens, but it also includes business consulting services regarding the usage of virtual currencies.
What types of cryptocurrency activities are available in Slovenia?
Businessmen may set up a wide range of business activities related to cryptocurrencies, as this country is currently represented by approximately 450 crypto-merchant establishments (in the capital city), which is seen as the first crypto-city of the world, since the local authorities are trying to include crypto-payments in the city’s ecosystem. At the moment, companies offer a wide category of activities, such as:
- • selling cryptocurrency and offering consultancy services regarding the manner in which persons can use virtual currencies;
- • blockchain platforms available for various categories of investors – natural persons or legal entities;
- • specialized consultancy services offered to business entities that want to operate in this sector;
- • cryptocurrency exchange or blockchain services for purchasing various types of products;
- • operate a cryptocurrency ATM – Slovenia has already installed several ATMs for this purpose.
If you have questions on the crypto license in Slovenia, feel free to send them to our company registration advisors.
Conditions for company formation in Slovenia
In order to be officially registered, the cryptocurrency companies in Slovenia need to elaborate an application file and submit it with the Slovenian Business Register (PRS). Our consultants can help you gather all needed documents and they can also help you open a bank account in which to deposit your capital. A cryptocurrency company in Slovenia will have to be organized just like any other enterprise in one of the legal structures provided by the Company Law in this country.
Feel free to get in touch with our experts in company formation in Slovenia in order to explain to you the advantages of each legal form for your Slovenian cryptocurrency firm.
Requirements to register for custodian wallet providers and crypto exchanges in Slovenia
With the transposal of EU directives in the national legislation, Slovenia has also taken the obligation of creating a register for custodian wallet providers, as required by the European Central Bank.
This way, instead of being required to apply for a crypto license in Slovenia, a company can enter its data into the register that will be created and administered by the National Bank. This way, the Slovenian Central Bank has become the main regulatory body of this industry.
Here are some key aspects to consider when opening a cryptocurrency company in Slovenia under these new rules:
- exchange service providers, custodian wallets and services must register with the Central Bank’s register within 6 months;
- crypto exchanges and custodian wallet providers must register within 3 months from creation;
- not complying with this rules can lead to fines ranging from EUR 6,000 to EUR 120,000 for both private individuals and companies.
Choosing to create a register instead of requesting companies to apply for cryptocurrency licenses will lead to a faster and cheaper procedure, compared to those of other countries, such as the Netherlands.
If you need advice or support in setting up such a business, do not hesitate to get in contact with our Slovenian company formation consultants.
Ljubljana, the first city with a crypto-friendly mall
Slovenia stands out as a top investment destination in this sector due to the fact that it has already created a mall that will accept Bitcoin payments at every store operating in the respective location (named BTC City Shopping Mall). Our team of specialists in company formation in Slovenia can offer advice on the procedures that must be completed by a company in order to accept virtual currency payments.
Slovenia encourages cryptocurrency businesses by maintaining a close relation with the representatives of the companies operating in this sector, which are sustained through numerous conferences that tackle the current needs of such businesses. If you want to know if you need to apply for crypto license in Slovenia, our local specialists are at your disposal.
New rules on the taxation the taxation of cryptocurrency transactions
Another new law that was introduced in October 2021 but is still under debate refers to the taxation of crypto-related transactions. At the moment there are two alternatives to it:
- – the first one implies a flat tax rate of 10% for any exchange of virtual currency for Fiat currency and for purchase of goods or services with virtual money;
- – the alternative would be a flat tax would be a flat rate of 20%;
- – exemptions would be available for transactions of up to EUR 15,000.
Investors are invited to contact our team of consultants in Slovenian company formation for advice and complete guidance when opening a cryptocurrency company or any other type of company in Slovenia.