Bulgaria offers a favorable environment for crypto entrepreneurs seeking flexibility to launch innovative projects while maintaining robust internal structures. The Bulgarian National Bank (BNB) and Financial Supervision Commission (FSC) adopt a liberal stance toward cryptocurrency businesses, allowing them to operate within existing regulatory frameworks. Currently, the primary regulations align with EU-enforced Anti-Money Laundering (AML) directives, with anticipated adoption of broader EU-wide crypto regulations soon.
Key Regulatory Developments
MiCA Framework Implementation
The Markets in Crypto-Assets (MiCA) regulation, expected to take effect across EU member states by 2025, will standardize oversight of crypto assets and services. Key provisions include:
- Prevention of crypto asset misuse
- Environmental accountability measures
- Stricter stablecoin regulations
- Enhanced oversight of Crypto Asset Service Providers (CASPs)
DLT Pilot Regulation
Introduced in 2023, the Pilot Distributed Ledger Technology (DLT) Market Infrastructure Regulation provides a legal framework for trading and settling crypto assets classified as financial instruments under MiFID 2. This initiative serves as a regulatory sandbox for blockchain-based financial experiments.
Advantages of Bulgaria's Crypto Jurisdiction
Entrepreneurs benefit from:
- Rapid incorporation/licensing (processes completable remotely)
- Low capital requirements (minimum €1 for LLC formation)
- EU market access through Bulgaria's reputable membership
- No local office/employee mandates, enabling fully remote operations
- Pro-business tax policies (10% corporate tax rate)
AML Compliance Under MAMLA
The Measures Against Money Laundering Act (MAMLA) mandates:
- Customer Due Diligence (CDD) procedures
- Reporting transactions exceeding €15,000
- Beneficial ownership disclosures
- Suspicious activity reporting to Bulgaria's Financial Intelligence Directorate
Licensing Process for Crypto Businesses
Required Services Needing Authorization:
- Crypto-to-crypto exchanges
- Fiat-to-crypto exchanges
- Private key custody services
- Crypto asset storage/transfer services
Application Steps:
- Register a Bulgarian entity (2-8 weeks processing)
- Develop compliant AML/CTF procedures
- Launch operational website/applications
Submit application with:
- Detailed service descriptions
- Target markets list
- Cross-border activity disclosures
- Pay €25 registration fee
Successful applicants receive certification within 30 days, with ongoing compliance monitoring required.
Tax Considerations
| Tax Type | Rate | Notes |
|---|---|---|
| Corporate Tax | 10% | Applies to resident companies |
| Dividend Withholding | 5% | For corporate shareholders |
| VAT | 20% | Standard rate; crypto exempt |
| Social Contributions | 24.3% | Employer/employee split |
Bulgaria's 70+ double taxation treaties provide additional fiscal advantages.
Consumer Protection Standards
Key requirements for crypto businesses:
- Transparent pre-contract information
- Prohibition of unfair contract terms
- Clear promotional material labeling
- 14-day right of withdrawal
- Mandatory notification of terms changes
Operational Reporting
Companies must:
- File annual financial statements
- Report crypto holdings in accounts
Undergo audit if exceeding:
- €1M in assets OR
- €2M revenue OR
- employees
FAQ: Bulgaria Cryptocurrency Regulations
Q: How long does crypto licensing take in Bulgaria?
A: Approximately 1 month post-application approval.
Q: Are physical offices required for crypto firms?
A: No – Bulgaria permits fully remote operations.
Q: What's the corporate tax rate for crypto businesses?
A: A competitive 10% on profits.
Q: Does Bulgaria tax cryptocurrency holdings?
A: Crypto assets aren't taxed directly but must be reported in annual filings.
Q: Can foreign entities obtain Bulgarian crypto authorization?
A: Yes – both foreign individuals and legal persons may apply.
Q: Is Bulgaria MiCA-compliant?
A: Full MiCA adoption is expected by 2025 alongside EU member states.
👉 Discover how Bulgaria's crypto-friendly policies can benefit your project