Bitcoin and cryptocurrencies gain legality in Serbia

Bitcoin and cryptocurrencies gain legality in Serbia

Contrary to previous policies, Serbia’s government has now allowed the extraction, purchase and sale of digital assets and the provision of related services. This was officially signed into law by the law announced on December 29.

The draft law, which was presented to parliament in October and passed in November, was officially announced on Tuesday. The “Digital Asset Law” published in the country’s official newspaper will officially be implemented 6 months later.

The Serbian Securities Commission and the National Bank will be tasked with overseeing the law, while digital asset service providers will be able to begin work after receiving documents showing that they are subject to the new law. In Serbia, which has followed a negative policy against cryptocurrencies in the past, the central bank announced in 2014 that Bitcoin is an illegal payment tool.

Eastern European countries invest in technology
It is also noteworthy that Serbia’s move to the law coincides with a period when Eastern European countries invested in technology. While similar breakthroughs are seen in Romania and Bulgaria, 6 percent of Serbia’s gross national product consists of technology investments.

With the new law, there is no requirement to approve the “white papers” of digital assets, but advertising digital assets that have an unapproved “white paper” will be prohibited. Restrictions will also be imposed on the distribution of such digital assets.

Licensing obligation to crypto money exchanges
The law also requires digital asset exchanges to obtain licenses. OTC, that is, over-the-counter exchanges and smart contracts, has also opened the way.

The law does not cover cryptocurrency miners, who are entitled to acquire digital assets through mining.

However, financial institutions under the control of the Central Bank of Serbia are still prohibited from having any connection with digital assets. These institutions only have the right to keep crypto passwords, but they do not have the right to convert their assets into cryptocurrencies or other digital assets connected to them.

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