In the country that we will consider today, crypto is regulated by EU law, so a license is needed mainly to meet AML/CFT demands. Although national powers have recognized the significance of fresh technologies and even shed light on digital money taxation, they currently favor a liberal approach to digital currency regulation, which means that a full regulatory substructure for crypto-assets will not be implemented anytime soon.
Under MiCA, a firm seeking to provide crypto-asset services in Slovakia must establish an EU entity with real substance and apply for CASP authorization with the National Bank of Slovakia. Capital requirements depend on the type of services provided.
Slovakia now applies the EU crypto-asset framework under MiCA, while legacy AML-related local requirements remain relevant where applicable. Certain efforts for the legal regulation of crypto estates can be drawn from the norms of public law.
The first regulation of crypto preferences in the Slovak Republic began with an amendment to the Income Tax Law. The concept of the so-called selling of virtual money and its inclusion in the taxpayer’s obligation to tax revenue obtained from the interchange of crypto-assets for property was introduced.
Despite the lack of regulation, Slovakia’s lawfullment boasts a number of profits that are attractive to crypto businesses looking to obtain a permission in a European lawfullment. If you want to take advantage of low business-company formation values, a competitive and business friendly tax government, nominee director and shareholder services, no limitations on non-citizens property and workers, and the highest level of productivity in Central and Eastern Europe, read on to find out how to become a permitted crypto-business in the country.
General information
| Regulator | National Bank of Slovakia (NBS) — competent authority for crypto-asset service providers under MiCA |
| License Type | Crypto-Asset Service Provider (CASP) authorization under MiCA. Covers exchange, custody, transfer, execution of orders, portfolio management, advice, and operation of trading platforms |
| Minimum Capital | €50,000 / €125,000 / €150,000 depending on services provided, or one quarter of annual fixed overheads (whichever is higher) |
| Time to Obtain | Several months on average under MiCA authorisation process, depending on application completeness and regulatory review |
| Passporting (EU) | Yes. CASP authorisation under MiCA allows provision of services across the EU after notification |
| Local Office | Required. The company must be established in an EU Member State (e.g. Slovakia), with real presence, local management, and effective administration |
Types of CASP services under MiCA in Slovakia
- exchange of crypto-assets for funds
- exchange of crypto-assets for other crypto-assets
- custody and administration
- transfer services
- reception and transmission of orders
- execution of orders
- placing of crypto-assets
- advice on crypto-assets
- portfolio management
- operation of a trading platform
Steps to cryptocurrency exchange license in Slovakia achieving
- Enroll a business-company in country.
- Get a local superscription and a local manager.
- Incorporate an EU entity.
- Define the crypto-asset services to be provided.
- Prepare governance, AML/CFT, ICT and security policies.
- Prepare capital and financial projections.
- Submit the application to NBS.
- Respond to regulatory queries.
- Upon authorisation, use MiCA passporting if needed.
Crypto business-company in Slovakia
In order to make the cryptocurrency business more transparent and reliable, Slovakia follows the rules for combating money laundering (hereinafter referred to as “AML”) and terrorist financing (hereinafter referred to as “CFT”) set by the EU.
To execute with AML/CFT regulations, crypto companies must adhere to the following principles:
- Determining the nature and complexity of cryptographic operations and types of clients in the context of the relevant rules.
- Growth and realization of policies and operations to manage the risks associated with money laundering and terrorist financing.
- Ensure that staff are adequately trained and able to navigate money laundering, terrorist financing and data protection laws related to financial crime mitigation, as well as identifying high-risk clients and situations.
- Design and implement CDD (customer due diligence) and KYC policies to ensure customer identification throughout all business relationships.
- Implement domestic operations to identify political actors.
- Constant monitoring of operations in agreement with the principles of risk assessment.
- Report suspicious transactions and customers to the competent authorities in agreement with the AML Law.
In Slovakia, AML/CFT compliance is enforced by the Slovak Financial Intelligence Unit, which develops and implements controls on cryptocurrency transactions. This body monitors crypto companies and is authorized to request relevant reports containing customer data, which removes the anonymity factor in crypto activities, but strengthens the credibility of Slovak crypto companies.
Does Slovakia tax crypto?
By agreement with Income Tax Law, revenue gotten from the sales of crypto-assets is subject to taxation. For tax purposes, any interchange is considered a sale of digital currency, i.e. interchange of currency for property or interchange of e-money for the provision of a service or its transfer for a fee, including interchange for another crypto-assets.
The income tax rate depends on the tax base of the taxpayer. It is applied as follows:
- 19% of that part of the tax base which does not exceed the amount of EUR 41,445.46 (inclusive);
- 25% of that part of the tax base which exceeds the amount of EUR 41,445.47 (i.e. EUR 41,445.47 or more).
How are cryptocurrencies regulated in Slovakia?
TLA enrollers and supervises crypto-assets companies in Slovakia. Below is a list of demands that we will help you fulfill:
- The business-company is enrollment in Slovakia
- Lawful superscription
- Local manager
- Certificates of criminal record of all participants
- Description of the corporation’s activities and planned services
- Standard EU crypto documents on anti-money washing, counter-terrorist financing policies and processes
- EU standard KYC processes and systems
You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.