Apply for a crypto license in Slovenia

The regulation of the cryptocurrency market here is designed to ensure a sufficient level of protection for transactions with digital assets and at the same time stimulate innovation. The licensing procedure helps to establish trusting relationships with clients, investors and financial institutions. Of particular importance is the process of legalizing a business, which is carried out through the registration of a crypto license in Slovenia.

The goals and objectives of this process are varied. They are aimed at creating a stable and regulated environment for working with crypto assets. Firstly, this ensures the protection of the rights of all market participants and reduces the imperils of fraud and financial abuse. Secondly, licensing facilitates conformance with transnational indices and requirements, in particular those related to AML and CFT. Thirdly, it allows entrepreneurs to develop new products and services within the legal framework.

Legal basis for obtaining a crypto license in Slovenia

Slovenia does not have a separate law devoted entirely to virtual currencies, but the sphere of such assets is regulated through a number of mutually complementary regulations. These regulations cover different aspects. For example, the ZPPDFT-1 Act is the key act that regulates the activities of cryptocurrency platforms and services. It requires companies to conduct comprehensive identification of clients, monitor suspicious transactions, and promptly report them to the competent authorities. This is a mandatory condition for obtaining a license for crypto services in Slovenia and conducting legal activities.

The Financial Instruments Market Act (ZTFI) regulates the circulation of financial instruments in the country. If crypto assets are classified as securities (e.g. security tokens), businesses offering such assets must comply with strict requirements.

There is also the Law on Payment Services and Electronic Money, it regulates the activities of organizations that provide transfer services. If cryptocurrency platforms carry out payment transactions or issue tokens that fall under this category, they are also required to comply with the established rules. In modern realities, market regulation is impossible without taking into account transnational indices. This should be taken into account when obtaining a crypto permit in Slovenia.

The FATF recommendations pay special attention to virtual assets and service providers with them. Following these recommendations is mandatory for a country to ensure transnational recognition and reduce the imperils of financial crimes. The IOSCO recommendations and indices, which define the principles of regulation of securities markets, are applicable to crypto assets if they are considered financial instruments.

As a member of the European Union, the country is obliged to integrate European legislation into its national legal system, especially in the field of digital finance. The main regulatory act for obtaining a gambling license in Slovenia is the MiCA regulation. It sets out common rules for the issuance, trading and servicing of crypto assets in all EU countries.

The national regulator, the Securities Market Agency (ATVP), issues licenses and carries out ongoing supervision. Interaction with financial intelligence and specialized commissions ensures comprehensive control. All these factors make the process of obtaining a license to work with digital currencies in Slovenia transparent, reliable and in line with modern world indices.

Classification of crypto assets

Asset-referenced tokens (ARTs) are tokens linked to real funds, values, or baskets. They are often considered a kind of digital asset. In this regard, the requirements for issuers and operators of such tokens are significantly tightened. E-money tokens (EMTs) are equivalent to electronic money. They function similarly to virtual means of payment and are intended to be used as an object of exchange and payment. Their legal regime is similar to the regulation of electronic money in the traditional financial system.

Entrepreneurs looking to obtain a crypto license in Slovenia should also pay attention to Utility tokens. These are tokens that grant holders the right to access certain services or platforms. They are neither money nor assets, but serve to “enter” the ecosystem or use a number of functions. The requirements for such tokens in MiCA are less strict than for ARTs and EMTs, but they are still subject to regulation to protect users.

To obtain a cryptocurrency license in Slovenia, it is important to classify the asset correctly. This determines what requirements and restrictions will be applied. Tokens such as ARTs and EMTs are subject to the strictest regulation. This is due to their monetary or asset nature, which imposes increased requirements for collateral, disclosure, imperil management and AML/CFT procedures.

Utility tokens have a simpler regulatory structure. But they must ensure that their use is truly limited to the provision of services, and not to the creation of investment opportunities or electronic money. Tokens that fall under the definition of financial instruments require licensing under MiFID II and separate regulatory oversight.

Requirements for an applicant to obtain a crypto license in Slovenia

The first step is to identify the kind of asset the business intends to use. The company must then be registered. Obtaining the formal status of a virtual currency service provider (VASP), which is granted by the appropriate national authority ATVP, is crucial. This gives the business a licence to formally offer cryptocurrency services in Slovenia.

The creation and execution of internal Know Your Customer and Anti-Money Laundering protocols are essential components of a successful design. National laws must be closely adhered to by these policies. This implies that the company needs to have well-defined processes for identifying customers, keeping track of transactions, and evaluating risks.

A white paper is a comprehensive document that must be prepared if an organisation intends to issue its own token. It explains the issue's goal, the technical and financial aspects, the holders' rights, and other significant information. In certain situations, the ATVP must formally approve the token before it may be issued. Verifying if it is subject to the MiFID II rule is also crucial.

The qualification criteria for the management of the company are one of the fundamental prerequisites when applying for a crypto-activity licence in Slovenia. To guarantee the right degree of management, managers and other important individuals need to have the necessary background and standing. Professional suitability, a clean criminal record, and the honesty and openness of important individuals are all factors that the regulator considers.

The minimum capital, which is a required contribution to the corporate account, receives special emphasis. These monies belong to the business and act as a financial guarantee of its stability and solvency; they are neither commissions nor expenses. You must get familiar with the following requirements before submitting an application for a Slovenian crypto licence:

Submission procedure

The procedure for obtaining a cryptocurrency permit in Slovenia begins with careful preparation of a package of materials that are required to be sent to the financial regulator. To successfully obtain it, you need to collect a full set of documents confirming the legality of the company's activities. The list of necessary components includes:

• The company's constituent documents are the charter, the certificate of registration of a legal entity, and the memorandum of association.
• Confirmation of company registration in Slovenia - an extract from the trade register with up-to-date data.
• Financial statements include balance sheets, income statements, and documents that demonstrate sufficient capital on the balance sheet.
• Biographies of key participants and managers - CVs, certificates of no criminal record, confirmation of experience in the financial and cryptocurrency sectors.
• The business plan and service description is a detailed explanation of what the organization intends to do.
• Documents confirming conformance with technical indices - data about software, security systems, and internal policies.

All these documents must be collected in a strictly established format and submitted for consideration during the process of obtaining a crypto permit in Slovenia. Particular attention is paid to the completeness and reliability of the data. A specially created official portal of the financial regulator is used, which ensures transparency and convenience of the process. It allows applicants to upload papers electronically, fill out electronic forms with basic data about the company, managers and details of activities. The entire procedure - from filing an application for crypto permit in Slovenia to receiving the final decision - is strict, formalized and multi-layered.

Features of taxation in Slovenia

Understanding the current rates, their application and reporting features allows you to competently build business processes and reduce imperils. It will also be possible to increase the efficiency of the enterprise. For those who intend to obtain official permission for a blockchain business in Slovenia, knowledge of the tax regime becomes a prerequisite for a successful start and long-term development.

The corporate income tax is 22%. This rate has been in effect since 2022 and has been increased from the previous 19%. CIT is paid once a year based on a declaration that the organization submits to the authorities. It is important to note that when calculating the taxable base, it is possible to reduce profits due to documented expenses. This is especially relevant for crypto businesses, since operations may be associated with various costs for development, marketing, consulting services, and other related expenses. They can be legally taken into account to reduce the tax burden.

As for VAT, the standard rate in Slovenia is 22%. However, the specifics of taxation in the crypto sector in this regard have their own nuances. Not all services are subject to VAT. Thus, transactions with virtual currencies are exempt from it, which is similar to currency transactions in traditional finance. This is an important advantage for exchangers and platforms engaged in cryptocurrency trading. VAT is charged on some other services: consulting, IT, sale of NFT and digital content, etc.

Entrepreneurs who are preparing to obtain a crypto license in Slovenia should pay special attention to the withholding tax on dividends, interest and royalties. For non-residents, it is 15%. However, this rate can be reduced or changed in accordance with applicable double taxation agreements. For example, if a foreign shareholder receives dividends from a Slovenian company and resides in a country with which this jurisdiction has signed such an agreement, the WHT rate can be reduced to 5-10% if a residency certificate is available.

Obtaining a crypto license in Slovenia imposes certain requirements on tax reporting. Companies must maintain transparent and detailed accounting, submit declarations on time and ensure full control over financial flows. This allows for full conformance with the law and minimizes potential claims from authorities.

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Security and data protection

When checking cryptocurrency permits in Slovenia, special emphasis is placed on how effectively and comprehensively operators ensure the safety of data. Regulators look at the reliability of security systems and conformance with personal data regulations. Legal regulation, as well as technical indices, are designed to create a transparent environment for business, minimizing the imperils of data leakage, fraud and cyber attacks.

The list of central elements of the legal framework includes a strict and comprehensive Personal Data Protection Act. It is fully compliant with EU regulations, in particular. The regulation regulates all processes of collecting, storing, processing and transferring personal data. When applying for a permit to store cryptocurrency in Slovenia, organizations are required to ensure full conformance with this bill.

A key component of the services is the provision of reliable data security measures. Regulators require that candidates provide comprehensive data and evidence confirming the high level of protection of data systems involved in cryptocurrency activities.

The use of modern protocols to protect all transactions, data and communications ensures integrity, concealment and protection from counterfeiting. Multi-factor authentication for each user and employee greatly reduces the imperil of illegal access to systems. The use of firewalls, detection systems and prevention of possible intrusions is mandatory for those companies that expect to receive a Slovenian cryptolicense. It is important to establish regular software and operating system updates in order to eliminate known vulnerabilities.

Typical mistakes in design

Despite the obvious requirements and formal rules, many organizations commit common mistakes that significantly delay or completely block the process. The most frequent and serious obstacles include errors in the documentation when applying for a crypto license in Slovenia. The regulator requires the accuracy and completeness of the submitted materials. Even minor inaccuracies can lead to a refusal or the need to re-submit.

Incorrectly completed applications and registration forms, missing or incomplete internal AML/KYC documents, insufficiently detailed or incomplete white papers, and incorrect definition of the asset type will force the applicant to go through the process of registering a license for crypto services in Slovenia all over again.

conformance with deadlines is a key factor for successful registration. The regulator strictly controls the period for submitting all mandatory papers. Most often, such violations are associated with:

• Delays in submitting applications and supporting documents to ATVP.
• Failure to meet deadlines for submitting additional or corrected materials.
• Failure to confirm the minimum capital contribution in a timely manner.
• Delay in filing internal AML/KYC policies or white paper.
• Any failure to meet the deadlines may result in the suspension of the application review procedure or denial of licensing for crypto-activity in Slovenia.

Insufficient understanding of the requirements of the European MiCA regulation, as well as the MiFID II directive, may affect some tokens. The lack of professional support at all stages is a great hindrance. Underestimation of the requirements for the qualifications of managers and key employees will lead to refusal due to inadequacy of personnel. A comprehensive and professional approach is required to successfully obtain a license, which often requires the involvement of experts in key areas.

Technological requirements for successful registration

In order to successfully complete the process of obtaining a license to work with digital assets in Slovenia, an enterprise must ensure high technological indices. This is due to the fact that the country's regulator pays great attention to the security of cryptocurrency platforms and services. Without a modern, secure and scalable technical infrastructure, it is impossible to count on obtaining a permit and stable work in this area.

Reliable and secure storage of data is the basis for the trust of customers and regulators, since digital assets and related data require maximum protection from losses and hacks. This should be taken into account when registering a crypto license in Slovenia. It is important to use certified data centers with multi-level protection:

• physical security;
• video surveillance;
• access control systems;
• fire safety;
• backup power supply;
• conformance with transnational indices (ISO 27001 and SOC 2).

Multi-level encryption of data at rest and in transit includes the use of AES-256 algorithms and other protocols that provide protection against hacking and unauthorized access.

Companies must demonstrate that they not only understand the specifics of blockchain, but are also able to ensure effective management of crypto assets. Support for various protocols and networks, secure storage of private keys are mandatory conditions for successfully obtaining a license for processing virtual currencies in Slovenia. The regulator seeks to ensure that the company's IT infrastructure meets high indices and is able to protect the interests of clients.

Problems and disputes in the process

Slovenia is considered one of the progressive jurisdictions in Europe in the context of regulating cryptocurrency activities. However, the registration process in this country does not always go smoothly. Despite the presence of a transparent procedure and support from government agencies, entrepreneurs and companies entering the market face a number of difficulties. These include technical nuances, legal conflicts, and issues related to the interpretation of regulations. All these aspects create imperils when obtaining permission to work with crypto in Slovenia.

Minor errors or deficiencies in the documentation may result in a refusal or protracted proceedings with the supervisory authorities. That is why it is recommended to conduct a preliminary audit of future activities and be sure to organize a verification of the cryptocurrency permit in Slovenia to ensure that all elements of the business comply with the requirements of the regulator.

One of the most common types of conflicts that arise along the way are disputes with regulators. In Slovenia, the sector is supervised by the Financial Market Supervision Authority. The regulator strictly monitors conformance with AML/KYC rules, transparency of business models and financial reporting. In the process, when a company decides to apply for crypto permission in Slovenia, it is obliged to provide comprehensive data about its activities.

If a dispute with the regulator cannot be resolved at the administrative stage, it may escalate into a full-fledged court case. Companies file lawsuits against the Supervisory Authority, challenging the refusal to issue a Slovenian crypto services license, requests to amend documents, or attempts to limit the scope of activities. Court cases usually require time, resources, and qualified representation. Despite the fact that the system of this jurisdiction functions stably, businesses face losses.

Mediation is effective in the early stages of a conflict, when the parties have not yet taken a hard line. This allows for a prompt resolution of the dispute, minimizing costs and maintaining a positive relationship with the regulator. If problems arise after a business decides to file an application, mediation may be a reasonable alternative.

Procedure for extending and renewing a crypto license in Slovenia

To ensure stability and security of the market, as well as to protect the rights of users, it is extremely important to comply with the established rules. This is especially true when it comes to extending an existing permit. Let's take a closer look at the main aspects related to the procedure. Slovenian regulatory authorities strictly control conformance with the deadlines for procuring a crypto license in Slovenia. This is due to the need to conduct a full audit of all aspects of the company's activities and ensure the protection of end users.

According to current legislation and regulations, an organization must apply for a license renewal at least 60 calendar days before the expiration of the current permit. Failure to comply with the established deadlines may result in the suspension of the certificate or refusal to renew. Such a break in legal status may lead to serious financial and reputational losses.

Renewing a cryptocurrency license in Slovenia requires a company to provide a variety of documents that prove its credibility. The main requirements include:

• Preparation of a complete and up-to-date package of materials: reporting, audit reports, data on conformance with AML and CFT requirements.
• Providing updated data on the internal structure: data on management, ultimate beneficiaries, any changes in the composition of shareholders or governing bodies.
• Documents confirming that the company supports modern indices of cybersecurity and data protection.
• Submission of reports on conformance with regulations, as well as confirmation of the absence of violations and claims from interested parties.
• Proof of payment of all required fees, duties and taxes related to the Slovenian crypto license renewal process.

Despite the desire of states and regulators to support the development of the industry, they reserve the right to refuse to issue a permit for activity again if significant violations or non-conformances are identified. The main reasons for a negative response include:

• Violation of the deadlines for procuring a cryptolicense in Slovenia ;
• failure to comply with legal requirements;
• lack of proper data protection and security;
• failure to submit mandatory reports;
• lack of audit checks;
• incomplete data about the company's activities;
• the presence of legal disputes, fines, administrative sanctions;
• suspicions of dubious reputation of managers or owners;
• failure to comply with transnational indices and recommendations.

Liability for violation of crypto license terms

Companies wishing to legally operate in the sector must meet strict requirements. Legal conditions for procuring a cryptocurrency permit in Slovenia include: having a registered company in the country, appointing a qualified AML/conformance officer, developing and implementing internal policies, and complying with reporting requirements.

Administrative sanctions are the most common and concern various areas of activity of such companies. If an enterprise provides services with virtual assets without registering a crypto license in Slovenia from ATVP, this is considered a serious violation. The fine for the company is up to 700 thousand EUR. Costs for the director or actual manager are up to 70 thousand EUR. Such a violation may also entail forced termination of activities, blacklisting or even a ban on doing business in other EU countries.

For those who intend to obtain an official license for crypto-activity in Slovenia, it is necessary to understand that the law requires the presence of developed and implemented internal procedures. If this is not the case, the fine for the company is up to 300 thousand EUR, for an individual - up to 30 thousand EUR. The lack of real control, even in the presence of "paper" policies, is interpreted as non-conformance with the law.

Slovenian regulators, including the FIU and ATVP, require regular reporting. Failure to do so or refusal to do so may result in a fine of up to EUR 100,000 for a company and up to EUR 10,000 for the responsible person. This includes, for example, suspicious transactions, periodic audits, client reporting and other mandatory notifications.

The European MiCA regulation sets particularly tough penalties for deliberate manipulation, disdata or actions that mislead investors and clients. A company that has taken care to obtain a crypto license in Slovenia at the time may be fined up to 5 million EUR or up to 5% of the company's annual turnover - whichever is higher. Such actions may include concealing imperils, false promises of profitability or non-transparent fundraising schemes.

Before issuing a token, a whitepaper must be registered, which discloses data about the project. For violation, the organization will be forced to pay up to 500 thousand EUR, and an official - up to 50 thousand EUR. Even in the case of an ICO without public fundraising, the registration obligation may remain if the project plans to trade on regulated EU platforms.

If there are signs of crimes - for example, using a crypto company in fraudulent schemes - criminal liability occurs. Entrepreneurs who have received permission to work with digital currencies in Slovenia for their businesses may be deprived of liberty for up to 5 years. Blocking of assets is possible based on a court decision, including freezing of cryptocurrency wallets and bank accounts. Exclusion from the register of licensed companies and revocation of the certificate are practiced.

Termination of Permit

Voluntary revocation of a cryptocurrency license in Slovenia is carried out at the initiative of a company that has decided to cease operations or transfer them to another jurisdiction. Such a decision may be dictated by various reasons: a change in the business model, a strategic review of activities, a change in corporate structure or financial difficulties.

The voluntary cancellation procedure is quite clearly regulated. The company must submit an official application to the registration authorities, provide proof of the absence of debts to counterparties and government agencies, and complete all active operations. Clients must be notified of this and the correct storage or transfer of data must be ensured in accordance with security requirements.

If all procedures are followed correctly, the process takes a relatively short time and does not cause problems from the regulator. However, even voluntary termination of a crypto permit in Slovenia requires attention, as errors at this stage can lead to legal consequences and negatively affect the reputation.

Forced license revocation is also distinguished, which is a more serious and complex process. The reason for this may be any serious violation listed above. In such cases, the termination of a crypto license in Slovenia is accompanied by the loss of rights to conduct work and the imposition of administrative fines. Moreover, the regulator can enter data about violations into public registers, which will worsen the chances of procuring a license in other jurisdictions.

Conclusion

Developed financial infrastructure, stable legal system, high level of digitalization and loyalty of regulatory bodies make this jurisdiction attractive. But before entering the market, it is necessary to clearly understand: how to obtain a crypto license in Slovenia, what requirements are imposed on the applicant, what are the terms, volume of documentation and potential imperils.

Going through all the steps on your own can be time-consuming and expensive, both in terms of time and money. Often, entrepreneurs encounter legal obstacles, unaccounted requirements, or errors in the submission process. All of this can lead to a license being denied or the process being delayed. Therefore, it is extremely important to act wisely from the start and use the support of professionals.

Our consulting agency provides a full range of services, including registration of a cryptocurrency company in Slovenia. By contacting us, the client will have access to expert support, a personalized approach and a guarantee of conformance with legal requirements. Instead of wasting time studying legal nuances, it will be possible to focus on the development of your project, being confident in the legality and sustainability of your business in the EU.