Slovakian cryptos regulation

The jurisdiction that we will review today is included in the list of states that already identify Bitcoin and additional digital currencies. However, in 2018, the state strengthened its position regarding virtual money and firms interested in it. Slovak banks have begun liquidating the accounts of firms associated with crypto at the initiative of the local Slovak Cryptocurrency Regulation. They represented pan-European restrictions, tightening control over the crypto space.

It should be noted that after registration in accordance with Law 279/2020 of amendments to the Law on the prophylaxis of Money Laundering and the prophylaxis of Terrorist Providing, all entrepreneurs providing favors for the exchange and storage of digital valutas must enroll in the corresponding manner to carry out actions with cryptos in Slovakia.

Lawfulment on crypto in Slovakia

If you want to start an e-currency biz in country, you don’t need to comply with any specific laws, but the National Bank has amended the Income Tax Act, adding new provisions for the taxation of virtual tokens. 

Among the main features covered by the revised income tax law, the most important are those defining crypto, which are considered to be valuable digital assets that are not guaranteed by the National Bank or any other institution. Furthermore, they do not have currency status or a means of payment, but can be used by natural and legal persons as a means of remittance.

Benefits of permission in Slovakia

Therefore, all crypto companies without a permit are straightaway blocked by administration authorities. However, if you want to work legally, you must be licensed. This solution has a number of significant profits: 

• Simple and cheap;
• High Standard Central European Countries;
• Allows you to conduct various cryptocurrency-related transactions;
• Standards compliant and easy to implement. 

Most crypto enthusiasts prefer to only use licensed sites. Since you can be sure it’s not a scammer, your data is well protected and your transfers are completely safe. 

Types of permissions

Depending on the type of crypto actions, the Trade Office issues the next permissions:

1. Crypto interchange permissions in state for businesses that facilitate transfers of virtual valutes with other money, fiat valutes and other assets, inclusive of equipment such as crypto ATMs;
2. Wallet service permission for firms that protect crypto assets or private crypto keys, or store and transfer crypto assets on behalf of clients.

Demands to achieve a crypto in country

Next is a list of demands you need to meet:

• Firm enrollment in Slovakia; 
• Valid address; 
• Local manager; 
• Criminal records of all participants;
• Description of corporate events and program services;
• Standard EU Encrypted Document on Anti-Money Laundering and Counter-Terrorist Sponsoring Policies and Procedures;
• KYC process and system compliant with EU standards. 

Documents that needed

• Registration form 
• Articles of Incorporation and other corporate documents
• Confirm office space availableness for enrolled office in country (virtual office allowed) 
• Corroboration of permanent residency for corporation creators and directors
• Corroboration of relevant professional competencies to enable establishers and executives to carry out crypto actions
• A certificate released by the Attorney General’s Office (or the adjustments of the home state) Confirm Founder and Senior and senior managers have not been convicted of white collar crimes or any other offenses related to the proposed economic actions(these certificates should be issued no earlier than the previous 90 days) 

Step-by-step instruction 

In country, it does not take long to achieve a license. The rules for obtaining a permit are relatively simple. Therefore, every applier must go through a few simple steps: 

1. Enroll the corporation in Slovakia;
2. Notify government agencies of your intention to conduct crypto firm; 
3. pay fees; 
4. get a bank account; 
5. Collect a package of documents;
6. Apply for a permit. 

It takes 2-3 weeks to enroll a firm in Slovakia, about two weeks to open a bank account and 3-4 weeks to consider a license application. Typically, a license can be issued within 2. 5 months of incorporation, provided all papers are in place.