Slovakian cryptos regulation

Published:
May 21, 2023
best places to visit in slovakia 50.jpgw3

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. 

Does Slovakia tax crypto? 

1. For individuals – 19% tax applies if the profit is less than EUR 38,000. If the revenue is higher, the tax rate is 25%. These taxes apply to people earning money through crypto in country.
2. For legal entities, the income tax is 21%. However, if the income is up to EUR 49,790, the tax rate is 15%.

How are crypto controlled in Slovakia? 

The Bank of country is liable for monetary politics support. NBS determines cryptos as cryptography-based decentralized assets or digital assets.

Related insights

Obtaining residence permit and citizenship in Turkey when buying a property

Dreaming of life under the Turkish sun? A Turkish Residency Permit is your ticket to a carefree holiday. Residency allowance not only legalizes your stay for a year or more but also opens doors for work, depending on the type of document obtained. Learn who can get the coveted status, under what terms, and what…

Read more 03.06.2024

NIE NUMBER in Spain: Definition, Types, Procedure and Papers

Provided that you are a non-citizen, buying a property in Spain is possible with the NIE. It is your unique number as a non-citizen. It’s vital for various activities, from buying housing to making a bank account. However, it’s important to note that the NIE alone doesn’t grant lawful residency. This article will guide you…

Read more 28.05.2024

How to Purchase a Property in Spain

Buying a property in another state offers numerous chances, from generating rental income to becoming a resident or even a citizen. With a diverse range of places to choose from, finding the ideal house in Spain is within reach. While the acquiring procedure may appear daunting at first, this guide provides a clear and concise…

Read more 28.05.2024

Gaming license in Portugal

The gaming industry in Portugal has seen substantial growth, prompting both local entrepreneurs and global investors to explore opportunities in this lucrative market. Understanding the legal framework for obtaining a gaming license in Portugal is essential for those interested in documenting this sector. This comprehensive guide covers the essentials of the gaming-license process, the associated…

Read more 27.05.2024

Buying A House In Spain In 2024

Acquiring housing requires careful navigation of legal procedures and a keen awareness of the accommodation market. Before investing, in-depth investigation is vital to avoid scams, understand taxation, and stay ahead of market changes.  This guide provides valuable insights for a smooth transition to homeownership in Spain, whether you’re interested in coastal areas or major cities….

Read more 27.05.2024

Buying an apartment in Spain: Is it a good idea

Acquiring a property in Spain can be an appealing choice for numerous international investors. The country boasts stunning beaches, a pleasant climate, and a rich culture that draws people from various backgrounds. In this article, we will delve into the reasons why investing in an apartment in Spain is a wise decision. Embracing the Mediterranean…

Read more 21.05.2024

How does the Process of Buying a Property in Turkey Work?

Turkey, with its rich cultural heritage, stunning landscapes, and booming real-estate field, has become an increasingly popular destination for possession investing. Whether you’re looking for a holiday home, a retirement retreat, or a lucrative investing possibility, guiding the method of Purchasing Property in Turkey can be an exciting yet daunting task. In this comprehensive guide,…

Read more 13.05.2024

Crypto license in the Dominican Republic

Crypto has significantly altered the economic landscape globally, offering innovative ways to transact and invest. As these digital assets gain traction, various countries are establishing adjustment substructures to oversee their use and protect investors. The Dominican Republic, known for its progressive policy to technology and finance, has also begun to navigate the complex terrain of…

Read more 24.04.2024

5 Best jurisdictions for Gaming license

In the vibrant realm of online-gaming, selecting a jurisdiction for achieving gaming permission transcends a mere adjustment formality; it’s a crucial decision impacting field access, tax obligations, and the brand’s prestige. A wise choice can unlock doors to profitable fields, build trust among players and partners, and ensure a stable legal framework conducive to growth….

Read more 17.04.2024

In which countries is it better to buy Real Estate in 2024?

In the ever-evolving landscape of global real-estate acquisition, the question of where to invest money is crucial. While the past may offer some insights, the future is where depositors aim to position themselves for success. Now, in 2024, various factors come into play when determining the best countries for real-estate acquisition. From economic solidity to…

Read more 16.04.2024

Top 6 Best Offshore Jurisdictions for crypto:

In recent years, the cryptocurrency field has witnessed exponential growth, attracting investors and enthusiasts alike from all corners of the globe. However, navigating the legal landscape surrounding cryptocurrencies can be complex, with adjustments varying significantly from one lawfulment to another. For those looking to establish a crypto-related business or simply seeking a favorable adjustment circumstances…

Read more 08.04.2024

What is important to know when buying Property in Turkey?

Whether you’re considering purchasing a holiday home, an investment in property, or relocating permanently, buying real estate in Turkey can be a rewarding venture. However, like any possessions purchase, it requires careful consideration and research to ensure a smooth transaction and avoid potential pitfalls. In this guide, we’ll explore the key factors to keep in…

Read more 21.03.2024