Crypto ATM / kiosk operator in Bosnia and Herzegovina

No specific "crypto custody license" exists. Unlike some EU countries with dedicated VASP (Virtual Asset Service Provider) licensing regimes that explicitly cover custody, BiH has not yet introduced such a license.

AML Registration for VASPs: The primary regulatory requirement for entities providing services related to virtual assets, including those that might engage in custody (e.g., exchanges holding client funds), stems from the AML/CFT framework. BiH has aligned its AML legislation with FATF recommendations, which includes treating Virtual Asset Service Providers (VASPs) as obliged entities.

The Law on Prevention of Money Laundering and Terrorist Financing (Zakon o sprečavanju pranja novca i finansiranja terorističkih aktivnosti) mandates that VASPs, which would typically include entities offering custodial services for virtual assets, must register with the relevant authority (likely the Financial Intelligence Unit - FIU BiH) and implement robust AML/CFT procedures, including Know Your Customer (KYC) checks.

Law on Prevention of Money Laundering and Terrorist Financing of Bosnia and Herzegovina (Official Gazette of BiH, No. 100/17, 36/18, 55/19, 32/22, 12/23, 12/24). While an official English translation with a direct government URL for the latest consolidated version can be hard to pinpoint, the law is accessible via official legislative databases. The Ministry of Security often publishes updates or related information.

Under the newly adopted AML/CFT Law in Bosnia & Herzegovina, VASP registration and oversight is subject to a three-way regulatory split depending on the entity's incorporation location (FBiH, Republika Srpska, or Brčko District), with the FIU retaining a coordinating AML/CFT role but no longer being the sole first point of contact for VASP registration.

Ministry of Security of BiH (responsible for AML policy): http://www.msb.gov.ba/?lang=en (You may need to navigate to legislative sections to find the specific law).

Bosnia and Herzegovina now has a state-level AML/CFT framework that expressly covers virtual asset/virtual currency service providers, and Republika Srpska has a dedicated registration/notification regime for virtual currency service providers administered by the RS Securities Commission. While there is still no MiCA-style, fully harmonized crypto-asset licensing law at the state level, RS does operate a specific regulatory and registration regime for crypto businesses, so it is no longer correct to say that BiH operates under ‘no specific licensing regime’ or lacks any mandated authority for crypto businesses.

For virtual asset service providers, AML/CTF registration is no longer best described as an informal or merely ‘implied’ reporting registration. In line with FATF standards and recent reforms (including Australia’s Tranche 2 and comparable EU/Ireland approaches), VASPs are explicitly required to register with the competent AML/CTF authority (e.g., AUSTRAC or the Central Bank) before providing designated services, and must comply with a comprehensive set of ongoing AML/CTF obligations. While this registration is technically for AML/CTF purposes rather than a full prudential or conduct-of-business licence, it is a formal, mandatory regime with significant, licence-like compliance and enforcement requirements—not simply an implied reporting status.

Cryptocurrency exchanges in Bosnia and Herzegovina (BiH), particularly in Republika Srpska, require registration as a VASP with the Securities Commission and obtaining a specific crypto license or authorization, especially for exchange, custody, or related services. Pure crypto-to-crypto exchanges may still face ambiguity, but fiat-related activities trigger stricter oversight under AML laws and banking agencies.

Zakon o sprečavanju pranja novca i finansiranja terorističkih aktivnosti (Law on Prevention of Money Laundering and Financing of Terrorist Activities) – Official Gazette of BiH, No. 13/2024.

Crucial Amendment: The latest significant amendments, particularly those published in Official Gazette of BiH, No. 13/20 (Law on Amendments to the Law on Prevention of Money Laundering and Financing of Terrorism), explicitly brought Virtual Asset Service Providers (VASPs) under the scope of obliged entities. This amendment defined virtual assets and established obligations for entities dealing with them.

Exchange between virtual assets and fiat currencies.

Transfer of virtual assets.

Identification and Verification of the Customer:

Identifying the customer (and any person acting on behalf of the customer) and verifying their identity using reliable, independent source documents, data, or information.

For natural persons: full name, address, date and place of birth, unique identification number (e.g., ID card, passport number).

For legal entities: name, legal form, address of registered office, registration number, names of directors/authorized persons, and proof of incorporation.

Identification of the Beneficial Owner:

Identifying the beneficial owner(s) and taking reasonable measures to verify their identity.

Understanding the ownership and control structure of the customer (for legal entities or arrangements).

Purpose and Intended Nature of the Business Relationship:

Understanding the purpose and intended nature of the business relationship or occasional transaction.

Conducting ongoing monitoring of the business relationship and transactions undertaken throughout the course of the relationship to ensure that transactions are consistent with the VASP's knowledge of the customer, their business, and risk profile.

Keeping documents, data, or information up-to-date.

Standard CDD: Applied to regular customer relationships.

Simplified CDD (SCDD): Applicable only in cases of demonstrably lower risk, specified by law or regulation.

Enhanced CDD (EDD) is required only for specific high-risk activities in Bosnia & Herzegovina, not universally for all higher‑risk situations.

Transactions or business relationships with Politically Exposed Persons (PEPs).

Cross-border correspondent relationships involving virtual assets.

Transactions or relationships involving high-risk geographic areas.

Complex, unusually large transactions, and all unusual patterns of transactions that have no apparent economic or lawful purpose.

Entity Targeted: An organized international criminal group. Violation Type: International drug trafficking, organized crime, and money laundering through cryptocurrencies. The use of encrypted applications (Sky ECC and Anom) and cryptocurrencies was central to their operations for communication and financial transactions.

The case highlights the growing use of cryptocurrencies by organized crime groups in BiH and the region for illicit financial flows, prompting law enforcement to adapt.

SIPA Official Statement (May 2023): "U BiH i inostranstvu realizovana međunarodna akcija „Black Diamond“ (In BiH and abroad, the international operation "Black Diamond" was realized)"

Klix.ba News Report (April 2023): "Akcija "Crni dijamant": Uhapšene tri osobe u Sarajevu, zaplijenjena droga i oružje (Operation "Black Diamond": Three people arrested in Sarajevo, drugs and weapons seized)"

Date: Operations and arrests occurred primarily in April and May 2023, with follow-up actions and indictments in subsequent months. The investigation had been ongoing prior to these public operations.