On-shore VASP in Croatia

Office for Anti-Money Laundering (Ured za sprječavanje pranja novca – USPN): This is the primary authority responsible for supervising the implementation of AML/CFT measures by obliged entities, including VASPs. They maintain the register of VASPs.

Current Regime (Pre-MiCA): Croatia operates a registration regime for VASPs, primarily for AML/CFT supervision. This means entities providing virtual asset services must register with the USPN and comply with AML obligations. It is not a full financial services license in the traditional sense, but an AML registration.

Future Regime (Post-MiCA): From December 30, 2025, MiCA will introduce a harmonized licensing regime across the EU. Entities providing "crypto-asset services" (as defined by MiCA) will require a license from a competent national authority (likely HANFA in Croatia, in coordination with USPN for AML aspects) in one EU member state, which will then allow them to operate across the entire EU ("passporting"). This will replace the national AML registrations for the services covered by MiCA.

Generally, a legal entity incorporated in Croatia is required to apply for registration.

A registered office in Croatia is necessary.

AML/KYC Framework: This is the most critical aspect:

AML/CFT Policies and Procedures: Comprehensive internal rules and procedures for customer due diligence (CDD), enhanced due diligence (EDD), ongoing monitoring, record-keeping, and reporting suspicious transactions.

Risk Assessment: A robust risk assessment methodology for identifying and mitigating money laundering and terrorist financing risks associated with the VASP's operations, customers, products, and geographies.

Directive (EU) 2018/843 (AMLD5): https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.156.01.0043.01.ENG

Directive (EU) 2015/849 (AMLD4), as amended by AMLD5 and AMLD6: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32015L0849

Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA): https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1114 (Note: MiCA has a phased implementation, with most provisions for CASPs applying from 30 December 2025).

Croatian Financial Services Supervisory Agency (Hrvatska agencija za nadzor financijskih usluga – HANFA): While USPN handles the AML registration, HANFA, as the financial regulator, may also have a role in interpreting certain crypto-assets as financial instruments under existing securities laws, or in providing guidance, particularly concerning future MiCA implementation.

VASPs are required to register with the Ministry of Finance – Financial Intelligence Office (Ured za sprječavanje pranja novca) as part of their AML/CTF obligations.

This registration requires compliance with the Croatian Anti-Money Laundering and Terrorist Financing Act (Zakon o sprječavanju pranja novca i financiranja terorizma), which transposes EU AML Directives (specifically AMLD5).

Implementing robust KYC/CDD (Know Your Customer/Customer Due Diligence) procedures.

Reporting suspicious activities to the Financial Intelligence Office.

Appointing an AML Officer.

Establishing internal AML policies and procedures.

Segregation of Client Assets Rules (Current):

Explicit national rules for the segregation of client crypto assets from the firm's own assets are not specifically detailed within the current AML/CTF framework.

Insurance/Bonding Requirements (Current):

Cold Storage Mandates (Current):

Adopted: Yes, through Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets (commonly known as the revised Transfer of Funds Regulation - TFR). As an EU Regulation, it is directly applicable in Croatia and does not require separate national transposition legislation for its core provisions.

Effective Date: The provisions of Regulation (EU) 2023/1113 concerning crypto-asset transfers will apply from 30 December 2024.

VASP-to-VASP or VASP-to-Self-Hosted Wallet Transfers:

De Minimis Rule (for Self-Hosted Wallets):

Taxable Event: A capital gain arises when you sell or exchange cryptocurrency for fiat currency (e.g., EUR, USD), or exchange one cryptocurrency for another, or use cryptocurrency to purchase goods or services.

The standard capital gains tax rate on financial assets in Croatia is 10%.

Holding Period Exemption:

FIFO Method: For calculating the acquisition cost, the "First-In, First-Out" (FIFO) method is generally applied unless the taxpayer can clearly identify specific batches of crypto purchased (e.g., through unique wallet addresses or transaction IDs).