Custodial wallet / SaaS in North Macedonia

Regulator Name: National Bank of the Republic of North Macedonia (Народна банка на Република Северна Македонија - NBRSM)

NBRSM Official Statement (November 2021): https://www.nbrm.mk/ns-newsarticle-soopstenie_za_javnost-23112021.nspx (Macedonian)

Law on Prevention of Money Laundering and Terrorist Financing

Regulating Authority: Financial Intelligence Unit (FIU) of North Macedonia (Управата за финансиско разузнавање - УФР) is the primary authority for VASP registration and AML/CTF supervision.

Custody Providers (Virtual Asset Service Providers - VASP):

Requirement: Mandatory registration with the Financial Intelligence Unit (FIU) under the LPMALTF.

Type: AML/CTF registration.

Law on Payment Services and Payment Systems: This law regulates traditional payment services.

Regulating Authority: National Bank of North Macedonia (NBNM) (Народна банка на Република Северна Македонија) is the authority for licensing and supervising payment institutions that handle fiat currency.

Entity Targeted: General public, financial institutions under NBRSM supervision (banks, savings houses). Violation Type: While not a "violation" in the traditional sense, the NBRSM has consistently warned against the risks associated with cryptocurrencies and explicitly prohibited supervised financial institutions from dealing with them. This sets the regulatory boundary. Penalty Amount: N/A (This is a regulatory warning/stance, not a direct penalty for a specific breach by a regulated entity). Outcome: Heightened public awareness of crypto risks, reinforced prohibition for traditional financial institutions, setting a cautious regulatory tone. The NBRSM maintains that cryptocurrencies are not legal tender and do not fall under its regulatory supervision.

Entity Targeted: Individuals and organized groups operating illegal cryptocurrency mining farms. Violation Type: Theft of electricity, unauthorized connection to the electrical grid, potential charges for tax evasion, and sometimes organized crime. Penalty Amount: Seizure of expensive mining equipment (estimated value often in the hundreds of thousands of Euros), criminal charges, potential imprisonment, and financial penalties for stolen electricity. Specific penalty amounts vary per case and conviction. Outcome: Arrests of individuals, confiscation of mining hardware, disruption of illegal operations, and ongoing criminal proceedings. These actions highlight the MVR's focus on economic crime related to crypto.

Entity Targeted: Individuals and criminal groups involved in online fraud schemes often utilizing cryptocurrencies for payments or as the subject of the scam (e.g., fake investment platforms). Violation Type: Computer fraud, money laundering, organized crime. Penalty Amount: Seizure of assets, criminal charges, potential imprisonment, and restitution if convicted. Specific amounts are often under investigation or determined at conviction. Outcome: Arrests, ongoing investigations, disruption of fraudulent networks. The MVR regularly issues warnings about various online scams, many of which now involve cryptocurrency. While a single "major bust" focusing solely on crypto fraud with a public, finalized penalty within the last 3 years is hard to isolate from ongoing investigations, the MVR's continuous alerts and smaller-scale arrests demonstrate active enforcement.

Outcome: Heightened public awareness of crypto risks, reinforced prohibition for traditional financial institutions, setting a cautious regulatory tone. The NBRSM maintains that cryptocurrencies are not legal tender and do not fall under its regulatory supervision.

Outcome: Arrests of individuals, confiscation of mining hardware, disruption of illegal operations, and ongoing criminal proceedings. These actions highlight the MVR's focus on economic crime related to crypto.