Centralized exchange in Serbia

Law on Digital Assets (Zakon o digitalnoj imovini):

This law defines digital assets, regulates their issuance and trading, and explicitly designates Virtual Asset Service Providers (VASPs) as obliged entities under the general AML/CFT law. It also sets out the licensing requirements for VASPs.

Law on the Prevention of Money Laundering and Terrorist Financing (Zakon o sprečavanju pranja novca i finansiranja terorizma)

Exchange between virtual assets and fiat currencies.

Exchange between one or more forms of virtual assets.

Transfer of virtual assets.

Custody and/or administration of virtual assets or instruments enabling control over virtual assets.

Eligible Entities: Only legal entities registered in Serbia can apply for a VASP license. Foreign entities cannot directly provide services without establishing a Serbian legal entity.

The Law on Digital Assets mandates the segregation of client assets.

Article 28(2) of the Law on Digital Assets states that a virtual asset service provider must "take all necessary measures for the safekeeping of digital assets of its clients, including the segregation of clients' digital assets from its own digital assets."

The Securities Commission (SC) supervises digital assets that qualify as financial instruments (e.g., security tokens, certain stablecoins).

The National Bank of Serbia (NBS) supervises banks and financial institutions, but the regulation of virtual assets as means of payment is governed by the Law on Digital Assets, which establishes a separate regulatory framework from the NBS’s traditional supervision of payment systems.

Key Licensing Requirements: Applicants must meet stringent conditions, including:

Minimum Capital: Specified in regulations issued by the NBS or SC (e.g., minimum share capital requirements).

Management & Ownership: Fit and proper test for management and significant shareholders, demonstrating professional competence, reputation, and absence of criminal records.

Internal Controls: Robust internal procedures, risk management systems, IT security, and business continuity plans.

Whether Adopted: Yes, adopted. Serbia incorporated the FATF Travel Rule principles into its national legislation, primarily through the Law on Digital Assets (Zakon o digitalnoj imovini). This law specifically designates the National Bank of Serbia (NBS) as the supervisory authority for virtual asset service providers (VASPs) concerning AML/CFT compliance.

Threshold Amounts: Serbia generally follows the FATF Recommendation 16 for the Travel Rule. This means:

For cross-border transfers of digital assets: The Travel Rule applies to transactions with a value of EUR 1,000 or more.

For domestic transfers of digital assets: The Travel Rule also applies to transactions with a value of EUR 1,000 or more.

Originator information: Name, address, official personal document number or customer identification number (if applicable), virtual asset account number (or transaction ID if no account), and sometimes the purpose of the transaction.

Beneficiary information: Name, virtual asset account number (or transaction ID).

Secure Storage: VASPs must establish robust systems for the secure storage of collected data for a period of 5 years, as required by AML/CFT laws.

Entity Targeted: Various domestic entities and individuals operating crypto asset exchange or custody services without the required licenses. While specific names are not always publicly disclosed with detailed penalties, the NBS has consistently emphasized its licensing requirements and taken steps against non-compliant entities. Violation Type: Operating a virtual asset service provider (VASP) without obtaining the necessary operating license from the NBS, as mandated by the Digital Assets Law. This includes facilitating the exchange of virtual assets for fiat currency or other virtual assets, or providing custody services. Penalty Amount: Administrative fines, cessation of operations. The Digital Assets Law (Article 109, Paragraph 1, Point 1 and 2) prescribes fines ranging from RSD 100,000 to RSD 5,000,000 for legal entities and RSD 10,000 to RSD 500,000 for responsible persons within the legal entity, along with potential protective measures like a ban on conducting business. Outcome: Several entities have either ceased operations, come into compliance, or faced administrative proceedings. The NBS continues to monitor the market for unlicensed activity.

Entity Targeted: Individuals and organized criminal groups involved in large-scale crypto Ponzi schemes, investment fraud, and money laundering using virtual assets. Examples include actions related to the "Infinity Economics" scheme and connections to other global crypto scams like "Finiko.". Violation Type: Fraud, money laundering, unauthorized organization of games of chance (depending on the nature of the scheme), cybercrime. These often fall under general criminal statutes rather than specific "crypto violations.". Penalty Amount: Arrests, pre-trial detention, asset freezes (including virtual assets), criminal charges leading to potential prison sentences if convicted. Specific final conviction penalties (amounts/sentences) are rarely publicly detailed for each individual case by Serbian authorities, especially if investigations are ongoing or multi-jurisdictional. Outcome: Numerous arrests have been made, leading to ongoing investigations, indictments, and trials. Assets, including cryptocurrencies, have been seized. These cases are often complex and lengthy.

Entity Targeted: Individuals and legal entities earning income from digital assets (e.g., capital gains from crypto trading, income from mining, staking, or providing crypto services). Violation Type: Tax evasion related to income or capital gains derived from digital assets. Penalty Amount: Varies significantly based on the amount of unpaid tax, plus interest and potential fines as per tax laws. Outcome: Increased tax compliance, with individuals and entities reporting and paying taxes on their crypto gains. Audits and enforcement actions against non-compliant taxpayers are conducted, though details are private unless criminal charges are filed.

Outcome: Several entities have either ceased operations, come into compliance, or faced administrative proceedings. The NBS continues to monitor the market for unlicensed activity.

Outcome: Numerous arrests have been made, leading to ongoing investigations, indictments, and trials. Assets, including cryptocurrencies, have been seized. These cases are often complex and lengthy.

Outcome: Increased tax compliance, with individuals and entities reporting and paying taxes on their crypto gains. Audits and enforcement actions against non-compliant taxpayers are conducted, though details are private unless criminal charges are filed.

Identify and Verify the Identity of the Customer:

Evidence fact rs.licensing.identify-and-verify-the-identity-1 not found (may have been renamed).

Obtain Information on the Purpose and Intended Nature of the Business Relationship: Understand why the customer wants to use the VASP's services.

Perform Ongoing Monitoring of the Business Relationship:

Politically Exposed Persons (PEPs): For customers who are PEPs, their family members, or close associates.

High-risk jurisdictions: Customers from countries identified by FATF or other credible sources as having weak AML/CFT regimes.