Crypto-funded debit card 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.

Exchange between virtual assets and fiat currencies.

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

This is the overarching AML/CFT law in Serbia, applying to all obliged entities, including VASPs. It sets out the general rules for customer due diligence, suspicious transaction reporting, record-keeping, and internal controls.

Identify and Verify the Identity of the Customer:

Identify and Verify the Identity of the Customer:

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.

Defines "virtual currency" (kriptovaluta) as a digital record of value that is not issued or guaranteed by a central bank or public authority, nor necessarily linked to a fiat currency, but is accepted by natural or legal persons as a medium of exchange and can be transferred, stored, and traded electronically.

Taxable Event: Realization of capital gains from the disposal of virtual assets.

Individuals: 15% of the capital gain. This is applied under the Law on Personal Income Tax (Zakon o porezu na dohodak građana).

Holding Period Reduction (Important Nuance): While for some other assets (like real estate), a reduced tax base or exemption may apply after a certain holding period, the Serbian tax law as it applies to virtual assets generally levies the 15% on the net gain without such a reduction for holding periods. The common misconception about a 10% annual reduction up to 80% is primarily for immovable property. For virtual assets, the 15% rate on the net gain is consistently applied, with the benefit of loss offset.

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.

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.