DeFi protocol frontend in Slovenia

Act on the Prevention of Money Laundering and Terrorist Financing (ZPPML-1):

Competent Authority: The Financial Administration of the Republic of Slovenia (FURS) (Finančna uprava Republike Slovenije) is the primary supervisory authority for AML/CTF compliance, including the registration and supervision of VASPs.

Current Regime (ZPPML-1): Registration. Slovenia currently requires VASPs to register with FURS before they can operate. This is a registration for AML/CTF purposes, focusing on preventing illicit financial activities, rather than a full operational license that would typically cover aspects like prudential requirements, consumer protection, or market integrity comprehensively.

Future Regime (MiCA): Licensing. The EU's Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114) will introduce a comprehensive, harmonized licensing framework for crypto-asset service providers (CASPs) across all EU member states. MiCA will come into full effect for most crypto-assets by December 30, 2024 (stablecoin rules apply from June 30, 2024). Once MiCA is fully implemented, it will largely supersede the national AML-driven registration requirements for the activities it covers, introducing a full licensing regime with passporting rights across the EU.

Providers of services for the exchange between virtual currencies and fiat currencies.

Providers of services for the exchange between virtual currencies and fiat currencies.

Providers of services for the exchange between virtual currencies and fiat currencies.

Providers of services for the exchange between virtual currencies and fiat currencies.

Providers of services for the exchange between virtual currencies and fiat currencies.

Requirement: Registration with FURS under ZPPML-1.

Activities Covered: Providing platforms or services where users can buy/sell virtual currencies with fiat currencies (e.g., EUR, USD) or exchange one virtual currency for another (e.g., BTC for ETH).

Future under MiCA: Will require a CASP license from a competent authority (which Slovenia will designate, likely Bank of Slovenia or ATVP) for operating an exchange platform.

If processing fiat payments for crypto transactions (e.g., enabling users to deposit/withdraw EUR to/from an exchange account):

This could require a Payment Institution (PI) license or Electronic Money Institution (EMI) license from the Bank of Slovenia (Banka Slovenije). This is separate from VASP registration and is generally a more robust licensing process.

If processing virtual currency payments (e.g., enabling merchants to accept crypto payments, converting them to fiat, or simply facilitating crypto-to-crypto transfers):

This generally falls under the VASP definition of "providers of services for the transfer of virtual currencies" and would require registration with FURS under ZPPML-1.

Future under MiCA: Activities like "execution of orders for crypto-assets" or "transfer services for crypto-assets" would require a CASP license.

VASP Registration: Entities providing services of safeguarding private cryptographic keys on behalf of clients, or holding, storing, and transferring virtual currencies, are classified as "virtual asset service providers" (VASPs) under ZPPDFT-2.

Obligation to Register: VASPs must register with the Office for Money Laundering Prevention (UPPD). This is a registration requirement, not a full prudential licensing regime akin to banks or investment firms, but it entails strict AML/CFT compliance obligations.

Implementation of robust internal AML/CFT policies, procedures, and controls.

Risk assessment frameworks (customer, product, geographical risks).

Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) measures.

Record-keeping of transactions and customer data.

Reporting of suspicious transactions to UPPD.

Appointment of an AML officer.

Training for relevant employees.

Fit and proper assessment for management and beneficial owners (though not as extensive as for licensed financial institutions).

Issuing warnings and guidance: Educating the public about risks and informing businesses about compliance requirements, especially in anticipation of EU-wide regulations like MiCA (Markets in Crypto-Assets).

Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) supervision: The Office for Money Laundering Prevention (UPPD - Urad RS za preprečevanje pranja denarja) is the primary authority here. While they conduct supervision and impose measures, details of individual enforcement actions against specific companies (with fine amounts and outcomes) are not usually made public in the same way as in some other jurisdictions.