Custodial wallet / SaaS in Slovakia

Registration, not a dedicated license: Currently, there isn't a specific "crypto custody license" in the traditional financial sense. However, entities providing services related to virtual assets, including custodian wallet providers, are considered "obliged entities" under Slovak AML law.

AML Obligations: This means they must comply with AML/CFT requirements, such as customer due diligence (CDD), transaction monitoring, suspicious activity reporting (SARs), and implementing internal risk management systems.

National Legislation: These obligations stem from Act No. 297/2008 Coll. on measures against the legalization of proceeds of crime and the financing of terrorism (Zákon č. 297/2008 Z. z. o ochrane pred legalizáciou príjmov z trestnej činnosti a o ochrane pred financovaním terorizmu). This Act has been amended multiple times to transpose the 4th, 5th, and 6th EU AML Directives.

Competent Authorities: For AML purposes, the Financial Intelligence Unit (FIU) within the Ministry of Interior is key, but the National Bank of Slovakia (Národná banka Slovenska - NBS) supervises financial institutions, which could include certain crypto-related activities if deemed financial services.

Segregation of Client Assets Rules (Current):

Insurance/Bonding Requirements (Current):

None specific to crypto custody: There are no national insurance or bonding mandates specifically for crypto custody providers under current Slovak law.

Cold Storage Mandates (Current):

No specific mandate: Slovak law does not currently mandate the use of cold storage for crypto assets. Custodians are expected to implement robust security measures, but the specific technology is not prescribed.

Qualified Custodian Definitions (Current):

Not explicitly defined for crypto: The concept of a "qualified custodian" as a specifically regulated entity for crypto assets does not exist under current Slovak law. Entities performing custody are primarily defined by their AML obligations.

Mandatory Authorization: Under MiCA (Title V), any entity providing "custody and administration of crypto-assets on behalf of clients" (Article 68) will be considered a Crypto-Asset Service Provider (CASP) and will need to be authorized by the national competent authority. In Slovakia, this will most likely be the National Bank of Slovakia (NBS).

Strict Segregation Mandate: MiCA explicitly requires CASPs providing custody services to:

"Enter into a client agreement to specify their duties and responsibilities, and to ensure that clients’ rights are clearly established, including those relating to the ownership of the crypto-assets." (Article 68(2)(b))

All other titles, including those related to CASPs and custody, will apply from December 30, 2024.

Act No. 297/2008 Coll. on Protection Against Legalisation of Proceeds of Crime and Against Financing of Terrorism (AML Act): This is the primary legislation in Slovakia governing AML/CFT. It has been amended multiple times, most notably by Act No. 397/2019 Coll., which transposed the 5AMLD and extended its scope to virtual assets and VASPs.

Custodian wallet providers: Entities that provide services to safeguard private cryptographic keys on behalf of their customers, to hold, store, and transfer virtual assets.

Identification of the Customer and Verification of Identity:

Identification of the Ultimate Beneficial Owner (UBO):

Source of Funds (SoF) and Source of Wealth (SoW): VASPs must take reasonable measures to establish the source of funds and wealth involved in high-risk relationships or transactions.

Obligation to Report: Any transaction, attempted transaction, or activity where the VASP suspects or has reasonable grounds to suspect that funds are proceeds of criminal activity or are linked to terrorist financing.

Regulator Name: National Bank of Slovakia (Národná banka Slovenska - NBS).

Entity Targeted: General public, but implicitly targets any unlicensed entities or scammers operating without proper authorization or misrepresenting their services. Violation Type: Operating without required licenses (e.g., for investment services or financial advisory), offering fraudulent investment opportunities, misrepresentation of crypto products, or not adhering to AML/CFT obligations (though the latter is harder for the NBS to enforce directly against unlicensed foreign entities). Penalty Amount: No direct monetary penalty specified for the warning itself. The "penalty" is more in the form of reputational damage for entities named (if any) and increased public awareness leading to fewer victims.

Seizure of assets: During the operation, authorities seized financial assets, movable property, and real estate worth approximately €15 million. This includes accounts, cryptocurrencies, and other assets believed to be proceeds of crime.