Introduction to Bulgaria's Cryptocurrency Licensing Framework
Bulgaria has emerged as an attractive destination for cryptocurrency businesses within the European Union. Unlike some jurisdictions, Bulgaria doesn't classify crypto assets as financial instruments under its Financial Instruments Market Act (MFIA). Instead, they're treated as commodities regulated by the Obligations and Contracts Law and Commercial Law.
While Bulgaria doesn't offer specific cryptocurrency licenses, authorization from the National Revenue Agency (NRA) is mandatory for all crypto-related operations. This streamlined approach makes Bulgaria particularly appealing for digital asset entrepreneurs.
Required Authorizations for Crypto Businesses
The NRA mandates authorization for the following cryptocurrency activities:
- Crypto-to-crypto exchange services
- Fiat-to-crypto conversion services (and vice versa)
- Private key custody services
- Crypto asset storage, holding, and transfer services
Advantages of Bulgarian Crypto Licensing
👉 Why Bulgaria stands out for crypto entrepreneurs
- Fast-track incorporation: Complete registration and licensing within weeks
- Remote processes: No physical presence required during application
- Low capital requirements: Minimal startup costs compared to other EU nations
- Operational flexibility: No mandatory local offices or staff
- Cost-effective: No exorbitant application or regulatory fees
- EU membership: Provides access to all 27 EU markets
- Business-friendly taxation: Competitive corporate tax structure
- Innovation-friendly environment: Supports technological experimentation
Documentation Requirements
Applicants must submit:
Detailed descriptions of:
- Crypto products/services offered
- Business websites and software (including mobile apps)
Comprehensive service descriptions including:
- Target countries for service provision
- Cross-border activity information (per EU legislation)
Step-by-Step Licensing Process
- Company registration in Bulgaria
- Preparation of detailed crypto service descriptions
- Implementation of AML/CFT procedures (EU compliant)
- Development of compliant business platforms (website/apps)
- Payment of registration fee (50 BGN ≈ 25 EUR)
Electronic application submission with:
- Qualified digital signature
- Required documentation
Upon approval, businesses are listed in the NRA's public register and receive registration certificates within one month—significantly faster than many European counterparts. This certificate serves as Bulgaria's equivalent to a cryptocurrency license.
Ongoing Compliance Requirements
👉 Essential compliance tips for crypto businesses
License holders must:
- Maintain all legal standards and procedures
- Report operational changes promptly (name, address, website changes, etc.)
- Update NRA records accordingly
Taxation Framework for Crypto Businesses
Bulgaria offers competitive tax conditions:
- Corporate tax: Flat 10% rate (applies to resident companies)
- Withholding tax: 5% on dividend distributions
- VAT: Crypto transactions generally exempt
FAQ Section
What makes Bulgaria attractive for crypto businesses?
Bulgaria combines EU membership benefits with business-friendly regulations, low taxes, and straightforward licensing procedures—all without requiring physical presence during setup.
How long does the licensing process take?
From company registration to certificate issuance typically takes about one month—exceptionally fast compared to other EU jurisdictions.
Are there any hidden costs?
Beyond the nominal 50 BGN registration fee, Bulgaria maintains transparent fee structures without unexpected regulatory costs that burden businesses elsewhere.
Can foreign companies apply?
Yes, both domestic and foreign entities can apply, with equal requirements for natural persons and legal entities.
What happens if business details change post-licensing?
All changes must be reported to the NRA for registry updates—failure to do so may result in compliance issues.
Is Bulgaria's license recognized throughout the EU?
While Bulgaria doesn't issue EU-wide licenses, its EU membership facilitates market access across all member states under passporting arrangements.