Crypto License in Bulgaria

Introduction to Crypto Licensing in Bulgaria

Bulgaria is rapidly emerging as one of the most attractive jurisdictions in the European Union for launching cryptocurrency businesses. Known for its cost-effective structure, favorable tax policies, and EU membership, Bulgaria provides a legal framework that is especially appealing to startups, crypto exchanges, wallet providers, and blockchain projects.

In this comprehensive guide, you will learn everything about obtaining a crypto license in Bulgaria, including legal requirements, licensing process, regulatory framework, costs, taxation, technical compliance, and the benefits of setting up your virtual asset business in this jurisdiction.

Why Choose Bulgaria for a Crypto License?

• EU Member State: Allows access to the European Economic Area (EEA) and EU passporting rights.

• Cost-Effective: Low licensing fees and maintenance costs compared to Malta or Estonia.

• Crypto-Friendly Regulation: Bulgaria has adopted AMLD5 and supports crypto asset businesses under a defined VASP regime.

• Fast Incorporation: Company setup and license registration can be completed in weeks.

• Low Corporate Tax: A flat 10% corporate income tax applies to crypto companies.

• Skilled Workforce: Access to experienced IT, finance, and legal professionals.

Legal Framework for Crypto Regulation in Bulgaria

The primary laws governing crypto businesses in Bulgaria are:

• The Measures Against Money Laundering Act (MAMLA)

• The Law on Measures Against the Financing of Terrorism

• EU AMLD5 Directive Implementation

• GDPR for data protection

Crypto businesses must register with the Bulgarian Financial Supervision Commission (FSC) and/or the National Revenue Agency (NRA) depending on the scope of services offered.

Definition of Virtual Asset Service Providers (VASPs):

VASPs include businesses that:

• Exchange crypto assets and fiat currencies

• Exchange between crypto assets

• Offer custodial wallet services

• Operate crypto trading platforms

Types of Crypto Licenses in Bulgaria

1. Registration as a Virtual Asset Service Provider (VASP)

Required for:

• Crypto exchanges

• OTC desks

• Trading platforms

• Custodial wallet providers

2. Financial Institution License (Optional)

Required for:

• Companies offering crypto-related financial services (lending, investment advice)

• Higher compliance obligations and capital requirements apply

Crypto License Requirements in Bulgaria

To qualify for a Bulgarian crypto license, the applicant must:

• Incorporate a Bulgarian company (EOOD or OOD)

• Have a real or virtual office address in Bulgaria

• Appoint a local Anti-Money Laundering (AML) officer

• Submit a detailed business plan

• Demonstrate secure IT infrastructure and data protection

• Provide KYC/AML policy documentation

• Meet “fit and proper” criteria for directors and UBOs

Required Documents:

• Certificate of incorporation

• Articles of association

• IDs and proof of address for shareholders/directors

• AML policy

• Risk management procedures

• IT security plan

• Business continuity and disaster recovery plan

Step-by-Step Process to Obtain a Crypto License in Bulgaria

Step 1: Company Formation

• Choose legal form (EOOD for single shareholder or OOD for multiple)

• Register with the Bulgarian Commercial Register

• Appoint directors and define scope of activity

Step 2: Prepare Licensing Documents

• Draft and translate AML/KYC policies

• Appoint an AML Officer (can be outsourced)

• Create a detailed business and risk plan

Step 3: Submit Application

• File VASP registration with the NRA

• Notify the FSC if offering crypto investment or custody services

• Pay administrative and registration fees

Step 4: Regulatory Review

• The NRA reviews your application and policies

• Background checks are conducted on directors and UBOs

• Decision issued within 30–60 business days

Step 5: Post-License Compliance

• Start operations

• Submit regular reports and audits

• Stay up to date with new EU crypto regulations (e.g., MiCA)

Technical & Security Requirements

Licensed crypto firms must maintain high IT and cybersecurity standards:

• Two-Factor Authentication (2FA): Mandatory for admin access.

• Secure Hosting: Ensure encrypted storage and transmission.

• Data Backup & Redundancy: Implement regular backups and failover systems.

• Penetration Testing: Regular testing of network and application vulnerabilities.

• ISO/IEC 27001: Recommended standard for information security management.

MiCA Regulation and Its Impact

The Markets in Crypto-Assets (MiCA) regulation will reshape the European crypto landscape in 2025. Bulgarian license holders should prepare for:

• New license classification: Crypto-asset service providers (CASPs)

• Whitepaper obligations for token issuance

• Stricter AML, governance, and capital requirements

• Enhanced consumer protection and liability measures

MiCA will replace fragmented local regulations with unified EU rules, offering a single license regime across the EEA.

Costs of Obtaining a Crypto License in Bulgaria

Total setup costs range between EUR 5,000 to EUR 8,000 depending on scope and service providers.

Taxation for Crypto Companies in Bulgaria

• Corporate Income Tax: 10% flat rate

• Dividend Tax: 5% (if distributed to individuals)

• VAT: Not applicable to most crypto exchange services

• No crypto-specific tax regulations (yet MiCA may change this post-2025)

Tax optimization and double-taxation treaty benefits are available for international investors.

Ongoing Compliance Obligations

Crypto-licensed companies in Bulgaria must:

• Maintain AML/KYC records

• File annual tax returns and financial statements

• Notify regulators of material business changes

• Update compliance manuals annually

• Conduct AML/CFT training for staff

• Monitor customer transactions and report suspicious activities

Bulgaria vs Other Crypto Jurisdictions

Use Cases for a Bulgarian Crypto License

• Crypto exchanges with fiat on/off ramp

• Wallet providers for EU customers

• DeFi projects looking for EU legitimacy

• ICO/ITO/STO launches with legal compliance

• NFT marketplaces with KYC integration

• Web3 startups scaling across Europe

• Tokenization platforms offering asset-backed tokens

• Crypto payment processors integrating fiat and virtual currencies

Contact Us for Bulgarian Crypto License Assistance

We provide full legal, technical, and compliance support for:

• Bulgarian company formation

• VASP registration

• AML policy drafting

• IT infrastructure setup

• Regulatory communication

• Post-licensing compliance and audits

Start your EU-compliant crypto business in Bulgaria today!