Cryptocurrency Regulation, Ownership, and Trading in Serbia

After the adoption of the Law on Digital Assets, we wrote that Serbia is a crypto-friendly destination.

In this article, we will explore how cryptocurrency regulation, ownership, and trading look in Serbia today.

Cryptocurrency Mining in Serbia

Serbia remains one of the few countries in the world that has explicitly allowed mining and trading of digital currencies through the adoption of the Law on Digital Assets.

However, cryptocurrencies are still not considered legal tender, and trading actually takes place through exchange mechanisms.

Nevertheless, this brings a certain level of legal security and encourages:

Short-term investors to trade cryptocurrencies based on price fluctuations;
Long-term investors to invest in cryptocurrencies as a form of savings diversification;
Miners to legally sell their mined cryptocurrencies
Taxation of Cryptocurrencies in Serbia

With the legalisation of cryptocurrency ownership, Serbia has also introduced taxation on such assets.

If you own cryptocurrency that you purchased or mined and then sell it, you are subject to capital gains tax.

Specifically, the capital gains tax rate is 15%, applied to the difference between the selling price and the acquisition cost.

The Personal Income Tax Law states:

For digital asset transfers, the acquisition price is considered the price the taxpayer can document as actually paid; If the digital asset was acquired through mining, the acquisition cost is calculated based on the expenses incurred in obtaining the asset (such as electricity costs), which must be documented.

Thus, you must document how much you actually paid for the cryptocurrency or, if mined, the acquisition cost is essentially the mining expenses (electricity consumption).

Salaries in Cryptocurrencies

For some IT companies and their employees, receiving salaries in cryptocurrency is logical and legitimate.

They track the value of cryptocurrencies and are willing to pay taxes and contributions accordingly.

However, Serbian state authorities and banks require salaries to be paid in dinars, with a specific designated payment code.

Therefore, cryptocurrencies are mainly used as employee bonuses rather than direct salaries.

Trading Cryptocurrencies in Serbia

Both individuals and companies in Serbia can legally trade cryptocurrencies.

Buying Cryptocurrency – Step-by-Step Process

Choosing a Crypto Exchange

The most popular exchanges include Binance, Coinbase Exchange, Bittrex, Kraken, and others.

These platforms allow the purchase of various cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and many more.

However, some crypto exchanges do not accept users from Serbia, which may limit your choices;

Registering and Verifying an Account

After choosing an exchange, you need to create an account.

The KYC (Know Your Customer) process requires submitting personal identification documents (passport, ID card, proof of address) for security and compliance reasons.

Depositing Funds

You need to deposit funds before purchasing cryptocurrency.

This can be done via:

Bank transfer (SEPA, SWIFT);
Credit/debit cards (Visa, MasterCard);
PayPal or other services (depending on the exchange);
No cryptocurrency exchange allows direct purchases with Serbian dinars (RSD).

Buying Cryptocurrencies

Once funds are deposited, you can place an order to buy cryptocurrency.

You specify the amount in FIAT currency (e.g., EUR, USD) and select the cryptocurrency you wish to purchase.

Transferring Cryptocurrencies to a Secure Wallet

It is recommended to move your cryptocurrencies to a secure wallet after purchasing.

Exchanges can be hacked, so storing cryptocurrencies in a private wallet like MetaMask or Ledger is safer.

Selling Cryptocurrencies – Step-by-Step Process

Transferring Cryptocurrencies to an Exchange

If your cryptocurrencies are stored in a private wallet, transfer them to an exchange before selling.

Placing a Sell Order

Once the funds are on the exchange, you can place a sell order:

Market order – sells at the current market price

Limit order – sells at a specified price

Receiving FIAT Money

After selling, the proceeds are deposited in your exchange account.

You can withdraw funds via bank transfer, PayPal, etc.

Direct withdrawal in Serbian dinars is generally not possible, but some exchanges offer P2P (peer-to-peer) sales, where you can sell cryptocurrency to someone willing to pay in dinars (often for a fee).

Capital Gains Tax

As cryptocurrency sales in Serbia are subject to capital gains tax, you must report your earnings and pay the required tax under the law.

Costs and Fees

When buying or selling cryptocurrencies, be aware of:

Transaction fees – exchanges charge a fee for each transaction, usually as a percentage of the trade value;
Withdrawal fees – withdrawing FIAT money from an exchange to a bank account may involve additional charges.

Security When Buying and Selling Cryptocurrencies

Both individuals and businesses should take security seriously.

Some key recommendations include:

Enable two-factor authentication (2FA) for all platforms;
Never share your private wallet keys;
Use reputable exchanges with strong security measures and insurance.

Crypto Exchanges in Serbia

Serbia has officially registered cryptocurrency exchanges, which must comply with regulations for anti-money laundering (AML) and consumer protection.

Crypto exchanges and platforms offering exchange services must follow financial service laws even though cryptocurrencies are not recognized as legal tender.

Instead, cryptocurrencies are considered assets, and their trading is treated as an exchange transaction.

Additionally, Serbian crypto exchanges must implement AML policies, meaning users must complete identity verification before buying or selling cryptocurrencies.

The Role of the National Bank of Serbia (NBS) in the Crypto Market

The National Bank of Serbia (NBS) does not directly regulate crypto exchanges since cryptocurrencies are not recognized as legal tender in Serbia.

However, NBS does play a role in monitoring risks and providing guidelines regarding cryptocurrency use. While NBS has issued warnings about the risks associated with investing in cryptocurrencies, it has not banned their trade.

Conclusion

Owning and trading cryptocurrencies may seem complex at first, but with the right knowledge and preparation, the process becomes much simpler and safer.

If you are considering investing in cryptocurrencies, we recommend consulting with a lawyer specializing in finance and digital assets.

A professional can help you: