Serbia just loosened its grip around cryptocurrencies, as it legally approved the issuance and trading of digital assets. The draft of the bill was introduced all the way back in October and was passed by the local officials in November of last year, coming into effect on 29th December.
The Securities Commission and the National Bank of Serbia (NBS) term the new legislation the Digital Asset Law. Crypto service providers and exchanges alike need to acquire proper authorization and licensing from the NBS and the Securities Commission within the next 6 months before opening their services to local traders and institutions.
Serbia-based crypto companies have the right to issue tokens with a whitepaper (explaining the technology and purpose) with or without approval from the local commission. Nevertheless, those without the Commission’s and Bank’s authority will have their local distribution limited and cannot advertise to locals.
The new law will also allow secondary market trading in digital currencies, as well as OTC trading and the integration of smart contracts.
Prior to the new legislation, Serbia was a difficult market for crypto to thrive in. In 2014, the central bank criminalized Bitcoin, declaring it an illicit tender, and as a consequence the local crypto industry growth impeded. However, the unexpected tolerance for the crypto industry will help boost the booming Serbian tech industry, which amounts to 6% of the local GDP.