Crypto license in Bulgaria
Imagine launching your crypto business in the EU and getting to legally serve millions of clients across 27 countries. Not only this, but also enjoying some of the lowest corporate tax rates in Europe. Upon the implementation of the Markets in Crypto-Assets (MiCA) regulation, all this became possible as crypto companies now access “passporting rights” under their CASP license. And yet, the question remains: What jurisdiction to choose for anchoring your enterprise within the new MiCA framework?
Take a closer look at Bulgaria, one of Europe’s most rapidly growing markets as of today. Whether you want to offer basic asset transfers, institutional custody, or operate a trading platform, the Bulgarian regulatory journey supplies advantageous market access, combined with transparent capital requirements, cost-friendly authorization, and consistent compliance obligations. Read further and find out everything about getting your crypto license in Bulgaria.
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Overview of Crypto Regulation in Bulgaria
Within just the last couple of years, the Bulgarian crypto market has shifted from the former basic Anti-Money Laundering (AML) registration system to a remarkably sophisticated and fully harmonized regime. How? Under the recently enacted EU-wide MiCA Act, Bulgaria has officially designated the Financial Supervision Commission (FSC) as the major supervisory authority responsible for licensing and oversight of the CASPs in the region. Meanwhile, the Bulgarian National Bank (BNB) remains the lead authority overseeing the electronic money tokens in the country.
What does this regulatory model mean for your upcoming journey towards getting the Bulgaria crypto license? The Bulgarian financial system now perfectly aligns with the EU MiCA regulation, which implies that all crypto-asset service providers in the jurisdiction must obtain a formal CASP license, instead of the formerly known VASP, in order to register their operations in Bulgaria. Namely, the CASPs are obliged to comply with the established strict consumer protection rules and other core regulations. With the critical CASP transition deadline on July 1, 2026, Bulgaria has shielded its strong position as a highly secure and fully regulated gateway to the broad and dynamic EU market.
Activities Permitted Under the Cryptocurrency Exchange License in Norway
Once your operations are secured with the Bulgarian CASP licensing, your business is officially authorized to provide a specific range of crypto services in accordance with its “class.” Here is the overview of permitted activities for each category:
Class 1:
- Client transactions;
- Facilitating orders for others;
- Providing consultation on crypto assets;
- Overseeing the clients’ crypto orders;
- Crypto-asset portfolio management;
- Positioning of crypto assets;
- Client-focused crypto-asset transfers.
Class 2:
- All services permitted for Class 1;
- Custody and administration of crypto assets on behalf of clients;
- Exchange of crypto assets against funds;
- Exchange of crypto assets against other crypto assets.
Class 3:
- All services permitted for Classes 1 and 2;
- Trading platforms for crypto-asset services.
Advantages of Obtaining the Bulgarian Crypto License
Securing a crypto exchange license in Bulgaria provides EU-based businesses with an unparalleled blend of advantages that stretch beyond mere regulatory legitimacy:
1. Passporting rights under MiCA
At the heart of Bulgaria’s appeal are the full EU passporting rights provided by the MiCA framework. What does it mean? Once licensed in Bulgaria, your company can officially offer its crypto services in all other EU member states without needing to obtain any additional permits. This way, you get to expand your business incredibly quickly and seamlessly.
2. Attractive tax rates
Financially, Bulgaria remains a true powerhouse when it comes to operational efficiency. Namely, it applies a highly advantageous flat 10% corporate income tax rate, which is also one of the lowest in the EU. Besides, a low 5% dividend tax and VAT exemptions on crypto exchange services also significantly add to the country’s financial appeal.
3. Affordable business launch
What about the expenses related to starting your company in Bulgaria? Compared to the high-cost destinations like Germany or France, Bulgaria prides itself on drastically lower business setup fees, as well as affordable office spaces, and access to a highly skilled local pool of talent.
4. Institutional credibility
Finally, supervised by the FSC, your crypto project in Bulgaria gains the institutional credibility needed to establish smooth, reliable relationships with major European banks and payment processors. Thus, your business gets to scale both rapidly and consistently.
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Requirements for the Crypto Licensing in Bulgaria
Minimum Share Capital
The minimum capital requirements in Bulgaria vary depending on the service category your business belongs to:
- Class 1: €50,000;
- Class 2: €125,000;
- Class 3: €150,000.
Local Substance Requirements
- Incorporation of a local legal entity;
- A physical office in Bulgaria is mandatory;
- All directors and beneficial owners must confirm their expertise in the industry;
- At least one director must be a local resident;
- Appointment of a dedicated local AML officer is required.
License Documentation
- Resumes of all directors and beneficiaries;
- Documents regarding relations with subsidiaries;
- Compliance documentation;
- Anti-Money Laundering (AML) and Know Your Customer (KYC) policies;
- Company’s governance structure description;
- Documents related to IT systems and security measures.
Key Internal Policies
- Business continuity plan;
- Conflict of interest prevention policy;
- Internal control policy;
- Pricing policy;
- Client crypto-asset protection;
- AML policy;
- Fund segregation;
- Outsourcing management;
- Insurance policy;
- ICT security;
- Custodial services storage and administration (only for Class 2 and 3 CASPs);
- Client complaints handling.
Step-by-step Guide to the Crypto Licensing Process in Bulgaria
Figuring out the entire CASP authorization pathway in Bulgaria can be truly challenging, especially if you are dealing with it alone. It’s dramatically easier to proceed with your licensing with the thorough assistance of our expert team of consultants. Here is what your journey towards securing the CASP (VASP) license in Bulgaria will look like:
1. Compliance assessment and initial consultation
The first step is to closely examine your selected business model and your project’s compliance conditions. Our consultants will help you create a clear and accurate strategy needed to ensure your company’s further MiCA compliance. The initial consultation is also crucial for identifying the set of documentation you’ll need to prepare for the next application stage.
2. CASP documentation and compliance
Once your business goals and objectives are clearly defined, it’s the right time to start the most significant part of your CASP authorization, which is documentation preparation. At this stage, we will assist you with drafting and reviewing all the mandatory policies and paperwork, including AML protocols, risk management strategy, your detailed business plan, etc. This complex process often takes between 1 and 3 months in total.
3. Application revision and approval
All documents accurate and complete? Now it’s time to submit your crypto license application to the regulator for review. The relevant authority will closely examine your documentation before granting you the licensing. Make sure to stay alert and respond to the regulator’s requests for additional information if any more detailed are required. Once your application is reviewed and approved, your Bulgarian license, along with the supporting documentation, will be issued.
What comes in the CASP license package?
Besides the license itself, here is what you will receive in addition to your full CASP authorization in Bulgaria:
- Full compliance with MiCA and EU regulations;
- Comprehensive legal and compliance documentation;
- Assistance with AML and KYC compliance;
- Authorization as a Crypto-Asset Service Provider (CASP);
- Regulatory guidance throughout the entire authorization process.
How Much Does the Cryptocurrency License in Bulgaria Cost?
While the breakdown of the license fees might seem straightforward at the first glance, it’s highly recommended to cooperate with a team of experienced consultants who will introduce you to all the financial nuances related to your CASP licensing in Bulgaria. That’s because the prices vary according to a number of factors, including the scope of services you plan to offer, your business setup conditions, your project’s local presence and compliance obligations, etc.
First-Year and Company Setup
- Initial consultation and compliance assessment;
- CASP application;
- Compliance documentation;
- Company registration in Norway;
- Representation and follow-up work;
- Administrative fees;
- Potential security deposit;
- Local AML officer onboarding;
- Bank account opening assistance;
- EMI account setup;
- Office space setup;
- Liquidity provider account opening.
Recurring Costs
Besides the first-year expenses, the crypto licensing in Bulgaria includes the recurring fees:
- Ongoing local substance costs, such as office rent and staff salaries;
- Annual license renewal.
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Frequently Asked Questions
Who needs a crypto license in Bulgaria?
Any individual or legal entity providing crypto services to residents of Bulgaria or from within Bulgarian territory must obtain the CASP license. With the recent implementation of the EU-wide MiCA regulation, this policy applies to both established companies and new startups. If you’re currently operating as a VASP, you must transition to the CASP framework by July 1, 2026. Once this critical deadline passes, all unauthorized entities are obliged to cease any crypto-asset services in the EU.
What activities require regulation under Bulgarian crypto laws?
The crypto activities regulated by MiCA and Bulgarian national authorities are divided into three categories. Depending on the crypto “class” your business belong to, you can provide the following services:
Class 1:
- Client transactions;
- Facilitating orders for others;
- Providing consultation on crypto assets;
- Overseeing the clients’ crypto orders;
- Crypto-asset portfolio management;
- Positioning of crypto assets;
- Client-focused crypto-asset transfers.
Class 2:
- All services permitted for Class 1;
- Custody and administration of crypto assets on behalf of clients;
- Exchange of crypto assets against funds;
- Exchange of crypto assets against other crypto assets.
Class 3:
- All services permitted for Classes 1 and 2;
- Trading platforms for crypto-asset services.
How long does it take to obtain a crypto license in Bulgaria?
The typical timeframe for obtaining your crypto license is under 5 months. It includes the initial compliance assessment and consultation, company registration in Bulgaria, document preparation, application review, and license issuance. However, the delays may occur during various stages of the procedure if you are proceeding with your licensing alone. That’s why it’s highly advised to cooperate with our expert consultants, who will help you with the entire authorization. From the effective strategy development and paperwork preparation to proactive communication with the local authorities and license maintenance, we’re here to make sure your CASP licensing journey is smooth and efficient.
What are the main requirements for getting a crypto license?
The core requirements for obtaining the MiCA license in Bulgaria include the following:
- Official company registration in Bulgaria;
- Minimum share capital:
- Class 1: €50,000;
- Class 2: €125,000;
- Class 3: €150,000.
- Local presence requirements:
- A physical office in Bulgaria;
- All directors and beneficial owners must confirm their expertise in the industry;
- At least one director must be a local resident;
- Appointment of a dedicated local AML officer is required.
- Complete and accurate documentation:
- Resumes of all directors and beneficiaries;
- Documents regarding relations with subsidiaries;
- Compliance documentation;
- Anti-Money Laundering (AML) and Know Your Customer (KYC) policies;
- Company’s governance structure description;
- Documents related to IT systems and security measures.
- Mandatory internal policies:
- Business continuity plan;
- Conflict of interest prevention policy;
- Internal control policy;
- Pricing policy;
- Client crypto-asset protection;
- AML policy;
- Fund segregation;
- Outsourcing management;
- Insurance policy;
- ICT security;
- Custodial services, storage, and administration (only for Class 2 and 3 CASPs);
- Client complaints handling.
How much does it cost to register a crypto company in Bulgaria?
The total price list associated with crypto licensing in Bulgaria consists of the first-year expenses and the recurring fees. The exact cost of your authorization mainly depends on the service package you choose with our consultants. However, the standard list of costs you should be aware of includes the following:
- Company setup and first-year fees:
- Initial consultation and compliance assessment;
- CASP application;
- Compliance documentation;
- Company registration in Norway;
- Representation and follow-up work;
- Administrative fees;
- Potential security deposit;
- Local AML officer onboarding;
- Bank account opening assistance;
- EMI account setup;
- Office space setup;
- Liquidity provider account opening.
- Recurring costs, starting from the second year:
- Ongoing local substance costs, such as office rent and staff salaries;
- Annual license renewal.
Feel free to contact us today for a free consultation and personalized advice on your license budget.
Is Bulgaria a crypto-friendly jurisdiction?
Yes, Bulgaria remains a highly attractive jurisdiction for international investors and operators due to its competitive corporate tax rates, the EU-wide passporting rights, and innovative approach to the crypto sector. The crypto businesses also choose to anchor their operations in this country for its consistent, clear MiCA regulations that allow companies to provide their service across all 27 EU member states and, thus, reach a vast consumer base under a single license.
Can foreign companies apply for a crypto license in Bulgaria?
Yes, foreign companies can own and operate a crypto company in Bulgaria. Yet, the foreign entities must first officially register a local Bulgarian subsidiary and establish a physical presence with the proper local substance to qualify for the further CASP license application. This way, the 100% ownership is granted to the company’s subsidiary registered and licensed in Bulgaria.
What documents are required for registration?
The core documentation required for securing your license in Bulgaria includes the following:
- Resumes of all directors and beneficiaries;
- Documents regarding relations with subsidiaries;
- Compliance documentation;
- Anti-Money Laundering (AML) and Know Your Customer (KYC) policies;
- Company’s governance structure description;
- Documents related to IT systems and security measures.
What are the ongoing compliance obligations after obtaining a license?
Once your business is secured with a Bulgarian CASP license, it must continuously maintain its prudential capital requirements and remain fully compliant with the robust MiCA standards. The major ongoing requirements include:
- Mandatory AML and KYC protocols;
- Compliance with the Travel Rule for crypto transfers;
- Regular financial reports to the FSC;
- Passing regular technical audits;
- Maintain proper local substance.
Is AML/KYC compliance mandatory for crypto companies in Bulgaria?
Yes, the crypto companies seeking to get authorization in Bulgaria must adhere to the current AML and KYC standards established by MiCA across all EU member states.
