Serbia is the prime example of a country that actually permits mining and trading in digital currencies through the Law on Digital Assets. The government opted for regulation through defined laws and licensing rules rather than a total ban on digital assets. The enactment of the legislation was introduced in 2023, and an amendment was made in 2025 to allow trading and investment in crypto under state supervision while outright prohibiting this in the payment of any form of daily payments by individuals. This is indicative of Serbia’s next stride towards strengthening its intention of encouraging innovation in a blockchain environment while safeguarding the financial system, that is, Europe.
Historical Context
Up until now, the attitude of Serbia towards cryptocurrencies has been somewhat vague until an appropriate legal regulatory framework develops. Between 2014 and 2020, digital assets operated in a legal gray area without any tax laws applicable to their usage but in 2021, the National Bank of Serbia, whose (NBS) is responsible for public warning on the risks of trading cryptocurrencies especially to retail investors but shy away from prohibiting it.
Groundwork for the legal framework was set in 2023 by the setting up of the Law on Digital Assets, which, among other things, put cryptocurrencies in the category of digital property and started licensing regimes for virtual asset service providers (“VASP”). By 2025, the legal system was made stronger with updates that added anti-money laundering (AML) and know-your-customer (KYC) duties, along with clearer tax guidelines. Discreet and structured advancement on Serbia’s part forebodes taking a realistic view to encourage innovation within the realm of regulatory oversight.
Regulatory Framework
In Serbia, the Law on Digital Assets regulates cryptocurrencies which was adopted in 2023 and amended in 2025. Its main purpose is to create a careful yet orderly legal framework. The law recognizes cryptocurrencies as digital assets rather than legal tender. To trade transparently it provided clear regulations for dealings between enterprises and investors.
Key Highlights:
Legal Status: Its status is as digital property and not a legal tender.
Regulatory Body: This is the Securities Commission (main regulator) and National Bank of Serbia (oversight).
Licensing: Exchanges, wallets, and ICO organizers must be licensed.
AML/CFT Compliance: Transactions exceeding €1,000 are subject to AML/CFT compliance reporting.
Taxation: 15% capital gains tax on profits from digital currencies.
Payment Restrictions: Businesses are prohibited from pricing goods or services directly in cryptocurrency.
Serbia Crypto Policies
With respect to cryptocurrencies, Serbia has taken a very moderated yet cautious approach. All trading, possession and investment into cryptocurrencies are legal under the law on digital assets; however, they are being tightly controlled. Accordingly, both individuals and businesses can only conduct operations in the crypto space through licensed entities, which comply with anti-money laundering (AML) and investor standards.
Serbia prohibited the use of cryptocurrencies as payment for goods and services. The government considers digital assets strictly to be investment products not substitutes for the dinar. The market is under the jurisdiction of the Securities Commission. The central bank supervises the financial stability of the country. In order to promote a safe and responsible use of cryptocurrency under threat of jeopardizing its monetary policy, Serbia legalized trading in regulated terms but also banned using cryptocurrency as a payment method.
Serbia’s Approach to Crypto Innovation
Balanced Regulation: Allows crypto trading but restricts payments to protect the Serbian dinar (RSD).
Tech-Friendly Policies: Supports blockchain startups through Belgrade’s Digital Assets Hub.
No CBDC Plans: Prefers private-sector crypto over a state digital currency.
Mining Regulations: Legal but subject to energy-use disclosures (due to EU alignment).
Serbia aims to attract crypto businesses while mitigating financial risks.
Notable Challenges and Issues
Banking Barriers – Many banks still block crypto-related transactions.
Tax Confusion – Some traders report unclear filing requirements.
Slow Licensing – VASP approvals take 6+ months, discouraging startups.
P2P Market Growth – Informal trading persists due to payment bans.
These issues could hinder Serbia’s ambition to become a Balkan crypto leader.
Key Regulatory Trends and Future Outlook
Updates made to the AML/KYC rules of Serbia in the year 2025 had made improvements to the tax obligations of consumers, thus enforcing the protection of such consumers. The ongoing preparation of various by-laws is yet to determine the well-defined processes for licensing virtual asset service providers, defining initial coin offerings, and approving their white papers.
Smart contracts are now legally recognized, enabling automated legal and financial processes. Serbia is expected to introduce a regulatory sandbox and better banking integration for crypto services.
The market outlook is positive:
Predicted sales for 2025 stand at $22.8 million, going up to $27.6 million in 2026.
Users are anticipated to exceed 698,000 by 2026.
Growth of the crypto market is $2.48B in 2024 and $2.87B in 2025.
Serbia is positioning itself as a regulated, innovation-friendly crypto economy.
Conclusion
The crypto environment of Serbia as it reaches 2025 is definitely on the right path towards balancing playing the legitimizing and protecting role of trading, token issuance, and blockchain innovation within a robust regulatory framework while safeguarding financial stability. With strong compliance regimes, pending legislative developments, and industry buy-in, Serbia is positioning itself as a forward-looking but secure crypto jurisdiction within Southeast Europe. The promise of continual refining by by-law and further engagement by sectoral bodies indicates that the country’s incorporation of digital finance into its national economy will become even deeper.
FAQs
1. Are banks in Serbia allowed to trade cryptocurrencies?
No, Serbian banks may custody digital assets but are prohibited from trading or investing in them, preserving financial system integrity .
2. Can Serbian citizens hold foreign crypto assets on international exchanges?
Yes, Serbian citizens are allowed to hold and trade cryptocurrencies on foreign platforms. However, income generated must be reported for taxation, and compliance with Serbia’s AML laws still applies.
3. How are stablecoins treated under Serbian law?
Stablecoins are treated like other digital assets. If linked to fiat or used as an investment instrument, they fall under the same licensing and tax obligations as cryptocurrencies.
4. Do NFTs (non-fungible tokens) belong to the digital assets law of Serbia?
NFTs are not directly described by the Law for Digital Assets in Serbia. On the other hand, if NFTs are being used for investment or monetary gain, they are then likely to fall under regulatory nets in the areas of either securities or taxes.
5. Can Serbian startups raise capital through token sales?
Token sales are permitted, but there should be prior approval and licensing by the Securities Commission of Serbia. The securities must be accompanied by the white paper, and there is strict disclosure.
6. Are crypto ATMs allowed in Serbia?
According to the Department of Treasury and Department of Finance, crypto ATMs are not prohibited if they are operated by a licensed virtual asset service provider (“VASPs”). Operators should also meet AML and reporting obligations.
7. Can Serbian banks interact with crypto companies?
Direct integration is limited. While some banks may cooperate for regulatory reporting, most avoid direct exposure due to legal uncertainty and central bank caution.
8. How is crypto taxed in Serbia?
In Serbia, the profits from crypto are taxed with a capital gains flat rate of 15%. This provision is common for both individuals and businesses in Serbia.
9. Are Initial Coin Offerings (ICOs) allowed in Serbia?
ICOs are permitted subject to some regulatory requirements: they should be conducted through licensed entities and approved by the Securities Commission. A detailed white paper and compliance with investor protection laws are mandatory.
10. In Serbia, can foreign crypto companies operate?
Foreign companies have the right to and can work in Serbia on cryptocurrencies, provided they register locally and operate in compliance with Serbian law, which also includes the obtaining of necessary licenses as well as putting in place AML, KYC, and tax reporting systems.
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