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Date: February 25th 2021
Published on: Regulation
AML, Crypto AML, Crypto Compliance, Cryptocurrency, Cryptoregulation, DASP, digital assets, Risk assessment, RiskAML, scorechain,
Scope of the law
The new law1 in Serbia defines two types of digital assets:
VCs fall under the supervision of the National Bank of Serbia (NBS) while digital tokens are supervised by the country’s Securities Commission (SEC). If a digital asset should have the nature of VC and digital tokens, both the NBS and SEC will be competent authorities3. The law also permits digital asset issuance, mining activities and over-the-counter (OTC) trading.
However, digital transactions accepted “as a form of loyalty or reward without possibilities of its transfer or sale”, mining and electronic money are excluded from the scope of the law.
Besides, under the law, financial institutions supervised by NBS are restricted from “investing in digital assets, providing services related to digital assets, as well as from taking digital assets as security” but can provide cryptographic key safekeeping services.
Issuance of digital assets
The law states that digital assets can be issued with or without white papers. It is also possible to publish an unapproved white paper if it is clearly stated in the document.
Advertising the issuance of digital assets is possible with a white-paper approved by the competent authorities. However, advertising the issuance of a digital asset without an approved white paper is possible only in one of the following cases:
Digital asset service providers (DASPs) must obtain a license to operate. To apply for a license, they have to provide:
Besides, the minimum capital required to apply for a license is:
The license will be granted by one of the competent authorities either the NBS or the SEC.
DASPs have to comply with the relevant AML/CFT regulations. All data concerning digital asset transactions and required by AML/CFT rules must be kept for at least 10 years and be made available to competent authorities when necessary.
The law which came into force on Dec 29, 2020 will be applied 6 months later. Concerned DASPs have until June 29, 2021 to comply with the relevant requirements.
Serbia is another example of worldwide governments regulating virtual assets. It is thus fundamental for virtual asset service providers to comply with the new regulations. Scorechain can help you in your compliance journey. Contact us for a free demo: firstname.lastname@example.org
Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a European leader in crypto compliance since 2015, the Luxembourgish company serves worldwide customers in 33 different countries with more than 150 licenses established, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets customers onboarding, audit and law firms and some LEAs.
Scorechain solution supports Bitcoin analytics with Lightning Network, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger and Tezos. The software is able to de-anonymize the Blockchain data and connect with sanction lists in order to provide a risk scoring on digital assets transactions, addresses and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.