In the country that we will consider today, crypto is regulated by EU law, so a license is needed mainly to meet AML/CFT demands. Although national powers have recognized the significance of fresh technologies and even shed light on digital money taxation, they currently favor a liberal approach to digital currency regulation, which means that a full regulatory substructure for e-currency will not be implemented anytime soon.

To procure a crypto exchange license in Slovakia, you should have a local business-company that provides e-money services. The minimum amount of the authorized capital of the corporation is 5,000 euros . In addition, set a director with EU or Slovak nationality and make and give in a business plan.

Currently, there is no in-depth legal regulation of crypto preferences in the Slovak Republic. Certain efforts for the legal regulation of crypto estates can be drawn from the norms of public law.

The first regulation of crypto preferences in the Slovak Republic began with an amendment to the Income Tax Law. The concept of the so-called selling of virtual money and its inclusion in the taxpayer’s obligation to tax revenue obtained from the interchange of e-currency for property was introduced.

Despite the lack of regulation, Slovakia’s lawfullment boasts a number of profits that are attractive to crypto businesses looking to obtain a permission in a European lawfullment. If you want to take advantage of low business-company formation values, a competitive and business friendly tax government, nominee director and shareholder services, no limitations on non-citizens property and workers, and the highest level of productivity in Central and Eastern Europe, read on to find out how to become a permitted crypto-business in the country.

Types of Slovakia crypto regulation license

There are two options for a digital currency permission in the country. You can get a permit to provide e-wallet services, as well as a license to interchange e-currencies. In both cases, it is needed to enroll a local crypto company. The minimum amount of authorized capital is 5,000 euros. There is no need to pay this amount in full at the time of enrollment. The local crypto company must have a director who is a resident of the EU or Slovakia. This juridical entity is also needed to have a realistic business plan.

At a minimum, to enroll a local business-company, it is must to collect and form the following package of legal papers:

• Passport of the beneficiaries and directors of the corporation..

• Proof of dwelling(such as proof of registration from the local government or utility bill).

• Three options for the desired name for the company.

• Power of attorney.

• Verification of no criminal accounts.

• Attestation of secondary education. If the document was issued abroad, then the owner must go through the nostrification procedure in advance (may take 8-12 weeks).

An EU/EEA citizen or a foreign entrepreneur based in the EU/EEA who does not meet the professional competence criteria needed to engage in regulated trade such as crypto currency development activities, Trade Licensing Act and additional relevant laws of Slovakia may apply to the administration internal affairs of the Slovak Republic to compare their knowledge and skills, confirmed by diplomas; certificates or other qualification certificates; Extradited in another member country in agreement with the relevant Slovak regulations. The non-Sovac qualification recognition process can take up to three months.

Steps to cryptocurrency exchange license in Slovakia achieving

1. Enroll a business-company in country

2. Get a local superscription and a local manager

3. Fill an application to the Trade Licensing Office

4. Receive a trade agreement

5. Once successful: set-up crypto AML producers and internal KYC processes

6. Start operating your digital money company

Needed papers:

• Statement

• Charter and other corporate legal papers

• Acknowledgment of the availability of premises for the enrolled office in Slovakia 

• It can be both a rent contract with a clear indication of the merchant’s goal, and a composed contract of the property holder, subscribed by a notary public.

• Acknowledgment of the constant place of residence of the establishers and managers of the corporation

• Acknowledgment of appropriate professional competence that allows founders and senior management to comply activities with e-currency

• Certificates issued by the General Prosecutor’s Office confirming that the founders and senior management have not been convicted of economic crimes or other crimes related to the planned economic activity.

Crypto business-company in Slovakia

In order to make the cryptocurrency business more transparent and reliable, Slovakia follows the rules for combating money laundering (hereinafter referred to as “AML”) and terrorist financing (hereinafter referred to as “CFT”) set by the EU.

To execute with AML/CFT regulations, crypto companies must adhere to the following principles:

• Determining the nature and complexity of cryptographic operations and types of clients in the context of the relevant rules.

• Growth and realization of policies and operations to manage the risks associated with money laundering and terrorist financing.

• Ensure that staff are adequately trained and able to navigate money laundering, terrorist financing and data protection laws related to financial crime mitigation, as well as identifying high-risk clients and situations.

• Design and implement CDD (customer due diligence) and KYC policies to ensure customer identification throughout all business relationships.

• Implement domestic operations to identify political actors.

• Constant monitoring of operations in agreement with the principles of risk assessment.

• Report suspicious transactions and customers to the competent authorities in agreement with the AML Law.

In Slovakia, AML/CFT compliance is enforced by the Slovak Financial Intelligence Unit, which develops and implements controls on cryptocurrency transactions. This body monitors crypto companies and is authorized to request relevant reports containing customer data, which removes the anonymity factor in crypto activities, but strengthens the credibility of Slovak crypto companies.