Crypto Regulations in Montenegro
There is no clear regulation of the cryptocurrency industry in Montenegro. However, the standards enacted in the nation and Europe should be followed by exchanges and exchangers even when a license for cryptocurrencies has not been awarded.
Source: Company Formation Montenegro
Local regulatory legislation is adapted to EU standards and requirements. Cryptocurrency is not regulated as an official means of payment, but its possession and/or use is not clearly prohibited. The established practice of crypto assets turnover is based on the fact that transactions with cryptocurrencies are carried out at your own risk. According to the Central Bank, cryptocurrencies do not affect the local banking system, and also are not a threat to it.
Source: PRI Finance
There is no relevant legislation regarding cryptocurrency in Montenegro. However, there have been several proposals to regulate particular aspects of cryptocurrency, in particular those relating to money transmission and anti-money laundering. For more details please see “Money transmission laws and anti-money laundering requirements.
Source: Schoenherr
In November 2014 the Central Bank of Montenegro reportedly issued a warning saying that individuals may own bitcoins at their own risk, although virtual currencies are not legal tender in Montenegro.
Source: Freeman Law
Central Bank of Montenegro restated that as virtual currencies are not a legal means of payment in Montenegro, any transaction facilitated through virtual currencies is performed at one’s own risk. The Central Bank also confirmed that they do not have information on how many individuals and companies are issuing and managing these currencies, including conversion services to conventional currency and vice versa.
Source: Schoenherr
The nature of the assets must be thoroughly analyzed to receive a crypto license in Montenegro. Additionally, a precise set of regulatory requirements that the company’s potential license recipient adheres to must be identified. There are no specific legislative provisions that would govern the requirement of a separate license in this jurisdiction to deal with such assets. An analysis by our experts regarding the type and traits of the cryptocurrency assets used in the transactions that will be carried out is provided.
Source: Company Formation Montenegro
Cryptocurrency is not subject to special tax law procedures in Montenegro. Accordingly, Montenegrin tax rules do not include any special tax rules for income, profits, or gains arising from transactions involving cryptocurrencies. In fact, all transactions performed in Montenegro using cryptocurrencies have had their values expressed in euros as well. Namely, there have been several transactions concerning the purchase and sale of immovable property in Montenegro using cryptocurrencies as a means of payment (in particular, bitcoins). However, all such contracts contained a price in euros in parallel. The Tax Authority of Montenegro applied taxes only on the corresponding value of the property expressed in euros, and not in bitcoins.
Source: Schoenherr
The local tax authorities did not provide any explanation regarding the special taxation regime for crypto assets. The legislation does also not provide special rules regarding the taxation of income, profits, and capital gains from operations with crypto assets. Transactions involving this type of asset require their amount to be indicated in one of the fiat currencies, for example, in euros.
Source: PRI Finance
Regulation review of cryptocurrency exchange license in Montenegro The main regulators whose competence extends to the field of blockchain are the Central Bank, the Securities Market Commission, and the Ministry of Finance of Montenegro. None of these bodies issued policies or industry reviews, nor did they impose any restrictions on investors. Regulators’ actions, in particular, the Ministry of Finance, are aimed at removing barriers to the activities of business entities in the blockchain field, and at the same time, the sphere is under their scrupulous supervision.
Source: PRI Finance
The Montenegrin government has been supportive of cryptocurrencies and has even created a regulatory framework for them. This has made Montenegro an attractive destination for cryptocurrency businesses. The government has also been working on a national digital currency, which could be launched soon. With all these developments, Montenegro is becoming a hub for Bitcoin trading and investment.
Source: PC Tech Mag
The Montenegrin government has begun fulfilling its pledge to become a hub for blockchain innovation by reportedly making Ethereum creator Vitalik Buterin its newest citizen. Montenegrin news outlet RTCB reported that Prime Minister Zdravko Krivokapić recommended Buterin receive the privilege to help the southeastern European nation promote its efforts to become a blockchain innovation hub.
Source: Cointelegraph
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Crypto is a new thing for all countries, and not all are approaching it in a pro-business way; others are just ignoring it, while others just don’t know what to do with it. The Balkans usually had a tough stance against crypto, but Montenegro was one of the first countries in the region to take a step forward and change that approach. Undoubtedly, this is a new thing for the country. Nevertheless, the Montenegrin Security Exchange Commission supported the crypto trend and created a Regulatory Sandbox.
Source: Mundo Expert
