Crypto Regulations in Bulgaria (Legal & Compliance Requirements) 

• In light of the continuous growth of the European cryptocurrency market, it is essential to be aware of the Crypto Regulations in Bulgaria when planning to establish an entity on the territory of the EU. 

• The main basis of crypto regulations in Bulgaria is provided by the EU Markets in Crypto-Assets Regulation (MiCA), which establishes the first unified legal regulation of crypto asset service providers in all member states. Businesses engaged in cryptocurrency exchanges, wallet services, token issuance, and storage should make sure to comply with licensing, AML, KYC procedures, and reporting. 

• Thus, obtaining a Crypto license in Bulgaria will allow your business to enter the EU market and enjoy the benefits offered by Bulgaria as a low-cost jurisdiction. As crypto regulations in Bulgaria develop further, it is critical to stay abreast of the latest changes and requirements. 

• Tetra Consultants help clients to incorporate a company, obtain a crypto license, create an AML/KYC framework, comply with regulations, and manage compliance. 

Legal and compliance requirements for crypto regulations in Bulgaria in 2026 

Mandatory CASP license from the Financial Supervision Commission 

• The Bulgarian Financial Supervision Commission (FSC) should grant a CASP (Crypto-Asset Service Provider) license to all crypto-asset service providers. The license must be granted to the crypto-asset business providers prior to July 1, 2026, and its issuance takes no more than 60 working days after the FSC considers the application to be complete. EU passporting is permitted via the issued CASP license for all 27 countries in the European Economic Area (EEA). 

Authorized share capital in amounts of €50,000-€150,000 required 

• Authorized share capital requirements in amounts of at least €50,000 for exchange services, at least €125,000 for custodial services of crypto-assets, and at least €150,000 for trading platforms will apply. The amount will be fully paid in and held in an account with an EEA financial institution licensed to perform financial intermediary activities before the application is submitted. 

Fit-and-proper requirement for directors and key managers 

• It is mandatory that directors and managers have “fit-and-proper” clearance from the FSC, including a clear criminal record, sufficient finance/blockchain expertise, and an overall good reputation. The FSC must conduct checks on managers regarding their knowledge of GDPR and AML/KYC policies applicable in the EU countries. 

AML/KYC compliance requirements according to MAMLA 

• There is a necessity for having comprehensive internal AML/KYC measures according to the MAMLA in Bulgaria. It includes CDD measures, continuous transaction monitoring, compulsory reporting of any suspicious activity in relation to MAMLA to the FID, identification of UBOs, and automated monitoring for any transaction greater than €1,000. 

Cybersecurity and ICT resilience requirements for DORA 

• Applicants are required to have resilient IT infrastructures that comply with cybersecurity requirements within the EU’s DORA regulation. There should be contingency plans, operational resilience measures, and ICT security measures to secure the digital assets of companies. License refusal due to failure to adhere to DORA cybersecurity regulations is a major reason for license refusal by the FSC. 

Local substance and physical presence requirement 

• Companies must register with the FSC at a legal address and have physical operations in Bulgaria. Appropriate management must be present to allow regulatory supervision by the FSC. Directors and shareholders do not have to be citizens or residents of Bulgaria, but companies must have a Bulgarian-registered address and physical operations. 

Organizational governance and structure of internal controls 

• An organization’s structure has to define the decision-making process and its internal controls structure. Complaint handling procedures, conflict of interest procedures, and the separation of duties have to be set clearly. The structure should prove the presence of effective internal controls, which include having compliance officers and reporting lines to the board of directors. 

Measures for protecting client assets and CASP custody 

• The company should provide strong client asset protection services, including the segregation of clients’ funds from the funds of the company itself. CASPs are obliged to have safe custody options, digital assets insurance and regular third-party audits in order to prevent fund commingling and protect the client against various issues that might occur. 

Reporting to FSC and FID 

• The licensed firm is obliged to conduct ongoing reporting to both the FSC and the Financial Intelligence Directorate (FID). This means capital adequacy reports, suspicious activity reports, and other information. All the records should be kept by the firm for a minimum of five years, and all significant changes should be immediately informed about. 

Crypto tax reporting requirements under DAC8 regulation 

• Since 2026, crypto exchanges have to follow EU DAC8 regulations regarding the automatic exchange of data related to crypto transactions. In particular, they have to collect and exchange customers’ transaction data with Bulgarian tax authorities, which further provide it to other EU member states. Compliance with the mentioned rule ensures effective taxation and eliminates tax fraud through crypto asset transactions. 

MiCA white paper disclosure requirements for token issuers 

• Crypto asset issuers have to disclose detailed information about their product and business through a white paper compliant with MiCA guidelines before the issuance of the token for public subscription.  

• It also has to include information about the issuer of the token, projects connected with the token, as well as potential risks associated with such tokens. 

Flat corporate income tax rate of 10% and VAT exemption 

• The country levies an overall flat 10% corporate income tax rate on the entire worldwide profit generated from crypto-related activities. Crypto exchange services are exempt from the VAT as per the European Union directive on VAT rates, thus optimizing operational costs. Individuals will pay personal taxes of 10% on their incomes from crypto assets, 5% of which is dividend tax. 

Conclusion 

• Crypto Regulations in Bulgaria in 2026 are expected to remain a well-structured and clear pathway that allows cryptocurrency organizations to gain access to the European market. Due to the introduction of MiCA and enhanced AML/KYC requirements, crypto exchange operators, custodians, wallet providers, and other players in the field have to guarantee their compliance with all necessary regulations in order to stay within the limits of legality and increase their market value. It is vital to learn more about Crypto Regulations in Bulgaria to reduce regulatory risks and get closer to success. 

• With Tetra Consultants, you will manage to get all types of support during the whole process of licensing and becoming a fully compliant entity. Our professional help will include such services as Bulgaria company incorporation, including offshore company incorporation, crypto license application preparation, AML/CFT policy development, nominee director and shareholder services, creation of a compliance framework, regulatory advice, preparation of documents needed to apply for a license, work with regulators, corporate bank account opening, and many others. 

• Contact us and we will respond within 24 hours.