Bulgaria Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): State Agency for National Security, Financial Intelligence Directorate, Financial Supervision Commission, National Revenue Agency, European Central Bank
Primary Legislation: Compliance with the Regulation on Digital Asset Service Providers (DASP), which, European Commission on Digital Asset Regulation (2023), Bulgarian crypto regulation is now defined by the EU MiCA framework, which inclu, The Bulgarian National Bank (BNB) oversees the regulation of cryptocurrencies, f, BG MiCA Act, Bulgaria enacted the Markets in Crypto-Assets Act, effective 8 July 2025, which
Travel Rule: Adopted — Threshold: €1,000,
Tax Reporting: National Revenue Agency (NAP/NRA): The official body for tax administration in Bulgaria.. Website: https://nra.bg/ (Bulgarian). The NRA has issued various clarifications and methodologies on the tax treatment of virtual currencies, but these have been superseded by Bulgaria's full adoption of the EU's MiCAR framework, which now governs crypto-asset regulation and tax treatment.. For U.S. tax purposes, a taxable crypto event includes selling or exchanging cryptocurrency for fiat or other crypto when a gain or loss is realized, and it also includes other taxable receipts such as mining, staking, airdrops, and payment for services at fair market value when received.. Tax Rate: 10% flat rate on the positive difference (gain) between the sale price and the acquisition price. This falls under income from the sale of "financial assets" or "other property" under the Personal Income Tax Act (ZDDLF - Закон за данъците върху доходите на физическите лица).

Key Facts

aml While MAMLA historically served as the primary domestic AML/CFT law for VASPs in Bulgaria, the current regulatory framework is transitioning to the EU's MiCA regime. The 'Bulgarian MiCA Act' is being introduced as the new governing law, and VASPs/CASPs now face dual compliance obligations under both MiCA and MAMLA-derived AML/CFT rules (such as CDD), though MAMLA no longer solely dictates the requirements and penalties for VASPs. This act defines "virtual assets" and "virtual asset service providers" and brings them within the scope of obliged entities. It outlines the specific requirements for customer due diligence, reporting, and record-keeping. Exchange between virtual assets and fiat currencies. Exchange between one or more forms of virtual assets. Transfer of virtual assets. Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets. Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset are subject to AML/CFT regulation and are treated as financial activities for regulated virtual asset and stablecoin issuers. In Bulgaria, the State Agency for National Security (SANS) is the primary AML/CFT regulatory body, overseeing VASPs centrally; the Financial Intelligence Directorate under DANS no longer serves as the sole key entity.
enforcement Violation Type: Non-compliance with the Measures Against Money Laundering Act (MAMLA), specifically regarding VASP registration, customer due diligence (CDD), ongoing monitoring, suspicious transaction reporting (STR), record-keeping, internal control rules, etc. Outcome: Administrative fines, cessation of non-compliant activities, and potential criminal investigations in severe cases of money laundering. Outcome: Administrative fines, cessation of non-compliant activities, and potential criminal investigations in severe cases of money laundering. Legal Basis: EU sanctions are typically imposed through Council Decisions and implemented via Council Regulations. These Regulations are directly applicable in all EU Member States without the need for national transposition.
general Measures Against Money Laundering Act (ZMSIP): This is the principal national law governing AML/CFT obligations in Bulgaria. It designates the Financial Intelligence Directorate at the State Agency for National Security (FID‑SANS) as the national financial intelligence unit responsible for receiving and processing suspicious transaction reports and coordinating AML/CFT measures. Obligations: The ZMSIP mandates obliged entities (including VASPs) to: Apply CDD measures, including identification and verification of customers, and identify and verify beneficial owners in line with FinCEN’s CDD Rule and any applicable exceptive relief (i.e., not necessarily for every account opening or in all cases where relief applies). Monitor transactions for suspicious activity. In Bulgaria, suspicious transactions must be reported to the Financial Intelligence Directorate within the State Agency for National Security (SANS), in accordance with local AML/CTF law, not to U.S. authorities such as FinCEN. Implement internal policies, controls, and training related to AML/CFT and sanctions. Freeze assets of designated persons/entities and report these freezes. Virtual asset service providers in Bulgaria have historically been required to register with the National Revenue Agency (NRA) and are subject to AML/CFT oversight involving the State Agency for National Security (DANS), but this NRA-based VASP registration regime is now being replaced and supplemented by a MiCA‑aligned framework in which the Financial Supervision Commission (FSC) maintains the main register and supervisory role for MiCA crypto‑asset service providers; therefore, it is no longer accurate to describe NRA/DANS as the primary, current registration and supervisory authorities for all VASPs.
licensing Cryptocurrency exchanges and custodial services must obtain a license from the NRA. The application process includes submitting detailed business plans, AML/KYC policies, and compliance with Bulgarian tax laws on digital asset transactions. Under MiCA, entities issuing or trading crypto-assets must be registered with the FSA. Compliance includes risk management frameworks, consumer protection measures, and transparent reporting of market activities. Bulgarian regulations require robust AML/KYC procedures for all cryptocurrency service providers, aligning with EU standards set forth in AMLD5. Regular audits and continuous monitoring are necessary to ensure ongoing compliance. Non-compliance can result in fines up to €10 million or 2% of global annual turnover, as stipulated by the FSA and NRA. Recent enforcement actions include penalties for a local exchange lacking proper AML controls, highlighting the importance of preemptive licensing compliance.
sanctions Legal Basis: EU sanctions are typically imposed through Council Decisions and implemented via Council Regulations. These Regulations are directly applicable in all EU Member States without the need for national transposition. EU sanctions apply in Bulgaria, but Bulgaria has imposed additional national restrictions, such as a temporary ban on fuel exports to other EU members following Lukoil sanctions, modifying the uniform application of EU sanctions within its jurisdiction. All natural and legal persons, entities, or bodies within the territory of the EU. Any legal person, entity, or body incorporated or constituted under the law of a Member State. Any natural or legal person, entity, or body in respect of any business done in whole or in part within the EU. Definition of "Funds" and "Economic Resources": EU sanctions regulations typically prohibit making "funds" and "economic resources" available to designated persons and entities. Post-AMLD5 and the Russia sanctions, cryptocurrencies are widely understood and treated as "funds" or "economic resources" for sanctions compliance purposes. Legal Reference: Council Regulation (EU) No 833/2014 (concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine), Article 5b, explicitly mentions the prohibition of providing crypto-asset wallet, account, or custody services to Russian persons/entities. Similar provisions can be found in other sanctions regimes. Council Regulation (EU) No 833/2014 (See Article 5b for crypto-related restrictions concerning Russia)
securities The Bulgarian legal framework for securities markets now explicitly addresses cryptocurrencies and digital assets through the adoption of the Markets in Crypto-Assets Act (MICAL), which implements the EU's MiCA Regulation and establishes a comprehensive regulatory regime, with existing domestic VASPs required to transition by July 1, 2026. The Bulgarian Stock Exchange and other market infrastructures primarily focus on traditional securities, but Bulgarian regulators have adopted the EU MiCA Regulation ((EU) 2023/1114) into national law, which directly regulates digital assets and crypto-asset service providers, thereby addressing the regulatory gap. Bulgaria has improved its legal framework to prevent money laundering and terrorist financing, and the application of these measures to cryptocurrencies is now clearly defined under the EU Markets in Crypto-Assets Regulation (MiCA) and Bulgaria's national Markets in Crypto-Assets Act, with the Financial Supervision Commission licensing crypto platforms. Bulgaria's securities markets are governed by a legal framework that specifically addresses cryptocurrencies, including through the EU's Markets in Crypto-Assets (MiCA) Regulation, which has been integrated into national law and is overseen by the Financial Supervision Commission. The Bulgarian Stock Exchange operates under standard market regulations; however, Bulgaria has now adopted explicit national digital asset regulations via the Markets in Crypto-Assets Act, which designates competent authorities and includes licensing provisions for crypto service providers. No specific licenses are currently required for cryptocurrency exchanges or initial coin offerings (ICOs) under Bulgarian law, as the regulatory scope does not extend to these digital assets. Professional services licensing in Bulgaria does not yet include provisions for blockchain-based financial services source name. Existing anti-money laundering (AML) and know-your-customer (KYC) regulations apply broadly to traditional financial institutions but are not explicitly tailored to cryptocurrency exchanges.
status Progressive rates ranging from 10% up to 10% on the highest income brackets. Specific rates apply to various types of income (e.g., salaries, pensions, capital gains). Tax is levied on worldwide income for tax residents. A resident is defined by the “substantial presence” test or habitual residence within Bulgaria. Includes wages, self‑employment earnings, rental income, and foreign sourced income. Deductions for business expenses, social security contributions, and certain allowances are permitted. Standard deductions and personal allowances reduce taxable income. Special incentives exist for education, child care, and renewable energy investments.
tax National Revenue Agency (NAP/NRA): The official body for tax administration in Bulgaria. Website: https://nra.bg/ (Bulgarian) The NRA has issued various clarifications and methodologies on the tax treatment of virtual currencies, but these have been superseded by Bulgaria's full adoption of the EU's MiCAR framework, which now governs crypto-asset regulation and tax treatment. For U.S. tax purposes, a taxable crypto event includes selling or exchanging cryptocurrency for fiat or other crypto when a gain or loss is realized, and it also includes other taxable receipts such as mining, staking, airdrops, and payment for services at fair market value when received. Tax Rate: 10% flat rate on the positive difference (gain) between the sale price and the acquisition price. This falls under income from the sale of "financial assets" or "other property" under the Personal Income Tax Act (ZDDLF - Закон за данъците върху доходите на физическите лица). Taxable Gain = Sale Price - Acquisition Price The acquisition price includes all costs directly related to acquiring the crypto (e.g., purchase price, trading fees). Losses: Losses from the sale of cryptocurrencies can generally offset gains from the sale of other cryptocurrencies within the same tax year. However, losses from cryptocurrency sales typically cannot be offset against other types of income.
travel rule Adopted: Yes, the principles of the FATF Travel Rule for crypto assets are adopted in Bulgaria through the Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets, also known as the amended Transfer of Funds Regulation (TFR). This regulation is directly applicable in all EU member states, including Bulgaria, without the need for national transposition. Prior to the TFR, Bulgaria already had a framework for Virtual Asset Service Providers (VASPs) under its national AML legislation. The EU Transfer of Funds Regulation as amended by Regulation (EU) 2023/1113 extends the Travel Rule to crypto‑asset transfers, and these requirements have applied in the EU (including Bulgaria) since 30 December 2024. Bulgaria's national anti-money laundering legislation, the Measures Against Money Laundering Act (MAMLA), already subjects VASPs to AML/CFT obligations, including customer due diligence and suspicious transaction reporting. For crypto-asset transfers between EU Crypto-Asset Service Providers (CASPs) under Regulation (EU) 2023/1113, there is no de minimis threshold: all such transfers, regardless of amount, must include complete originator and beneficiary information. However, the EU framework now distinguishes these CASP‑to‑CASP transfers from transactions involving self‑hosted wallets, for which additional rules apply above €1,000, so any description of the regime should situate the zero‑threshold rule within this broader, MiCA‑aligned CASP/Transfer of Funds Regulation context rather than as a generic VASP rule. As of July 1, Bulgaria applies MiCA’s strict rules to all crypto transfers, including those involving self-hosted wallets, ending any prior unregulated status. CASPs must collect originator and beneficiary information for all transfers. For transfers exceeding €1,000, the CASP must verify that the unhosted wallet is owned or controlled by the originator or beneficiary.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-06. View full profile