The Bulgarian government moves forward with first-of-its-kind draft law on crypto assets

Bulgaria is taking a step towards regulating the rapidly growing crypto market with the creation of the first-ever Crypto Asset Markets Act. At its meeting today, the government approved the draft law, which aims to create a clear and stable legal framework for the activities of crypto asset service providers and token issuers.

The bill for the Crypto Assets Act was first presented in August. It comes in response to the European Regulation on Markets in Crypto Assets (MiCa) coming into force this year, which Bulgaria, as a member state of the European Union, is obliged to transpose.

The new law introduces strict rules for transparency, accountability, and consumer protection. It will mark the beginning of crypto regulation in the country.

The Financial Supervision Commission (FSC) will play a key role in regulating the market, responsible for licensing and supervising crypto-asset service providers. The Bulgarian National Bank (BNB) will monitor the activities of electronic money token issuers. This division of responsibilities aims to ensure effective and comprehensive supervision of the entire crypto-asset market.

With the adoption of this law, Bulgaria is expected to become a more attractive destination for companies operating in the field of crypto assets. The clear regulatory environment is expected to create certainty for investors and encourage the development of new financial products and services based on blockchain technology.

The project will have a positive effect on financial innovation and the financial sector as a whole, encouraging the spread of new crypto products and technologies in our country," says a statement from the Bulgarian Ministry of Finance.

Translated by Tzvetozar Vincent Iolov