1.  How is crypto regulated?
  2. How quick and easy is to get a MiCA licence in Bosnia and Herzegovina?
  3. Are the following activities regulated or unregulated in Bosnia and Herzegovina? Direct sales of tokens by issuers ― Exchange (buy/sell) ― Custody (hold) ― Borrowing/lending ― Yield/staking services ― Staking on proof of stake consensus mechanisms
  4. Can offshore business provide services to local customers on either active solicitation or reverse solicitation basis? 
  5. How long would establishing a cryptoasset business/obtaining a license in your jurisdiction take?
  6. What would be the approximate overall cost of obtaining a licence?
  7. What is the probability (%) of success in obtaining a licence?
  8. What other limitations are there in your jurisdiction when looking to set up a cryptoasset business? E.g., Compliance requirements and physical presence

jurisdiction

Bosnia and Herzegovina

Disclaimer: This chapter was last updated on 20 June 2025 and does not reflect any subsequent developments. The information provided is intended for general informational purposes and should not be construed as legal advice.

1. How is crypto regulated?

AML RegulationFinancial Services Regulation

At the state level of Bosnia and Herzegovina (BiH), virtual currencies are regulated by the new Law on the Prevention of Money Laundering and Financing of Terrorist Activities of BiH from February 2024. Virtual currencies are defined as a digital record of value that has not been issued and whose value is not guaranteed by the central bank or other public sector institution, which is not necessarily considered as legal tender and does not have the legal status of money or currency, but is accepted as a means by natural and legal persons for exchange and can be transferred, stored, bought, sold, or exchanged electronically.

A provider of services related to virtual currencies is a legal or natural person that provides one or more services for the account of or on behalf of another natural or legal person, such as:

  • custody and/or management of virtual currencies or instruments that enable control over virtual currencies (wallet depository service provider),
  • organising a platform for trading virtual currencies,
  • exchange of virtual currencies for currency that is legal tender,
  • exchange of virtual currency for another virtual currency,
  • transfer of virtual currency, i.e., receiving and executing virtual currency orders on behalf of third parties,
  • participating in and providing financial services in connection with the issuer's offer and/or sale of virtual currency.

For clarification purposes, please note that Bosnia and Herzegovina (“BiH”) consists of two administrative entities (the Federation of Bosnia and Herzegovina (“FBiH”) and Republika Srpska (“RS”)) and a condominium – Brčko District (“BD”). Considering this, legislation in certain matters is introduced at both the state (BiH) level, which is applicable to the entire territory of the country, and at the entity level for specific matters. Depending on the subject, legislation may be adopted at several levels.

In Republika Srpska (RS), virtual currencies are recognised under the Law on Securities Market, which defines the concept of virtual currencies and services related to virtual currencies in the same manner as the Law on the Prevention of Money Laundering and Financing of Terrorist Activities of BiH. Additionally, this law sets out the competences of the RS Securities Commission in connection with virtual currency operations. The RS Securities Commission maintains records of service providers related to virtual currencies. Please note that the RS, the RS Securities Commission, and other public sector institutions do not guarantee the value of virtual currencies and are not responsible for any potential damage or losses incurred by users, holders of virtual currencies, or persons providing services related to virtual currencies.

 

2. How quick and easy is to get a MiCA licence in Bosnia and Herzegovina?

As of now, BiH has not initiated the adoption of the EU's Markets in Crypto-Assets (MiCA) regulation, and consequently, obtaining a MiCA license within the country is not possible. The current legal framework in BiH lacks comprehensive regulations concerning digital assets. To address this gap, it is essential to develop and implement new legislation that governs various aspects of digital property, including its issuance, the establishment of security interests, and the roles and responsibilities of supervisory authorities overseeing digital assets.

 Not applicable.

3. Are the following activities regulated or unregulated in Bosnia and Herzegovina? Direct sales of tokens by issuers ― Exchange (buy/sell) ― Custody (hold) ― Borrowing/lending ― Yield/staking services ― Staking on proof of stake consensus mechanisms

(please indicate if NFTs are treated differently from fungible crypto assets for each activity)

The following activities, i.e., services related to virtual currencies, are currently regulated at the state level (BiH):

  • custody and/or management of virtual currencies or instruments that enable control over virtual currencies (wallet depository service provider),
  • organising a platform for trading virtual currencies,
  • exchange of virtual currencies for currency that is legal tender,
  • exchange of virtual currency for another virtual currency,
  • transfer of virtual currency, i.e., receiving and executing virtual currency orders on behalf of third parties,
  • participating in and providing financial services in connection with the issuer's offer and/or sale of virtual currency.

Direct sales of tokens by issuers and NFTs are currently not expressly regulated in BiH.

In RS, the following activities, i.e., services related to virtual currencies, are currently regulated:

  • custody and management of virtual currencies on behalf of third parties (wallet depository service provider),
  • organising a platform for trading virtual currencies,
  • exchange of virtual currencies for legal currency,
  • exchange of virtual currencies for another virtual currency,
  • transfer of virtual currencies, i.e., receiving and executing virtual currency orders on behalf of third parties,
  • implementation of the offer or sale of virtual currencies.

Direct sales of tokens by issuers and NFTs are currently not expressly regulated in RS.

AML RegulationFinancial Services Regulation

Provider of services related to virtual currencies is defined as a legal or natural person that provides one or more of the following services:

  1. custody and management of virtual currencies on behalf of third parties (provider of wallet depository services),
  2. organizing a platform for trading of virtual currencies,
  3. exchange of virtual currencies for a currency which is the official means of payment,
  4. exchange of virtual currencies for another virtual currency,
  5. transfer of virtual currency, i.e., receiving and executing orders for virtual currency on behalf of third parties,
  6. implementation/execution of offer, i.e., sale of virtual currencies.

Provider of services related to virtual currencies is defined as a legal or natural person that provides one or more of the following services:

  1. custody and management of virtual currencies on behalf of third parties (provider of wallet depository services),
  2. organizing a platform for trading of virtual currencies,
  3. exchange of virtual currencies for a currency which is the official means of payment,
  4. exchange of virtual currencies for another virtual currency,
  5. transfer of virtual currency, i.e., receiving and executing orders for virtual currency on behalf of third parties,
  6. implementation/execution of offer, i.e., sale of virtual currencies.

4. Can offshore business provide services to local customers on either active solicitation or reverse solicitation basis? 

Offshore companies are not explicitly regulated by BiH legislation. In general, these companies can do business and offer services to local clients and cooperate with them, but all within the framework of the relevant laws of BiH.

5. How long would establishing a cryptoasset business/obtaining a license in your jurisdiction take?

AML RegulationFinancial Services Regulation
In Bosnia and Herzegovina (BiH), the AML regulations do not directly govern the establishment of cryptocurrency companies. The legal status and operational framework for such entities remain ambiguous in FBiH and BD. However, in RS, the Law on the Securities Market provides a form of licensing or notification process for virtual currency services. This law mandates that providers of services related to virtual currencies must implement measures and actions as defined by the AML and Countering the Financing of Terrorism (CFT) regulations applicable in BiH.

In RS, the timeframe to consider includes:

  • establishing a company, which takes approximately 2–5 weeks, depending on specific client requirements regarding corporate governance and structure, and 
  • notifying the RS Securities Commission about the provision of services related to virtual currencies by the service provider within 30 days of company establishment. This notification must include a description of the internal control measures undertaken to comply with regulations on preventing money laundering and financing of terrorist activities.

A person who is not registered with the RS Securities Commission cannot provide services related to virtual currencies.

Please note that the above timeframes largely depend on the current workload of the relevant authorities.

6. What would be the approximate overall cost of obtaining a licence?

Approximately EUR 150–300 for the establishment of a company, excluding legal or advisory fees, and in RS, approximately EUR 500 for the approval of registration and issuance of a certificate of registration in the records of service providers related to virtual currencies.

The costs of establishment depend on factors such as the shareholders’ country of origin, the number of shareholders, and the number of management members. These costs may include, but are not limited to, translation services, apostille verification, and potential notary and court fees.

7. What is the probability (%) of success in obtaining a licence?

Considering virtual currencies have only recently been introduced, it is difficult to currently provide an assessment and probability percentage of success of registration.

However, if the applicant has all formal requirements fulfilled, accompanied with a high-quality application, underlying documents, and experienced legal advisors, the probability of success of registration is high.

8. What other limitations are there in your jurisdiction when looking to set up a cryptoasset business? E.g., Compliance requirements and physical presence

AML RegulationFinancial Services Regulation
The applicable requirements prescribed by the relevant AML/CFT law refer to specific requirements for bank accounts, as well as registration and confirmations from tax authorities, registration with competent authorities for statistics, etc. Additionally, the status and implementation of crypto asset business are not yet clear enough in FBiH and BD, as no express rules or regulations for crypto currently exist.

According to the Law on Securities Market of RS, the establishment of a legal presence is necessary, along with registration/notification with the Securities Commission of RS. While there are no regulatory licences specific to crypto, a notification process and entry into the register with the Securities Commission of RS are required, as mentioned above.

According to the Law on Business Companies of RS, legal presence in BiH is typically achieved through a limited liability company (in local: društvo sa ograničenom odgovornošću (d.o.o.)), but it may also take the form of a joint-stock company (in local: akcionarsko društvo (a.d.)) or a natural person, i.e., entrepreneur (in local: preduzetnik).