CMS Expert Guide to Crypto Regulation in Bulgaria

Disclaimer: This chapter was last updated on 28 July 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.

As a member of the European Union, Bulgaria regulates crypto-assets under Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCAR), which provides a harmonised framework for the issuance, offering, and trading of crypto-assets across EU member states. The general MiCAR framework is covered here.

In addition, on 20 June 2025, the Bulgarian Parliament adopted the Markets in Crypto-Assets Act (the "BG MiCA Act"), aligning national legislation with MiCAR. The Act entered into force on 8 July 2025 and governs public offerings of crypto-assets, admission to trading on platforms, and the licensing of crypto-asset service providers (CASPs) and issuers of asset-referenced tokens (ARTs).

The Financial Supervision Commission (FSC) has been designated as the competent authority for most CASPs, while the Bulgarian National Bank (BNB) is responsible for overseeing issuers of electronic money tokens (EMTs), including e-money stablecoins.

CASPs must obtain a MiCAR-compliant licence from the FSC to operate legally in Bulgaria and across the EU. A transitional ("grandfathering") period runs until 1 July 2026:

• Entities registered in the Bulgarian AML register as of 30 December 2024 may continue operating without a full licence until that date.
• Entities registered between 30 December 2024 and the entry into force of the Act must apply for authorisation within three months and comply with MiCAR standards.

CASPs remain subject to the Bulgarian AML regime and are also covered by Regulation (EU) 2022/2554 on digital operational resilience for the financial sector (“DORA”). DORA was transposed into Bulgarian law on 8 July 2025, amending several acts in the financial sector, including the Law on Credit Institutions, the Law on Payment Services and Payment Systems, and the Markets in Financial Instruments Act.

In addition to the adoption of the BG MiCA Act on 20 June 2025 – arguably the most significant step in aligning Bulgaria’s legal framework with MiCAR – the authorities have taken steps to adopt bylaws. The Financial Supervision Commission (FSC) now maintains the register of entities under §5, para. 3 of the BG MiCA Act. Until the Act came into force on 8 July 2025, this register was kept by the National Revenue Agency as the electronic public register under Article 9a of the Anti-Money Laundering Act.

The register published on the FSC website lists issuers and providers of crypto-asset services, excluding issuers of electronic money tokens (EMTs), which fall under the remit of the Bulgarian National Bank (BNB). The FSC is the competent supervisory authority for the listed entities.

According to the BG MiCA Act, persons referred to in Article 4(38) and (39) of the Anti-Money Laundering Act, who were registered in the National Revenue Agency’s electronic public register before 30 December 2024, may continue operating in Bulgaria without a MiCAR licence until 1 July 2026 or until a licence is granted or refused under Article 63 of Regulation (EU) 2023/1114 – whichever occurs first.

Those registered after 30 December 2024 but before the entry into force of the BG MiCA Act must apply for a MiCAR licence under Article 63 of the Regulation within three months of the Act’s entry into force – that is, by 8 October 2025.

The FSC has issued Ordinance No. 76 of 12 June 2025, setting out the fees it will collect, including those related to MiCA licensing. It also published a brief explanatory note on the MiCA Regulation on 23 June 2025.

The Bulgarian National Bank has not yet updated its secondary legislation concerning issuers of EMTs, including e-money stablecoins.

In the BG MiCA Act, crypto-assets are classified in accordance with MiCA into:

1. Asset-Referenced Tokens (ARTs)
2. Electronic Money Tokens (EMTs)
3. Other crypto-assets

We refer to the general EU section for the regulated crypto activities, namely:

• Direct sale of tokens by issuers: Regulated if the tokens fall within MiCAR’s scope (i.e., ARTs, EMTs, or other crypto-assets). Issuers must publish a white paper and may need authorisation, depending on the type of token, unless an exemption applies.
• Exchange (buy/sell): Regulated as a crypto-asset service under MiCAR. CASPs offering exchange, brokerage, and trading services in relation to crypto-assets must obtain a licence to provide their services in the EU.
• Custody (hold): Regulated as a crypto-asset service under MiCAR. CASPs that provide safekeeping or control of crypto-assets on behalf of clients – such as custodial wallet services or the custody of private cryptographic keys granting access to such assets – must obtain a licence to provide their services in the EU.
• Borrowing/lending: MiCAR does not explicitly regulate borrowing and lending as a crypto-asset service within its scope. MiCAR excludes lending and borrowing of crypto-assets, including e-money tokens, from its scope and does not affect applicable national laws governing such activities. As such, if these activities fall under other EU financial regulations (e.g., MiFID/CRD/CRR), they may be subject to additional rules at national level.
• Yield/staking services: Yielding/staking, which involves the process of immobilising crypto-assets to support the operations of proof-of-stake and proof-of-stake-like blockchain consensus mechanisms in exchange for the granting of validator privileges that can generate block rewards, is not explicitly regulated as a crypto-asset service under MiCAR.
• Staking on proof-of-stake consensus mechanisms: Although staking under proof-of-stake consensus mechanisms is not explicitly classified as a regulated service under MiCAR, providers offering staking services on behalf of clients must obtain a licence to provide custody and administration services if they hold clients’ crypto-assets in custody.
• NFTs: MiCAR generally excludes non-fungible tokens (NFTs) unless they are part of a larger fungible series or collection, in which case they might be treated as regulated crypto-assets.

Active solicitation and reverse solicitation are not specifically regulated under Bulgarian law. Accordingly, we refer to the general EU framework.

Active solicitation by offshore firms into the EU is not permitted under MiCAR unless the firm is authorised as a CASP within the EU.

Bulgaria follows MiFID and MiCAR regulations, which do not explicitly prohibit reverse solicitation, and Bulgarian law does not impose stricter local rules. MiCAR permits reliance on reverse solicitation only under strict conditions. Offshore firms may, in certain cases, provide crypto-asset services to an EU client without a MiCAR licence, but only if the client has initiated the request entirely on their own initiative. Reverse solicitation under MiCAR is only permitted under strict and narrowly interpreted conditions. ESMA emphasises that this exemption is exceptional.

• Thus, reverse solicitation is technically tolerated for non-EU financial firms, provided there is:
• No marketing or promotion directed at Bulgarian clients (e.g. websites in Bulgarian, local ads, cold calls);
• Documentation of client-initiated contact;
• Strict case-by-case handling – blanket reliance on reverse solicitation is not acceptable.

Such businesses are usually established as limited liability companies (in Bulgarian: дружество с ограничена отговорност (ООД)). The establishment process typically takes from a few weeks to one month, depending largely on the timeframe for opening a domestic bank account. This may vary depending on the appointed management – for example, whether it is a local or foreign individual.

The timeline for obtaining a MiCAR licence can be broken down into key milestones and broadly includes two main phases: (i) preparation of internal documentation and compliance requirements; and (ii) submission and processing by the competent authority.

The first phase may take between 2 and 4 months and includes:

• appointment of fit and proper directors;
• securing CET1 capital and depositing it with an EEA credit institution;
• establishing board-level governance and centralised ICT governance and risk compliance;
• adopting a GDPR-compliant data hosting policy;
• completing and adopting MiCAR compliance policies (e.g. client fairness and disclosures);
• finalising an initial DORA gap analysis and defining a remediation plan;
• preparing the complete MiCAR application file;
• formalising ICT outsourcing and continuity arrangements.

As for the second phase (submission), there is currently no reliable track record from the Bulgarian authorities, but it is estimated that this stage could take a further 2 to 4 months, including preparation for EU passporting under MiCAR.

In total, the process is expected to take between 4 and 9 months.

In connection with the entry into force of the BG MiCA Act, the FSC issued a special notification confirming that the fees for administrative proceedings related to crypto activities, as well as for the general supervision of licensed companies, are set out in Ordinance No. 76 of 12 June 2025 on the fees collected by the FSC. This follows the repeal of the Annex to Article 27(1) of the Financial Supervision Commission Act, pursuant to § 9, item 3 of the 2025 State Budget Act of the Republic of Bulgaria.

The applicable fees under Ordinance No. 76 are as follows:

One-off licensing fees:

1. Licence for a Class 1 crypto-asset service provider – EUR 5,112 (BGN 10,000)
2. Licence for a Class 2 crypto-asset service provider – EUR 10,225 (BGN 20,000)
3. Licence for a Class 3 crypto-asset service provider – EUR 30,677 (BGN 60,000)
4. Extension from Class 1 to Class 2 licence – EUR 6,135 (BGN 12,000)
5. Extension from Class 2 to Class 3 licence – EUR 18,538 (BGN 37,000)
6. Licence for public offering and/or admission to trading of asset-referenced tokens – EUR 17,895 (BGN 35,000)
7. Approval of a revised white paper for asset-referenced tokens – EUR 2,045 (BGN 4,000)
8. Review and assessment of a recovery plan for issuers of asset-referenced tokens:
   a) Initial review – EUR 10,225 (BGN 20,000)
   b) Updated plan – EUR 5,112 (BGN 10,000)
9. Other authorisations and approvals – EUR 2,556 (BGN 5,000)

Annual supervisory fees:

• A variable fee of 0.03% of total annual income, and
• A fixed fee, depending on the type of activity:
  • Custody and administration of crypto-assets on behalf of clients – EUR 409 (BGN 800)
  • Operation of a crypto-asset trading platform – EUR 6,135 (BGN 12,000)
  • Exchange of crypto-assets for fiat or other crypto-assets – EUR 1,636 (BGN 3,200)
  • Execution of crypto-asset orders on behalf of clients – EUR 511 (BGN 1,000)
  • Placement of crypto-assets – EUR 306 (BGN 600)
  • Receiving and transmitting orders related to crypto-assets – EUR 200 (BGN 400)
  • Advisory services on crypto-assets – EUR 409 (BGN 800)
  • Portfolio management related to crypto-assets – EUR 818 (BGN 1,600)
  • Transfer services on behalf of clients – EUR 5,112 (BGN 10,000)

Other costs:
Administrative start-up costs for a company are estimated at around EUR 200–400 (excluding advisory fees). Annual maintenance expenses depend on whether services such as tax, legal, or ICT are handled internally or outsourced. Rental costs typically range from EUR 8 to 12 per square metre.

As of now, the Bulgarian National Bank has not updated its bylaws with regard to issuers of electronic money tokens (EMTs), including the corresponding licensing fees.

There is currently no practical experience with the MiCAR authorisation procedure before the FSC. However, we expect a high success rate for registrations, as no negative feedback has been received from the authorities so far in relation to crypto business activities.

That said, several challenges should be taken into account during the authorisation process. The most significant include: successfully establishing a Bulgarian legal entity, opening payment accounts, ensuring AML compliance, and addressing other regulatory and operational requirements.

Some Bulgarian banks may be reluctant to open accounts for entities intending to provide crypto services, often resulting in extended processing times. In addition, KYC procedures must be carefully considered.

Foreign managers of the Bulgarian entity are required to obtain a registration number from the National Revenue Agency; this process can still be completed remotely.

It is advisable that the KYC officer appointed by the Bulgarian entity is a Bulgarian speaker.