CMS Expert Guide to Crypto Regulation in Slovenia

Disclaimer: This chapter was last updated 29 July 2024 and does not reflect any subsequent developments. The information provided is intended for general informational purposes and should not be construed as legal advice.

The draft implementing law for matters falling within the competence of the Member States has been in inter-ministerial coordination (a pre-legislative procedure phase) since the end of February 2024. It's possible that the draft will be amended once it's submitted to the government and later, when it's actually considered in the legislative process in the National Assembly.

Most notably, in its current draft, it does not provide for a transitional period in accordance with Article 143(3) of MiCAR, but rather requires all CASPs either to obtain the authorisation by 30 December 2024 or to cease providing the services for which authorisation is required under MiCAR. 

Among its other notable provisions, it:

• delimitates competences between the Securities Market Agency and the Bank of Slovenia;
• regulates the manner in which supervision is to be carried out, lays down the supervisory measures, regulates the procedure for the imposition of supervisory measures and defines the offences and the fines to be imposed by the competent authorities;
• provides for mutatis mutandis applicability of Slovenian Market in Financial Instruments Act, Slovenian Banking Act and the Slovenian Act on payment services, electronic money services and payment systems.

Direct sales of tokens by issuers: YES

Direct sales of tokens by issuers are regulated activities (falls under point (e) of the virtual currency services definition above).

Exchange (buy/sell): YES

The exchange of virtual currency for fiat currency and for other virtual currency are regulated activities (falls under points (a) and (b) of the virtual currency services definition above).

Custody (hold): YES

Custody of virtual currency is a regulated activity (falls under point (d) of the virtual currency services definition above).

Borrowing/lending: YES

Depending on the specifics of the borrowing/lending model, such activities could incidentally include any of the regulated activities under points (a) through (d) of the virtual currency services definition above.

Yield/staking services: YES

Depending on the specifics of the yield/staking model, such activities could incidentally include any of the regulated activities under points (a) to (d) of the virtual currency services definition, as well as point (e) of the virtual currency services definition (e.g. in case of “liquid staking”).

Staking on proof of stake consensus mechanisms

Yes, if it is provided as a service by a natural or legal person in the course of his business or professional activity for a third party (e.g. staking customers' funds on request, delegated staking, etc.).

Yes, for the time being, both on an active solicitation and reverse solicitation basis.

Once MiCAR enters into force, active solicitation will be prohibited, and the reverse solicitation exemption will apply.

For establishing a company, approx. 2 – 8 weeks are needed, with the duration of the process very much depending on the client availability to collect, execute and deliver the necessary documents and information.

The process for registration with the Office of the Republic of Slovenia for the Prevention of Money Laundering takes in general a couple weeks, but may take longer in case of beneficial owners from other countries or in case of more complex documentation.

Usual costs of establishing a standard limited liability company consist of (i) notary fees approx. EUR 300-500, (ii) translation fees approx. EUR 100 - 200, (iii) legal advisory cost approx. EUR 2,000 - 3,000, which gives a total of approx. EUR 2,500 - 3,500.

The Office of the Republic of Slovenia for the Prevention of Money Laundering Prevention rejects the request for entry in the register if the legal representative, manager, person carrying out the activity of a self-employed individual or an individual engaged in an independent activity, or the ultimate beneficial owner of the virtually currency services provider, has been convicted:

• for a criminal act committed with intent, which is prosecuted ex officio; or
• for one of the following criminal acts committed through negligence: concealment, disclosure and unauthorized acquisition of trade secrets, money laundering or disclosure of classified information, as long as the legal consequences of the conviction last.

Please note that with respect to establishing a company, a bank account needs to be opened. However, Slovenian banks are usually very cautious when opening bank accounts for companies intending to set up a crypto-asset business. In order to avoid unnecessary delays, we advise to check this matter with the respective bank before initiating any other activities. 

There is no additional national specific regulation that would impose any compliance requirements on crypto-asset businesses.