Quick Answer
Yes, cryptocurrency is legal and regulated in Bulgaria.
- Activities are regulated under the EU’s MiCA framework and Bulgarian national law.
- Service providers must obtain a license and follow strict AML/KYC rules.
Legal Status of Crypto in Bulgaria
Cryptocurrency in Bulgaria is fully legal and operates within a well-defined regulatory framework, moving it out of any previous legal gray area. This clarity is primarily due to the country's alignment with the European Union's Markets in Crypto-Assets (MiCA) Regulation, which was implemented through a national Markets in Crypto-Assets Act. Consequently, crypto service providers are subject to licensing and supervision by regulatory authorities like the Financial Supervision Commission (FSC) and must adhere to strict Anti-Money Laundering (AML) compliance requirements.
Current Regulations
Bulgaria's current crypto regulations are built upon the European Union's Markets in Crypto-Assets (MiCA) Regulation, which is implemented locally through the national Markets in Crypto-Assets Act. This framework designates the Financial Supervision Commission (FSC) as the primary regulatory body responsible for licensing and overseeing crypto-asset service providers (CASPs). While activities were previously governed mainly by the Measures Against Money Laundering Act, the new regime requires all CASPs to obtain a license from the FSC, adhere to strict operational standards, and maintain robust AML compliance to operate legally.
Regulatory Authorities
Several key regulatory bodies in Bulgaria are responsible for overseeing the crypto landscape:
- Financial Supervision Commission (FSC): As the primary regulator under the Markets in Crypto-Assets Act, the FSC is responsible for licensing and supervising most crypto-asset service providers and issuers. It ensures compliance with MiCA regulations, maintains a public register, and has the power to enforce rules to protect consumers.
- Bulgarian National Bank (BNB): This authority specifically oversees issuers of electronic money tokens (EMTs), including e-money stablecoins. The BNB acts as the competent authority for these entities, ensuring they comply with national and EU financial regulations.
- National Revenue Agency (NRA): Previously responsible for registering crypto providers under anti-money laundering laws, the NRA's role has transitioned following the MiCA implementation. It now focuses on tax compliance for crypto businesses and assists in the review of license applications.
- Financial Intelligence Directorate (FID): Operating under the State Agency for National Security (SANS), this is Bulgaria's main anti-money laundering enforcement body. It is responsible for receiving, analyzing, and disseminating reports on suspicious transactions to prevent financial crime within the crypto sector and beyond.
Historical Context
Bulgaria's crypto regulation began with anti-money laundering rules under the Measures Against Money Laundering Act (MAMLA). A key policy shift occurred with the adoption of the EU’s MiCA Regulation, implemented nationally through the Markets in Crypto-Assets Act in July 2025. This moved the country from a simple registration system under the National Revenue Agency to a comprehensive licensing framework supervised by the Financial Supervision Commission (FSC). The change increased compliance burdens but also provided legal clarity and EU passporting rights for licensed firms, professionalizing the market.
Compliance Requirements for Businesses in Bulgaria
Businesses in Bulgaria's crypto sector must adhere to a strict set of compliance rules designed to prevent financial crime. These obligations, primarily outlined in the Anti-Money Laundering Measures Act (AML Act), are comprehensive and require diligent implementation. Key requirements include:
- Customer Due Diligence (CDD): Firms must perform thorough Know Your Customer (KYC) checks to identify and verify the identity of all customers and their Ultimate Beneficial Owners (UBOs). This process includes ongoing monitoring of business relationships and applying Enhanced Due Diligence (EDD) for customers deemed high-risk.
- Risk Assessment and Internal Policies: Companies are required to conduct and document a risk assessment of their exposure to money laundering and terrorist financing. Based on this assessment, they must develop and implement comprehensive internal policies, procedures, and controls.
- Transaction Monitoring and Reporting: Continuous monitoring of customer transactions is mandatory to detect unusual or suspicious activities. Any such activities must be promptly reported to the Financial Intelligence Directorate (FID) of the State Agency for National Security (SANS).
- Record-Keeping: All records related to customer due diligence, transactions, and internal reports must be securely stored and maintained for a minimum period of five years.
- UBO Disclosure and Training: All legal entities must disclose their UBOs to the appropriate central register (e.g., the Commercial Register). Additionally, companies must provide regular AML training to employees to ensure they understand their compliance responsibilities.
Why this matters for Cross-Border Payments
For businesses conducting cross-border payments with India, Bulgaria's robust regulatory framework creates a double-edged sword. While adherence to EU-level AML/KYC standards can build trust with Indian partners, it also introduces significant operational friction. Navigating the differing compliance and reporting requirements between Bulgaria's MiCA-based system and India's own stringent financial regulations can lead to transaction delays and increased administrative costs. This regulatory mismatch presents a key pain point for firms seeking seamless crypto-based transactions between the two nations.
How Lightspark Enables Compliant Crypto-Native Payments
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To help regulated institutions navigate complex compliance landscapes, Lightspark provides a suite of tools. The platform includes features like built-in OFAC screening, travel rule support, and audit-ready reporting. By offering developer-friendly APIs and flexible custody options, Lightspark facilitates integration for financial institutions, allowing them to leverage modern payment rails while adhering to their own regulatory obligations.
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Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
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- Mitkova, Adelina, and Nadya Elchinova. “Doing crypto in Bulgaria. What do you need to know?” Deloitte, Deloitte Central Europe, www.deloitte.com/ce/en/related-content/bg-doing-crypto-in-Bulgaria.html.
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- Team Sanction Scanner. “Anti-Money Laundering (AML) in Bulgaria.” Sanction Scanner, Sanction Scanner, 27 Sept. 2023, www.sanctionscanner.com/aml-guide/anti-money-laundering-aml-in-bulgaria-137.
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