Quick Answer
Crypto is legal but operates in a gray area.
- Trading is allowed, but the sector remains largely unregulated by specific crypto laws.
- New laws are being developed to align with EU regulations like MiCA.
Legal Status of Crypto in Macedonia
Cryptocurrency in North Macedonia currently operates in a legal gray zone, meaning it is not illegal but remains largely unregulated. This ambiguity stems from a lack of specific crypto legislation, though the National Bank has clarified that an absence of rules does not make the activity illegal. While a comprehensive framework is still in development, compliance requirements are enforced through the Law on Prevention of Money Laundering and Financing Terrorism, with the Financial Intelligence Unit acting as a key supervisory body.
Current Regulations
Currently, North Macedonia lacks a dedicated crypto law, creating a legal gray area where trading is permitted but not specifically regulated. The country took a significant step in 2022 by amending its AML and CTF Law to include definitions for "virtual assets" and establish obligations for service providers. This legislation imposes anti-money laundering duties, limits cash transactions to the equivalent of €500, and designates the Financial Intelligence Unit as the supervisory body. While general financial rules apply, the market operates without comprehensive consumer protection, a situation the government aims to rectify with new legislation influenced by EU standards.
Regulatory Authorities
Several regulatory bodies in North Macedonia share the responsibility of overseeing the financial sector, with their authority extending to crypto activities.
- National Bank of the Republic of North Macedonia (NBRM): The NBRM supervises banks, payment service providers, and exchange offices, which may include entities dealing with virtual assets. It is also responsible for issuing warnings about crypto risks and ensuring compliance with AML/CFT regulations within its jurisdiction.
- Financial Intelligence Unit (FIU): As the primary supervisory body for anti-money laundering, the FIU ensures virtual asset service providers comply with AML/CTF laws. It also oversees any financial entities not assigned to another specific regulator.
- Securities and Exchange Commission (SEC): The SEC is responsible for supervising the securities market, including brokerage firms and investment funds. Its authority would extend to crypto-assets if they are legally defined as securities or investment products.
- Insurance Supervision Agency (ISA): The ISA oversees the insurance sector, including companies, brokers, and agents. It would be responsible for regulating any insurance products or services offered in connection with virtual assets.
Historical Context
North Macedonia’s crypto journey began with a prohibitive stance. In 2016, the National Bank issued warnings against crypto, and by 2018, trading was considered illegal. A significant policy shift occurred as authorities later clarified that the absence of specific laws didn't equate to illegality, moving crypto into an unregulated but tolerated phase. The first concrete regulations arrived in July 2022 with amendments to the AML/CTF law, which defined virtual assets and set compliance rules. Now, the government is developing comprehensive laws influenced by the EU’s MiCA framework, aiming to license exchanges by 2025-2026 to attract investment.
Compliance Requirements for Businesses in Macedonia
Businesses in North Macedonia, particularly those in the financial and virtual asset sectors, must adhere to a strict set of compliance rules primarily outlined in the Law on Prevention of Money Laundering and Financing of Terrorism (AML/CTF Law). Key obligations include:
- AML Checks:
- Customer Due Diligence (CDD): Obliged entities must identify and verify customers and beneficial owners, monitor their transactions, and keep records for at least ten years.
- Suspicious Transaction Reporting (STR): Any transaction suspected of being linked to money laundering or terrorist financing must be reported to the Financial Intelligence Unit (FIU).
- Wire Transfers: Payment service providers must ensure that transfers are accompanied by accurate data on both the payer and payee, with specific rules for transfers of all sizes.
- Internal Controls: Businesses must implement internal risk management programs, which include appointing a compliance officer, screening employees, providing ongoing training, and conducting independent audits, as detailed in the 1st Enhanced Follow-up Report.
- KYC Requirements:
- Identification and Verification: Before establishing a business relationship, entities must identify clients using valid, original, or notary-verified documents. For legal entities, this includes reviewing registration documents to identify founders, representatives, and beneficiaries.
- Beneficial Ownership: The identity of the ultimate beneficial owner must be verified using reliable and independent sources, such as the official beneficial owner register or a notarized statement from a legal representative.
- Ongoing Monitoring: The AML and CTF Law requires continuous monitoring of business relationships and transactions to ensure they align with the client's known risk profile and business activities.
- Other Mandatory Procedures:
- Risk-Based Approach: Both businesses and supervisors are required to apply a risk-based approach, focusing compliance efforts on areas of higher risk.
- Record Keeping: All documents and records related to transactions and customer identification must be kept for a minimum of ten years.
- Sanctions Compliance: Businesses must implement systems to screen against and enforce international and national sanctions, freezing assets and reporting to authorities as required.
- Data Protection: All compliance procedures must be carried out in accordance with personal data protection regulations.
Why this matters for Cross-Border Payments
The stringent AML/CTF framework in North Macedonia is pivotal for cross-border payments, as it seeks to align the nation with international financial standards and prevent illicit fund flows. For businesses, this translates into significant operational hurdles, including heightened compliance costs, mandatory detailed reporting for all wire transfers, and the need for robust customer due diligence systems. These rigorous requirements can introduce friction, leading to transaction delays and potential complexities when dealing with international partners, especially in the fast-moving crypto sector where global regulations vary widely.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides a global payments platform built on Bitcoin, designed to streamline cross-border transactions. Its two main products, Lightspark Connect and Grid Switch, address different needs. Connect offers native access to the Bitcoin Lightning Network, handling complex infrastructure like node management and liquidity. Grid Switch bridges traditional finance with crypto by connecting domestic real-time payment systems globally, using Bitcoin as an intermediary settlement asset. This allows for instant, low-cost fiat transfers, bypassing the friction of conventional payment rails.
These tools help businesses navigate the operational hurdles of cross-border payments. For regulated institutions facing strict AML/CTF rules, Lightspark facilitates compliance by providing features like audit-ready reporting and integrations for Travel Rule and OFAC screening. By abstracting away technical complexity and offering flexible, compliance-ready solutions, Lightspark enables financial institutions to leverage crypto for faster, more efficient global payments while adhering to their regulatory responsibilities.
To learn more about Lightspark's solutions for instant, global payments, visit their website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- Andonova, Ljupka Noveska, et al. "Global FinTech Guide – Section: DLT and cryptocurrencies (North Macedonia)." Multilaw, 2022, multilaw.com/Multilaw/ZENTSO/BusinessGuides/Presentation/Section_Home.aspx?GuideId=2&GuideCountry=North+Macedonia&GuideSection=431.
- ---. "Global FinTech Guide – KYC requirements (North Macedonia)." Multilaw, 2022, multilaw.com/Multilaw/ZENTSO/BusinessGuides/Presentation/Section_Home.aspx?GuideId=2&GuideCountry=North+Macedonia&GuideSection=437.
- Coin World. "North Macedonia Aims to License Crypto Exchanges by 2025-2026." AInvest, 23 June 2025, www.ainvest.com/news/north-macedonia-aims-license-crypto-exchanges-2025-2026-2506/.
- Council of Europe, Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL). Anti-money laundering and counter-terrorist financing measures North Macedonia 1st Enhanced Follow-up Report & Technical Compliance Re-Rating. MONEYVAL, May 2025, rm.coe.int/moneyval-2025-4-mk-5th-round-1st-enhanced-fur/1680b6792a.
- "Is investing in cryptocurrencies abroad legal and what is the treatment of these transactions in payment operations abroad?" National Bank of the Republic of North Macedonia, www.nbrm.mk/ns-newsarticle-dali-e-legalno-vlozuvaneto-vo-kripto-sredstva-vo-stranstvo-i-kakov-tretman-imaat-ovie-transakcii-vo-platniot-promet-so-stranstvo-en.nspx.
- "Macedonia and Cryptocurrency." Freeman Law, 2018, freemanlaw.com/cryptocurrency/macedonia/.
