The Serbian Parliament enacted the new Digital Assets Act ("DAA"), which will come into force on 29 June 2021. The main points of the new framework are outlined below, and the topic is discussed in more detail in our latest blog article here:
- The DAA regulates all digital assets regardless of the technology on which those digital assets are based.
- The DAA recognises two types of digital assets: virtual currencies and digital tokens.
- The DAA recognises the concept of digital assets mining, but this area is excluded from the scope of the DAA.
- The government authority with competence over virtual currencies is the National Bank of Serbia ("NBS"), while the authority with competence over digital tokens is the Serbian Securities Commission ("SEC").
- Digital assets can be issued with or without a "white paper".
- Secondary and OTC trading are allowed with or without an intermediary, and the use of smart contracts is explicitly allowed for secondary trading.
- Digital assets services providers must be incorporated in Serbia and hold the appropriate NBS/SEC licences.
- A pledge may be established over digital assets, but it must be registered with a service provider specifically licensed to operate a digital asset pledge register.
- Parties may enter into a fiduciary agreement for securing receivables or for other purposes.
- Fines and criminal liability: the maximum penalty for a breach of the DAA is RSD 5,000,000 (approx. EUR 43,000) or up to 10 % of annual turnover for the preceding financial year, whichever is higher. Individuals engaged in insider dealing or market manipulation may also be criminally liable (with a prison term of five to eight years and a fine).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.