Is Bitcoin Legal in Bulgaria

Cryptocurrencies are not issued by a central bank or other government agency, and do not have a fixed face value. A key difference between cryptocurrencies and money is the fact that cryptocurrencies are not legal tender (although they are used as a medium of exchange for which other fiat currencies, goods or services can be purchased). A creditor is not obliged to accept payments via cryptocurrencies, nor to have a mandatory face value that is accepted without restrictions when it comes to regular currencies. Unlike fiat currencies, cryptocurrencies cannot serve as a store of value because they lack the stability inherent in money. Most exchanges allow you to buy Bitcoin or another cryptocurrency worth a few dollars. The Financial Supervisory Commission (FSC) in Bulgaria has not issued any explicit legal guidelines. Currently, cryptocurrencies are legal throughout the EU, but specific regulations and standards vary from country to country, similar to the United States, where laws governing the crypto industry vary from state to state and federal agencies also interpret and regulate them differently. Two Bulgarian nationals have been charged with stealing nearly $1.5 million worth of electricity used to illegally operate cryptocurrency mining farms. provide services through a company that consist of exchanging traditional currency for the virtual currency „Bitcoin” and vice versa. Kraken is considered one of the safest Bitcoin exchanges. The platform provides cryptographically verified evidence for reserve audits.

These audits verify the total amount of cryptocurrency held by Kraken. The company seems to be well capitalized and very safe. 🌎 See the legality of Bitcoin and cryptocurrencies around the world Cryptocurrency mining is not expressly or otherwise prohibited by law in Bulgaria. However, because mining is not explicitly regulated or authorized, it carries certain legal and regulatory risks. Buying Bitcoin and other cryptocurrencies in Bulgaria is a simple process and usually takes less than 10 minutes to be fully set up. (e) transactions, including acts of negotiation, involving cash, banknotes and legal tender coins, with the exception of collectors` items, namely: gold, silver or metal banknotes or coins which are not normally legal tender, or numismatic interest coins; Once your account is funded, you are ready to buy your first Bitcoin. It is important to note that you do not need to buy a full Bitcoin. Bitcoin ATMs are a great way to buy Bitcoin with cash and offer little to no requirements for KYC.

ATMs are often located in convenience stores, stores, restaurants, malls or airports. Find one near you with our ATM card. Bulgaria has no official legal definition of cryptocurrencies and bases its legal approach on the European Union and the existing local financial framework. The Bulgarian national tax authority has issued a statement to broadly define the tax treatment of cryptocurrencies, but does not take a closer look at the particular cases. They determined which category applies to natural and legal persons, which are income from the sale of financial assets or, in the case of corporations, corporate income tax. As for the latter, no license is required to operate a business, since cryptocurrencies are not defined as financial instruments or electronic money. [155] Bulgarian Central Bank Warns Consumers Against Cryptocurrency Risks, Reuters (February 14, 2018), www.reuters.com/article/crypto-currency-bulgaria/bulgaria-central-bank-warns-consumers-of-cryptocurrency-risks-idUSL8N1Q45KW, archived perma.cc/YKZ9-9F6R. Yes, you can buy Bitcoin safely and anonymously using P2P (Peer to Peer) exchanges such as Bisq, Paxful, LocalSwap and LocalBitcoins. The existing civil, administrative and criminal law in this area in Bulgaria is thin and there is therefore a likelihood of rapid legal changes and disagreements between decision-makers.

After purchasing Bitcoin from an exchange, it is important to withdraw to your own non-custodial wallet for reasons of security and privacy and full control over your Bitcoin. If you need to consult a good lawyer, contact us. We are happy to help you with these and all other legal questions. Based in Hong Kong, Bitfinex has long been one of the largest Bitcoin USD exchanges in the world. Bitfinex accounts can only be funded by bank transfer, their fees for accepting such transfers are low at only 0.1%. However, in August 2016, it was hacked and lost about 30% of its users` funds. While Bitfinex can be useful for buying large amounts of bitcoin, it`s probably best not to use the exchange until it fully compensates the affected users. To start buying Bitcoin and other cryptocurrencies, you need to link a bank account or credit card to the exchange. Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country in the world with legal or regulatory requirements for cryptocurrency. The following globe provides links to country-specific summaries: Once you`ve purchased Bitcoin or the cryptocurrency of your choice, it`s important to withdraw it to your own secure personal wallet.

Bitcoin and other cryptocurrencies are allowed to be legally traded and held in Bulgaria. The above concludes that cryptocurrencies must be distinguished from fiat currency and other legal means of payment. At the same time, it is acceptable for them to be treated as financial assets, as the holder of the cryptocurrency could receive another currency through the relevant exchanges, recognized as a means of payment, goods or services. In the following article, we look at the legality of cryptocurrency mining in Bulgaria, in particular, whether it is prohibited or regulated by law. The register was created to achieve greater clarity in this specific sector and to limit opportunities for money laundering and other illegal practices.