The Law on Digital Property: How is the use of virtual currencies regulated?
The Law on Digital Property, which regulates the area of digital property and business activities in Serbia, came into force today, thus regulating the purchase, sale, exchange and transfer of virtual currencies and digital tokens, such as bitcoin and other cryptocurrencies, the Serbian government announced.
„Digital property, i.e., virtual property, according to the Law, represents a digital record of value that can be digitally bought, sold, exchanged or transferred and can be used as a means of exchange or for investment purposes, where digital property do not include digital records of currencies that are legal means of payment and other financial assets regulated by other laws, except when otherwise regulated by this Law „, it is stated in the announcement.
As explained, there are two types of digital property – virtual currency and a digital token.
„Digital tokens are particularly important as a form of alternative financing of young and innovative companies and startups. Virtual currencies, with bitcoin as its most famous representative on a global level, are innovative means of exchange that are not issued or guaranteed by central banks unlike ordinary money,“ it is said in the statement.
When it comes to providers of services related to digital property, the Law introduced the institute of licenses, as well as the minimum share capital that a company is obliged to have when applying for a license to provide services related to digital property.
The Law on Digital Property enables financing using investment tokens, improves and develops the capital market using digital technology, and strengthens the framework for battle against abuse in the digital property market, as well as money laundering and funding terrorism.
The National Bank of Serbia and the Securities Commission are designated as supervisory bodies in the Law on Digital Property.
Izvor: Beta
Foto: Pixabay
