Bulgaria implements MiCA: the crypto market comes under strict control

The document was passed by an overwhelming majority of members of parliament, and discussion of the draft began back in the summer of 2024.

What does this mean for business and investors?

The adopted law introduces:

• official definitions of the terms “crypto-asset” and “token”,
• rules for the public offering of crypto-assets and their trading on platforms,
• licensing requirements for issuers and crypto service providers,
• mechanisms for state supervision and market oversight.

Bulgaria thus becomes part of a pan-European regulatory environment with uniform standards for regulating crypto-assets throughout the EU.

Aims of the law:

• protection of investors and consumers,
• greater market transparency,
• encouraging innovation and attracting investment.

Who regulates the market?

The Financial Supervision Commission (KFN) is the main regulator.
It will:

• license companies (except those issuing tokens treated as electronic money),
• monitor the activities of crypto providers,
• where necessary, apply to the court to freeze the assets of offenders.

According to estimates, more than 100 companies previously registered with the National Revenue Agency (NAP) of Bulgaria will come under KFN supervision.

The Bulgarian National Bank (BNB) is responsible for tokens equivalent to electronic money (stablecoins, for example). It will issue licences and monitor compliance with them.

Unprecedented powers for the KFN

The most controversial provision is the one allowing the KFN to block, without a court ruling:

• websites,
• social media pages,
• mobile applications,
• domains.

The decision is taken unilaterally, without prior judicial review, which has drawn criticism from the opposition and human rights organisations. Experts point to a high risk of abuse and the absence of sufficient safeguards for companies’ rights.

Sanctions and fines

The law gives the KFN a broad set of instruments:

• official warnings,
• orders,
• freezing of operations,
• withdrawal of licences,
• a ban on activity.

Fines:

• up to 6.25% of annual turnover for a first violation,
• up to 12.5% for a repeat violation,
• or a fixed amount of up to 30 million leva (≈15 million euros).

What businesses and accountants need to know

• If you work with crypto assets or tokens, you need a licence from the FSC or the BNB.
• It is important to check compliance with the new requirements regularly.
• You should take into account the risk of digital assets being blocked without a court ruling.

The adoption of the law makes Bulgaria one of the first countries in Eastern Europe to fully adapt European crypto legislation. This may serve both as an incentive for an inflow of investment and as a challenge for market participants, especially under strict supervision.