Serbia Legalizes Crypto Trading With 15% Capital Gains Tax

Serbia has emerged as a notable example of a country that permits the mining and trading of digital currencies through its Law on Digital Assets. The government has chosen to regulate digital assets through defined laws and licensing rules rather than imposing a total ban. The legislation was enacted in 2023, with an amendment in 2025 that allowed trading and investment in crypto under state supervision. However, the use of cryptocurrencies for daily payments by individuals is strictly prohibited. This move indicates Serbia's intention to encourage innovation in the blockchain environment while safeguarding its financial system.

Historically, Serbia's stance on cryptocurrencies has been somewhat ambiguous until the development of an appropriate legal regulatory framework. Between 2014 and 2020, digital assets operated in a legal gray area without any applicable tax laws. In 2021, the National Bank of Serbia issued public warnings about the risks of trading cryptocurrencies, particularly to retail investors, but did not prohibit it outright. The groundwork for the legal framework was laid in 2023 with the establishment of the Law on Digital Assets, which categorized cryptocurrencies as digital property and initiated licensing regimes for virtual asset service providers. By 2025, the legal system was strengthened with updates that included anti-money laundering and know-your-customer duties, along with clearer tax guidelines. Serbia's discreet and structured advancement suggests a realistic approach to encouraging innovation within regulatory oversight.

The Law on Digital Assets, adopted in 2023 and amended in 2025, aims to create a careful yet orderly legal framework for cryptocurrencies in Serbia. The law recognizes cryptocurrencies as digital assets rather than legal tender, providing clear regulations for dealings between enterprises and investors. Key highlights include the legal status of cryptocurrencies as digital property, the regulatory bodies being the Securities Commission and the National Bank of Serbia, and the requirement for exchanges, wallets, and ICO organizers to be licensed. Transactions exceeding €1,000 are subject to AML/CFT compliance reporting, and there is a 15% capital gains tax on profits from digital currencies. Businesses are prohibited from pricing goods or services directly in cryptocurrency.

Serbia has taken a moderated yet cautious approach to cryptocurrencies. All trading, possession, and investment in cryptocurrencies are legal under the Law on Digital Assets, but these activities are tightly controlled. Both individuals and businesses can only conduct operations in the crypto space through licensed entities that comply with anti-money laundering and investor protection standards. The use of cryptocurrencies as payment for goods and services is prohibited, as the government considers digital assets to be investment products, not substitutes for the dinar. The market is under the jurisdiction of the Securities Commission, with the central bank overseeing financial stability. Serbia has legalized trading in regulated terms but banned the use of cryptocurrency as a payment method to promote safe and responsible use under the threat of jeopardizing its monetary policy.

Serbia's approach to crypto innovation includes balanced regulation, allowing crypto trading but restricting payments to protect the Serbian dinar. The country supports blockchain startups through Belgrade’s Digital Assets Hub and prefers private-sector crypto over a state digital currency. Mining is legal but subject to energy-use disclosures due to EU alignment. Serbia aims to attract crypto businesses while mitigating financial risks. However, notable challenges include banking barriers, tax confusion, slow licensing processes, and the growth of the peer-to-peer market due to payment bans. These issues could hinder Serbia’s ambition to become a Balkan crypto leader.

Updates to Serbia's AML/KYC rules in 2025 improved tax obligations and consumer protection. The ongoing preparation of various by-laws will determine well-defined processes for licensing virtual asset service providers, defining initial coin offerings, and approving their white papers. Smart contracts are now legally recognized, enabling automated legal and financial processes. Serbia is expected to introduce a regulatory sandbox and better banking integration for crypto services. The market outlook is positive, with predicted sales for 2025 standing at $22.8 million, increasing to $27.6 million in 2026. Users are anticipated to exceed 698,000 by 2026, and the growth of the crypto market is expected to be $2.48 billion in 2024 and $2.87 billion in 2025. Serbia is positioning itself as a regulated, innovation-friendly crypto economy.

The crypto environment in Serbia, as it reaches 2025, is on the right path towards balancing the legitimizing and protecting role of trading, token issuance, and blockchain innovation within a robust regulatory framework while safeguarding financial stability. With strong compliance regimes, pending legislative developments, and industry buy-in, Serbia is positioning itself as a forward-looking but secure crypto jurisdiction within Southeast Europe. The promise of continual refining by by-law and further engagement by sectoral bodies indicates that the country’s incorporation of digital finance into its national economy will become even deeper.