The Ministry of Finance in Bulgaria has introduced a draft Law on Cryptoasset Markets aimed at regulating the trading of crypto-assets. This initiative is in response to the European Regulation on crypto-asset markets (MiCa), which Bulgaria is required to adopt. The new legislation will lay the groundwork for crypto regulations in the country. Details about the bill were provided by Adv. Ginka Hristova, a specialist in digital law and president of the International Legal Center.

Lawer Mrs. Hristova emphasized the importance of this law, noting that it fulfills Bulgaria's obligations under the MiCa regulation. The law is expected to grant the Financial Supervision Commission and, to some extent, the Bulgarian National Bank (BNB) the authority to handle licenses and overall regulation for crypto market participants. She explained that the European regulation outlines the primary rules, and the national law must be read in conjunction with it.

Previously, cryptocurrencies in Bulgaria were not regulated but required registration with the National Revenue Agency, tied to anti-money laundering laws. This registration was limited and did not cover broader regulatory needs. Hristova pointed out that the new legislation introduces extensive requirements for entities dealing with crypto-assets, potentially creating challenges due to banks’ reluctance to work with these assets. Banks often refuse to service crypto-related clients, and the draft law might need adjustments to address this issue.

She also noted that while the draft law is generally well-written, there may be modifications to prevent discrimination. The intention behind the regulatory framework is to enhance security and transparency for investors. By imposing licensing requirements and mandating detailed information disclosures, the law aims to provide assurance that crypto providers are properly regulated, thus protecting average users who invest in these assets.

Hristova believes that the regulation will likely reassure investors, as it seeks to bring the previously opaque and profitable gray sector into the light. This move is part of a global trend towards greater transparency in the crypto market.