Bulgaria legal representation

In its opinion, the European Banking Authority provides a definition of cryptocurrencies, which is based on their most important features. The latter defines cryptocurrencies as a digital representation of value. The cryptocurrencies are not issued by a central bank or other public institution, nor are they necessarily linked to any existing currency, but are also used by legal entities and individuals as a means of exchange that can be stored, transferred, or traded electronically. A digital representation of a value should first of all mean that the cryptocurrencies are a digital type.

Limited law to date

To date, no Bulgarian statute has expressly dealt with cryptocurrency and mining.  At the time of writing, there are no pending parliamentary bills dealing with Legal representation in Bulgaria for crypto.

Instead, there has been case law in the Bulgarian courts and Bulgarian regulators working on it.

Cryptocurrency mining is currently lawful and dispute resolution in Bulgaria

Cryptocurrency mining is not expressly or otherwise legally illegal in Bulgaria. Anyway, given that it is not expressly authorised or regulated, mining does involve certain legal and regulatory risks.

According to an opinion of the NRA dating to 2018, cryptocurrency mining may be a service that can be supplied for VAT objectives provided the mining is directly attached to the payment for it and supplied by a taxable person.

A 2015 Sofia Appeal court found that cryptocurrency mining may be lawfully part of the object’s Bulgarian-registered private limited firm.

To arrive at this decision, the court relied and sourced on proof from the Financial Supervision Commission, and Bulgarian National Bank, which are bodies with regulatory ability in the field.

Why pick a Bulgarian law firm for cryptocurrency?

·         Bulgarian law companies have firsthand experience and knowledge of the crypto law Bulgaria and dispute resolution in Bulgaria and its application.

·         Bulgarian laws, like any other country’s laws, contain several specific details. Their thorough understanding and enforcement need great dedication and experience. A Bulgarian legal firm or advisor would have this full understanding. A local law office working with foreign clients naturally has the right knowledge about both Mediation in Bulgaria and ADR in Bulgaria.

·         Knowledge of institutions and their job culture

·         Every administration has its own rules. Legal Bulgarian practitioners are familiar with those Bulgarian institutions. Knowing how the administration works and the details surrounding important legal steps could be of great significance.

·         A local experienced attorney can provide insight into the market condition and the finance and banking system.