Montenegro is one of the countries with growing cryptocurrency market.
This is especially important as Europe is a continent characterized by statistical rules that are sometimes overtly aggressive towards cryptocurrencies and unacceptable tax rates are sometimes applied to these assets.
Montenegro has offered an interesting approach to the cryptocurrency business – a soft approach without any special regulatory licenses. These are ordinary financial licenses. So company formation in Montenegro is interesting topic for many people.
In fact, cryptocurrencies have become a popular payment method in the real estate market, as many tourist properties have been paid for with cryptocurrencies through legal processes that have been controlled by the country’s authorities.
To sum it up, why is Montenegro a good fit for your crypto business?
Friendly regulatory environment where crypto businesses have no special rules, regulations or fees
Amazing non-CRS banking system, meaning your income held in Montenegrin banks will not automatically be reported to foreign authorities.
You can use the regulatory sandbox. This is an innovative mode that allows you to temporarily test your technologies and start your fintech business in Montenegro before licensing, and then pay license fees and roll over the profits made in your company.
Montenegro is an EU candidate, which is likely to join the Union in 2025. This means that from now on, all financial licenses will most likely have passport rights.
Montenegro uses the euro and exercises fairly loose exchange controls. You can use other currencies for transactions, including cryptocurrencies. Capital transactions in Montenegro, including the transfer of property from and to Montenegro, can be carried out with maximum freedom.
The country is open to expats both legally and culturally. Foreign investors and non-residents have equal economic rights with local residents. Moreover, Montenegro is a cosmopolitan society open to foreigners.
The cost of the consumer basket is very low, especially considering that it offers the same comfort as in any other European country.
Cryptocurrency is a novelty for all countries, and there are a lot of additional questions around it from both experienced and novice users. The Balkans have usually taken a hard line on cryptocurrencies, but Montenegro was one of the first countries in the region to step forward and change its approach.
Undoubtedly, this is a new business for the country. However, the Montenegrin Securities and Exchange Commission has supported the crypto trend and created a special legal regime that is designed to provide innovative companies with a more efficient way to interact with regulators. As for setting up a company in Cyprus, it’s also in the focus of attention.
How Does A Crypto Company Work In Montenegro?
As we have said, Montenegro has a flexible licensing and operating environment for crypto companies. However, since the country is an official EU candidate, certain rules still apply. This means that some practices are highly recommended when starting a cryptocurrency business within a regulatory sandbox:
First, you need to register a company in Montenegro with a physical office. There are no specific staffing or footprint requirements, but it is expected that you actually have an operating company and not a shell. The registration process is quite simple and will take less than a week, and the state fees will be less than 100 euros. It includes 8 steps:
- Certification of the charter at the state notary.
- Payment of the registration fee and publication fee.
- Request for a registration and customs certificate, as well as a VAT registration number.
- Obtaining a company seal.
- Opening a corporate bank account.
- Registration in the social insurance fund.
- Payment of the administrative municipal fee.
- Notification of the inspection body about the start of economic activity.
Upon completion of the registration process, the company must develop an anti-money laundering policy in full compliance with European standards. This means that you must follow anti-money laundering and anti-terrorist financing rules, internal controls, and have technical tools to track suspicious transactions.
Along with this policy, customer due diligence requirements should be established and a policy should be implemented to protect data that may be disclosed by the customer.